Western Digital (WDC) closed the most recent trading day at $555.55, moving -4.64% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.79% for the day. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, lost 1.55%.
Coming into today, shares of the maker of hard drives for businesses and personal computers had gained 3.49% in the past month. In that same time, the Computer and Technology sector gained 3.44%, while the S&P 500 gained 4.28%.
Analysts and investors alike will be keeping a close eye on the performance of Western Digital in its upcoming earnings disclosure. In that report, analysts expect Western Digital to post earnings of $3.34 per share. This would mark year-over-year growth of 101.2%. 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.
It is also important to note the recent changes to analyst estimates for Western Digital. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 4.76% rise in the Zacks Consensus EPS estimate. As of now, Western Digital holds a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Western Digital is currently trading at a Forward P/E ratio of 31.26. This represents a premium compared to its industry average Forward P/E of 15.88.
The Computer- Storage Devices industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 6, this industry ranks in the top 3% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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Western Digital Corporation (WDC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).