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Western Digital (WDC) closed at $44.82 in the latest trading session, marking a -0.93% move from the prior day. This move was narrower than the S&P 500's daily loss of 1.15%. Elsewhere, the Dow lost 0.52%, while the tech-heavy Nasdaq lost 0.37%.
Heading into today, shares of the maker of hard drives for businesses and personal computers had lost 16.27% over the past month, lagging the Computer and Technology sector's loss of 4.74% and the S&P 500's loss of 5.08% in that time.
Investors will be hoping for strength from Western Digital as it approaches its next earnings release. On that day, Western Digital is projected to report earnings of $1.76 per share, which would represent a year-over-year decline of 18.52%. Our most recent consensus estimate is calling for quarterly revenue of $4.61 billion, down 6.21% from the year-ago period.
Investors should also note any 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 8.96% lower. Western Digital is currently sporting a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that Western Digital has a Forward P/E ratio of 5.02 right now. Its industry sports an average Forward P/E of 11.95, so we one might conclude that Western Digital is trading at a discount comparatively.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 182, which puts it in the bottom 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Western Digital Corporation (WDC) : Free Stock Analysis Report
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