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Western Digital (WDC) Outpaces Stock Market Gains: What You Should Know

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Western Digital (WDC) closed the most recent trading day at $66.64, moving +0.2% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.08%. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq lost 0.28%.

Coming into today, shares of the maker of hard drives for businesses and personal computers had gained 17.28% in the past month. In that same time, the Computer and Technology sector lost 5.11%, while the S&P 500 gained 0.22%.

Western Digital will be looking to display strength as it nears its next earnings release, which is expected to be January 27, 2022. On that day, Western Digital is projected to report earnings of $2.13 per share, which would represent year-over-year growth of 208.7%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.8 billion, up 21.79% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.72 per share and revenue of $19.58 billion. These totals would mark changes of +91.65% and +15.73%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Western Digital. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Western Digital currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Western Digital is holding a Forward P/E ratio of 7.63. This valuation marks a discount compared to its industry's average Forward P/E of 22.15.

The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 42% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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