Western Digital (WDC) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Western Digital (WDC) closed at $61.64, marking a +0.98% move from the previous day.
Western Digital (WDC) closed at $61.64 in the latest trading session, marking a +0.98% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.28%.
Heading into today, shares of the maker of hard drives for businesses and personal computers had lost 6.01% over the past month, lagging the Computer and Technology sector's gain of 5.05% and the S&P 500's gain of 3.07% in that time.
Wall Street will be looking for positivity from WDC as it approaches its next earnings report date. On that day, WDC is projected to report earnings of $2.47 per share, which would represent year-over-year growth of 280%. Our most recent consensus estimate is calling for quarterly revenue of $5.04 billion, up 28.61% from the year-ago period.
WDC's full-year Zacks Consensus Estimates are calling for earnings of $10.71 per share and revenue of $20.78 billion. These results would represent year-over-year changes of +135.38% and +22.78%, respectively.
It is also important to note the recent changes to analyst estimates for WDC. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 9.45% higher. WDC is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, WDC currently has a Forward P/E ratio of 5.7. This valuation marks a discount compared to its industry's average Forward P/E of 27.89.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 119, putting it in the top 47% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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