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Western Digital (WDC) Surpasses Market Returns: Some Facts Worth Knowing
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Western Digital (WDC - Free Report) closed at $448.17 in the latest trading session, marking a +1.54% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.49%. Meanwhile, the Dow gained 0.71%, and the Nasdaq, a tech-heavy index, added 2.26%.
Shares of the maker of hard drives for businesses and personal computers have depreciated by 3.94% over the course of the past month, underperforming the Computer and Technology sector's gain of 2.97%, and the S&P 500's gain of 0.1%.
Investors will be eagerly watching for the performance of Western Digital in its upcoming earnings disclosure. In that report, analysts expect Western Digital to post earnings of $4.07 per share. This would mark year-over-year growth of 128.65%. Meanwhile, the latest consensus estimate predicts the revenue to be $4.16 billion, indicating a 47.45% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $20.03 per share and a revenue of $18.78 billion, indicating changes of +95.99% and +45.39%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Western Digital. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Western Digital boasts a Zacks Rank of #2 (Buy).
Investors should also note Western Digital's current valuation metrics, including its Forward P/E ratio of 22.03. For comparison, its industry has an average Forward P/E of 10.67, which means Western Digital is trading at a premium to the group.
Meanwhile, WDC's PEG ratio is currently 1.84. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Computer- Storage Devices stocks are, on average, holding a PEG ratio of 1.42 based on yesterday's closing prices.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 12, finds itself in the top 5% echelons of all 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.
To follow WDC in the coming trading sessions, be sure to utilize Zacks.com.
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Western Digital (WDC) Surpasses Market Returns: Some Facts Worth Knowing
Western Digital (WDC - Free Report) closed at $448.17 in the latest trading session, marking a +1.54% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.49%. Meanwhile, the Dow gained 0.71%, and the Nasdaq, a tech-heavy index, added 2.26%.
Shares of the maker of hard drives for businesses and personal computers have depreciated by 3.94% over the course of the past month, underperforming the Computer and Technology sector's gain of 2.97%, and the S&P 500's gain of 0.1%.
Investors will be eagerly watching for the performance of Western Digital in its upcoming earnings disclosure. In that report, analysts expect Western Digital to post earnings of $4.07 per share. This would mark year-over-year growth of 128.65%. Meanwhile, the latest consensus estimate predicts the revenue to be $4.16 billion, indicating a 47.45% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $20.03 per share and a revenue of $18.78 billion, indicating changes of +95.99% and +45.39%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Western Digital. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Western Digital boasts a Zacks Rank of #2 (Buy).
Investors should also note Western Digital's current valuation metrics, including its Forward P/E ratio of 22.03. For comparison, its industry has an average Forward P/E of 10.67, which means Western Digital is trading at a premium to the group.
Meanwhile, WDC's PEG ratio is currently 1.84. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Computer- Storage Devices stocks are, on average, holding a PEG ratio of 1.42 based on yesterday's closing prices.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 12, finds itself in the top 5% echelons of all 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.
To follow WDC in the coming trading sessions, be sure to utilize Zacks.com.