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Western Digital (WDC) closed at $57.94 in the latest trading session, marking a +0.78% move from the prior day. This change outpaced the S&P 500’s 0.15% gain on the day.
Coming into today, shares of the maker of hard drives for businesses and personal computers had lost 8.12% in the past month. In that same time, the Computer and Technology sector gained 0.81%, while the S&P 500 lost 0.58%.
Wall Street will be looking for positivity from WDC as it approaches its next earnings report date. On that day, WDC is projected to report earnings of $2.47 per share, which would represent year-over-year growth of 280%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.04 billion, up 28.61% from the year-ago period.
WDC’s full-year Zacks Consensus Estimates are calling for earnings of $10.71 per share and revenue of $20.78 billion. These results would represent year-over-year changes of +135.38% and +22.78%, respectively.
Any recent changes to analyst estimates for WDC should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 has moved 0.15% 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 5.37. Its industry sports an average Forward P/E of 27.64, so we one might conclude that WDC is trading at a discount comparatively.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 183, putting it in the bottom 28% 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.
To follow WDC in the coming trading sessions, be sure to utilize Zacks.com.
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