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

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Western Digital (WDC - Free Report) closed the most recent trading day at $49.50, moving +1.12% from the previous trading session. This change outpaced the S&P 500's 0.06% loss on the day. Elsewhere, the Dow gained 0.72%, while the tech-heavy Nasdaq added 0.64%.

Prior to today's trading, shares of the maker of hard drives for businesses and personal computers had lost 1.57% over the past month. This has was narrower than the Computer and Technology sector's loss of 4.23% and lagged the S&P 500's gain of 0.17% in that time.

Wall Street will be looking for positivity from Western Digital as it approaches its next earnings report date. This is expected to be April 28, 2022. 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, our latest consensus estimate is calling for revenue of $4.36 billion, up 5.41% from the prior-year quarter.

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.

Investors should also note any recent changes to analyst estimates for Western Digital. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% higher. Western Digital is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Western Digital is currently trading at a Forward P/E ratio of 6.16. This represents a discount compared to its industry's average Forward P/E of 15.02.

The Computer- Storage Devices industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 86, putting it in the top 34% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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