We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Western Digital (WDC) Outpaces Stock Market Gains: What You Should Know
Read MoreHide Full Article
In the latest trading session, Western Digital (WDC - Free Report) closed at $37.83, marking a +0.4% move from the previous day. This move outpaced the S&P 500's daily gain of 0.22%. Meanwhile, the Dow gained 0.59%, and the Nasdaq, a tech-heavy index, added 0.16%.
Coming into today, shares of the maker of hard drives for businesses and personal computers had lost 2.69% in the past month. In that same time, the Computer and Technology sector lost 0.37%, while the S&P 500 gained 0.49%.
Investors will be hoping for strength from WDC as it approaches its next earnings release, which is expected to be January 24, 2019. The company is expected to report EPS of $1.53, down 61.27% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.27 billion, down 20.01% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.09 per share and revenue of $17.55 billion, which would represent changes of -51.87% and -15.01%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for WDC. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Within the past 30 days, our consensus EPS projection remained stagnant. WDC currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that WDC has a Forward P/E ratio of 5.31 right now. This represents a discount compared to its industry's average Forward P/E of 13.88.
Also, we should mention that WDC has a PEG ratio of 0.28. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Computer- Storage Devices stocks are, on average, holding a PEG ratio of 0.98 based on yesterday's closing prices.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 46, putting it in the top 18% of all 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Western Digital (WDC) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Western Digital (WDC - Free Report) closed at $37.83, marking a +0.4% move from the previous day. This move outpaced the S&P 500's daily gain of 0.22%. Meanwhile, the Dow gained 0.59%, and the Nasdaq, a tech-heavy index, added 0.16%.
Coming into today, shares of the maker of hard drives for businesses and personal computers had lost 2.69% in the past month. In that same time, the Computer and Technology sector lost 0.37%, while the S&P 500 gained 0.49%.
Investors will be hoping for strength from WDC as it approaches its next earnings release, which is expected to be January 24, 2019. The company is expected to report EPS of $1.53, down 61.27% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.27 billion, down 20.01% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.09 per share and revenue of $17.55 billion, which would represent changes of -51.87% and -15.01%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for WDC. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Within the past 30 days, our consensus EPS projection remained stagnant. WDC currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that WDC has a Forward P/E ratio of 5.31 right now. This represents a discount compared to its industry's average Forward P/E of 13.88.
Also, we should mention that WDC has a PEG ratio of 0.28. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Computer- Storage Devices stocks are, on average, holding a PEG ratio of 0.98 based on yesterday's closing prices.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 46, putting it in the top 18% of all 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.
You can find more information on all of these metrics, and much more, on Zacks.com.