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

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In the latest trading session, Western Digital (WDC - Free Report) closed at $47.50, marking a +1.02% move from the previous day. This move outpaced the S&P 500's daily loss of 0.34%.

Coming into today, shares of the maker of hard drives for businesses and personal computers had gained 5.73% in the past month. In that same time, the Computer and Technology sector gained 2.77%, while the S&P 500 gained 5.03%.

Western Digital will be looking to display strength as it nears its next earnings release, which is expected to be April 28, 2022. The company is expected to report EPS of $1.49, up 46.08% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.36 billion, up 5.41% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.95 per share and revenue of $18.87 billion. These totals would mark changes of +74.73% and +11.54%, respectively, from last year.

Investors should also note any 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.

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.

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 remained stagnant. Western Digital is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Western Digital has a Forward P/E ratio of 5.91 right now. Its industry sports an average Forward P/E of 15.03, 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 87, which puts it in the top 35% 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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