In the latest trading session, Western Digital (WDC - Free Report) closed at $51.44, marking a -1.1% move from the previous day. This move lagged the S&P 500's daily gain of 0.21%. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Prior to today's trading, shares of the maker of hard drives for businesses and personal computers had gained 8.08% over the past month. This has outpaced the Computer and Technology sector's gain of 5.1% and the S&P 500's gain of 2.57% in that time.
Investors will be hoping for strength from WDC as it approaches its next earnings release, which is expected to be April 29, 2019. On that day, WDC is projected to report earnings of $0.49 per share, which would represent a year-over-year decline of 86.5%. Our most recent consensus estimate is calling for quarterly revenue of $3.69 billion, down 26.4% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.55 per share and revenue of $16.69 billion. These totals would mark changes of -62.32% and -19.16%, respectively, from last year.
Any recent changes to analyst estimates for WDC should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. WDC is currently a Zacks Rank #3 (Hold).
Investors should also note WDC's current valuation metrics, including its Forward P/E ratio of 9.38. For comparison, its industry has an average Forward P/E of 15.92, which means WDC is trading at a discount to the group.
Also, we should mention that WDC has a PEG ratio of 0.49. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Computer- Storage Devices stocks are, on average, holding a PEG ratio of 1.51 based on yesterday's closing prices.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.