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Western Digital (WDC) Exceeds Market Returns: Some Facts to Consider
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Western Digital (WDC - Free Report) ended the recent trading session at $462.56, demonstrating a +1.78% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.2%. On the other hand, the Dow registered a gain of 0.04%, and the technology-centric Nasdaq increased by 0.04%.
Prior to today's trading, shares of the maker of hard drives for businesses and personal computers had gained 1.24% lagged the Computer and Technology sector's gain of 4.78% and outpaced the S&P 500's loss of 0.35%.
The upcoming earnings release of Western Digital will be of great interest to investors. On that day, Western Digital is projected to report earnings of $4.07 per share, which would represent year-over-year growth of 128.65%. Our most recent consensus estimate is calling for quarterly revenue of $4.16 billion, up 47.45% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $20.03 per share and revenue of $18.78 billion, which would represent changes of +95.99% and +45.39%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Western Digital. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, Western Digital boasts a Zacks Rank of #2 (Buy).
From a valuation perspective, Western Digital is currently exchanging hands at a Forward P/E ratio of 22.69. This denotes a premium relative to the industry average Forward P/E of 10.65.
We can additionally observe that WDC currently boasts a PEG ratio of 1.89. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Computer- Storage Devices industry held an average PEG ratio of 1.41.
The Computer- Storage Devices industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 18, placing it within the top 8% of over 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.
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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Western Digital (WDC) Exceeds Market Returns: Some Facts to Consider
Western Digital (WDC - Free Report) ended the recent trading session at $462.56, demonstrating a +1.78% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.2%. On the other hand, the Dow registered a gain of 0.04%, and the technology-centric Nasdaq increased by 0.04%.
Prior to today's trading, shares of the maker of hard drives for businesses and personal computers had gained 1.24% lagged the Computer and Technology sector's gain of 4.78% and outpaced the S&P 500's loss of 0.35%.
The upcoming earnings release of Western Digital will be of great interest to investors. On that day, Western Digital is projected to report earnings of $4.07 per share, which would represent year-over-year growth of 128.65%. Our most recent consensus estimate is calling for quarterly revenue of $4.16 billion, up 47.45% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $20.03 per share and revenue of $18.78 billion, which would represent changes of +95.99% and +45.39%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Western Digital. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, Western Digital boasts a Zacks Rank of #2 (Buy).
From a valuation perspective, Western Digital is currently exchanging hands at a Forward P/E ratio of 22.69. This denotes a premium relative to the industry average Forward P/E of 10.65.
We can additionally observe that WDC currently boasts a PEG ratio of 1.89. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Computer- Storage Devices industry held an average PEG ratio of 1.41.
The Computer- Storage Devices industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 18, placing it within the top 8% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.