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Why Western Digital (WDC) Dipped More Than Broader Market Today
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Western Digital (WDC - Free Report) closed at $732.95 in the latest trading session, marking a -1.78% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.37%. On the other hand, the Dow registered a gain of 0.29%, and the technology-centric Nasdaq decreased by 1.33%.
Shares of the maker of hard drives for businesses and personal computers witnessed a gain of 54.09% over the previous month, beating the performance of the Computer and Technology sector with its gain of 4.52%, and the S&P 500's gain of 2.02%.
The investment community will be paying close attention to the earnings performance of Western Digital in its upcoming release. The company's earnings per share (EPS) are projected to be $3.32, reflecting a 100% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.7 billion, up 42.21% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $10.05 per share and a revenue of $12.88 billion, demonstrating changes of +103.85% and -3.02%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Western Digital. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.37% rise in the Zacks Consensus EPS estimate. Western Digital currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Western Digital is currently trading at a Forward P/E ratio of 74.25. This indicates a premium in contrast to its industry's Forward P/E of 25.63.
The Computer- Storage Devices industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 5, this industry ranks in the top 3% of all industries, numbering over 250.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
View the Zacks #1 Rank List
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Why Western Digital (WDC) Dipped More Than Broader Market Today
Western Digital (WDC - Free Report) closed at $732.95 in the latest trading session, marking a -1.78% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.37%. On the other hand, the Dow registered a gain of 0.29%, and the technology-centric Nasdaq decreased by 1.33%.
Shares of the maker of hard drives for businesses and personal computers witnessed a gain of 54.09% over the previous month, beating the performance of the Computer and Technology sector with its gain of 4.52%, and the S&P 500's gain of 2.02%.
The investment community will be paying close attention to the earnings performance of Western Digital in its upcoming release. The company's earnings per share (EPS) are projected to be $3.32, reflecting a 100% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.7 billion, up 42.21% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $10.05 per share and a revenue of $12.88 billion, demonstrating changes of +103.85% and -3.02%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Western Digital. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.37% rise in the Zacks Consensus EPS estimate. Western Digital currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Western Digital is currently trading at a Forward P/E ratio of 74.25. This indicates a premium in contrast to its industry's Forward P/E of 25.63.
The Computer- Storage Devices industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 5, this industry ranks in the top 3% of all industries, numbering over 250.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.