In the latest trading session, Western Digital (WDC - Free Report) closed at $57.78, marking a +1.69% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.8%. Meanwhile, the Dow gained 0.47%, and the Nasdaq, a tech-heavy index, added 1.12%.
Prior to today's trading, shares of the maker of hard drives for businesses and personal computers had lost 4.23% over the past month. This has lagged the Computer and Technology sector's loss of 0.72% and the S&P 500's loss of 1.07% in that time.
Investors will be hoping for strength from WDC as it approaches its next earnings release. The company is expected to report EPS of $0.27, down 91.12% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.90 billion, down 22.39% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.04 per share and revenue of $16.56 billion. These totals would mark changes of -37.19% and -0.06%, 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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 remained stagnant 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 18.68. For comparison, its industry has an average Forward P/E of 18.68, which means WDC is trading at a no noticeable deviation to the group.
Also, we should mention that WDC has a PEG ratio of 9.34. 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. WDC's industry had an average PEG ratio of 3.62 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 27, putting it in the top 11% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.