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Here's Why Western Digital (WDC) Fell More Than Broader Market
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In the latest close session, Western Digital (WDC - Free Report) was down 13.17% at $586.45. The stock fell short of the S&P 500, which registered a loss of 0.05% for the day. Elsewhere, the Dow saw a downswing of 0.09%, while the tech-heavy Nasdaq depreciated by 0.24%.
The stock of maker of hard drives for businesses and personal computers has risen by 27.15% in the past month, leading the Computer and Technology sector's loss of 2.81% and the S&P 500's loss of 1.42%.
The investment community will be closely monitoring the performance of Western Digital in its forthcoming earnings report. The company is predicted to post an EPS of $3.32, indicating a 100% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $3.7 billion, showing a 42.21% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.05 per share and a revenue of $12.87 billion, indicating changes of +103.85% and -3.11%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Western Digital. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.37% upward. Currently, Western Digital is carrying a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Western Digital is currently being traded at a Forward P/E ratio of 67.2. This expresses a premium compared to the average Forward P/E of 26.49 of its industry.
The Computer- Storage Devices industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 6, placing it within the top 3% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Here's Why Western Digital (WDC) Fell More Than Broader Market
In the latest close session, Western Digital (WDC - Free Report) was down 13.17% at $586.45. The stock fell short of the S&P 500, which registered a loss of 0.05% for the day. Elsewhere, the Dow saw a downswing of 0.09%, while the tech-heavy Nasdaq depreciated by 0.24%.
The stock of maker of hard drives for businesses and personal computers has risen by 27.15% in the past month, leading the Computer and Technology sector's loss of 2.81% and the S&P 500's loss of 1.42%.
The investment community will be closely monitoring the performance of Western Digital in its forthcoming earnings report. The company is predicted to post an EPS of $3.32, indicating a 100% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $3.7 billion, showing a 42.21% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.05 per share and a revenue of $12.87 billion, indicating changes of +103.85% and -3.11%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Western Digital. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.37% upward. Currently, Western Digital is carrying a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Western Digital is currently being traded at a Forward P/E ratio of 67.2. This expresses a premium compared to the average Forward P/E of 26.49 of its industry.
The Computer- Storage Devices industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 6, placing it within the top 3% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.