Western Digital (WDC - Free Report) closed at $47.94 in the latest trading session, marking a -0.81% move from the prior day. This change lagged the S&P 500's daily gain of 0.77%. At the same time, the Dow added 0.67%, and the tech-heavy Nasdaq gained 0.75%.
Heading into today, shares of the maker of hard drives for businesses and personal computers had gained 23.48% over the past month, outpacing the Computer and Technology sector's gain of 8.17% and the S&P 500's gain of 8.19% in that time.
WDC will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.17, down 95.29% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.69 billion, down 27.86% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for WDC. 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. 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 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 has moved 29.58% lower within the past month. WDC currently has a Zacks Rank of #3 (Hold).
Investors should also note WDC's current valuation metrics, including its Forward P/E ratio of 15.1. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 15.1.
Also, we should mention that WDC has a PEG ratio of 7.55. 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. WDC's industry had an average PEG ratio of 3.13 as of yesterday's close.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 177, putting it in the bottom 31% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.