Western Digital (WDC) closed the most recent trading day at $513.84, moving -8.78% from the previous trading session. This move lagged the S&P 500's daily gain of 0.38%. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, added 0.62%.
Heading into today, shares of the maker of hard drives for businesses and personal computers had lost 17.29% over the past month, lagging the Computer and Technology sector's loss of 0.53% and the S&P 500's gain of 1.61%.
The investment community will be closely monitoring the performance of Western Digital in its forthcoming earnings report. The company is scheduled to release its earnings on August 5, 2026. The company is forecasted to report an EPS of $3.34, showcasing a 101.2% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $3.7 billion, showing a 42.21% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.06 per share and a revenue of $12.88 billion, indicating changes of +104.06% and -3.02%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Western Digital. 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 business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, the Zacks Consensus EPS estimate has moved 2.38% higher. Right now, Western Digital possesses a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Western Digital is presently trading at a Forward P/E ratio of 30.22. This valuation marks a premium compared to its industry average Forward P/E of 15.77.
The Computer- Storage Devices industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 24, positioning it in the top 10% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).