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Western Digital (WDC) Stock Sinks As Market Gains: Here's Why
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Western Digital (WDC - Free Report) closed at $415.29 in the latest trading session, marking a -10.22% move from the prior day. This change lagged the S&P 500's daily gain of 0.73%. On the other hand, the Dow registered a gain of 0.49%, and the technology-centric Nasdaq increased by 1.19%.
Shares of the maker of hard drives for businesses and personal computers have appreciated by 4.75% over the course of the past month, underperforming the Computer and Technology sector's gain of 6.36%, and outperforming the S&P 500's gain of 0.55%.
The investment community will be paying close attention to the earnings performance of Western Digital in its upcoming release. The company's upcoming EPS is projected at $4.07, signifying a 128.65% increase compared to the same quarter of the previous year. 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.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $20.03 per share and a revenue of $18.78 billion, signifying shifts of +95.99% and +45.39%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Western Digital. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Western Digital is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Western Digital is presently being traded at a Forward P/E ratio of 23.09. This valuation marks a premium compared to its industry average Forward P/E of 11.05.
We can also see that WDC currently has a PEG ratio of 1.92. 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. The average PEG ratio for the Computer- Storage Devices industry stood at 1.47 at the close of the market yesterday.
The Computer- Storage Devices industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 16, this industry ranks in the top 7% of all industries, numbering over 250.
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.
View the Zacks #1 Rank List
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Western Digital (WDC) Stock Sinks As Market Gains: Here's Why
Western Digital (WDC - Free Report) closed at $415.29 in the latest trading session, marking a -10.22% move from the prior day. This change lagged the S&P 500's daily gain of 0.73%. On the other hand, the Dow registered a gain of 0.49%, and the technology-centric Nasdaq increased by 1.19%.
Shares of the maker of hard drives for businesses and personal computers have appreciated by 4.75% over the course of the past month, underperforming the Computer and Technology sector's gain of 6.36%, and outperforming the S&P 500's gain of 0.55%.
The investment community will be paying close attention to the earnings performance of Western Digital in its upcoming release. The company's upcoming EPS is projected at $4.07, signifying a 128.65% increase compared to the same quarter of the previous year. 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.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $20.03 per share and a revenue of $18.78 billion, signifying shifts of +95.99% and +45.39%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Western Digital. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Western Digital is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Western Digital is presently being traded at a Forward P/E ratio of 23.09. This valuation marks a premium compared to its industry average Forward P/E of 11.05.
We can also see that WDC currently has a PEG ratio of 1.92. 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. The average PEG ratio for the Computer- Storage Devices industry stood at 1.47 at the close of the market yesterday.
The Computer- Storage Devices industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 16, this industry ranks in the top 7% of all industries, numbering over 250.
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.