Western Digital (WDC) closed at $44.47 in the latest trading session, marking a -1.83% move from the prior day. This change lagged the S&P 500's 0.74% loss on the day.
Heading into today, shares of the maker of hard drives for businesses and personal computers had lost 15.69% over the past month, lagging the Computer and Technology sector's loss of 7.96% and the S&P 500's loss of 4.6% in that time.
Western Digital will be looking to display strength as it nears its next earnings release. In that report, analysts expect Western Digital to post earnings of $1.49 per share. This would mark year-over-year growth of 46.08%. Our most recent consensus estimate is calling for quarterly revenue of $4.38 billion, up 5.76% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.95 per share and revenue of $18.87 billion, which would represent changes of +74.73% and +11.54%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Western Digital. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.82% lower. Western Digital is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Western Digital is currently trading at a Forward P/E ratio of 5.7. For comparison, its industry has an average Forward P/E of 16.39, which means Western Digital is trading at a discount to the group.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 71, which puts it in the top 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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