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

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In the latest trading session, Western Digital (WDC) closed at $50.70, marking a -0.22% move from the previous day. This change lagged the S&P 500's daily gain of 0.71%. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 0.15%.

Prior to today's trading, shares of the maker of hard drives for businesses and personal computers had lost 4.04% over the past month. This has lagged the Computer and Technology sector's gain of 2.62% and the S&P 500's gain of 3.76% in that time.

Investors will be hoping for strength from Western Digital as it approaches 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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.

Any recent changes to analyst estimates for Western Digital should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 1.82% lower. Western Digital currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Western Digital currently has a Forward P/E ratio of 6.39. Its industry sports an average Forward P/E of 16.7, 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 78, which puts it in the top 31% 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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