In the latest trading session, Western Digital (WDC - Free Report) closed at $51.49, marking no change from the previous day. This change was narrower than the S&P 500's 0.65% loss on the day. Elsewhere, the Dow lost 0.42%, while the tech-heavy Nasdaq lost 0.46%.
Prior to today's trading, shares of the maker of hard drives for businesses and personal computers had gained 35.11% over the past month. This has outpaced the Computer and Technology sector's gain of 5.63% and the S&P 500's gain of 4.11% in that time.
Investors will be hoping for strength from WDC as it approaches its next earnings release, which is expected to be July 31, 2019. 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 help to show the ever-changing nature of near-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 4.97% lower within the past month. WDC is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, WDC is currently trading at a Forward P/E ratio of 16.08. Its industry sports an average Forward P/E of 16.08, so we one might conclude that WDC is trading at a no noticeable deviation comparatively.
It is also worth noting that WDC currently has a PEG ratio of 8.04. 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. The Computer- Storage Devices was holding an average PEG ratio of 3.2 at yesterday's closing price.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 170, which puts it in the bottom 34% 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.