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Bull of the Day: Western Digital (WDC)

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Key Takeaways

  • WDC shares have gained an incredible +55% over the last three months.
  • Analysts are bullish thanks to strong quarterly results stemming from snowballing demand for AI solutions.
  • The stock reflects a great long-term opportunity concerning the AI outlook.

Western Digital (WDC - Free Report) provides scalable, sustainable technology for the world’s hyperscalers, enterprises, and cloud providers, delivering cutting-edge innovation that drives the next generation of AI-driven data workloads.

The stock sports a bullish Zacks Rank #1 (Strong Buy), with EPS expectations moving higher across the board over recent months.

Zacks Investment Research
Image Source: Zacks Investment Research

WDC also resides in the Zacks Computer – Storage industry, which is currently ranked in the top 18% of all Zacks industries.

WDC Sees AI Momentum

WDC shares have been red-hot over the past three months thanks to strong quarterly results, gaining more than 55% and crushing the S&P 500. The company enjoyed nice growth throughout its latest period, with sales of $2.6 billion up 30% YoY and eclipsing prior guidance.

Zacks Investment Research
Image Source: Zacks Investment Research

Margin performance was notably strong, with WDC’s gross margin improving to 41.0% vs. the 34.8% mark in the same period last year. The company also initiated a cash dividend and reduced its debt by a sizable $2.6 billion, further adding to the positivity.

Irving Tan, CEO, remains bullish on WDC’s outlook, stating –

“We are confident that HDDs will continue to remain the foundation of the world’s data infrastructure, delivering unmatched value for mass storage in an AI-driven future.”

WDC shares have also recently experienced the ‘Golden Cross,’ as illustrated in the chart below. The Golden Cross occurs when the shorter 50-day moving average rises above the 200-day moving average, reflecting bullish momentum.

Zacks Investment Research
Image Source: Zacks Investment Research

Bottom Line

Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.

The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.

Western Digital (WDC - Free Report) would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy). 


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