The latest trading session saw Western Digital (WDC – Free Report) ending at $43.66, denoting a -1.91% adjustment from its last day’s close. The stock’s change was less than the S&P 500’s daily gain of 0.08%. At the same time, the Dow added 0.08%, and the tech-heavy Nasdaq gained 0.52%.
Shares of the maker of hard drives for businesses and personal computers witnessed a loss of 37.57% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 12.04% and the S&P 500’s loss of 7.33%.
Market participants will be closely following the financial results of Western Digital in its upcoming release. In that report, analysts expect Western Digital to post earnings of $1.06 per share. This would mark year-over-year growth of 68.25%. In the meantime, our current consensus estimate forecasts the revenue to be $3.85 billion, indicating a 11.4% growth compared to the corresponding quarter of the prior year.
WDC’s full-year Zacks Consensus Estimates are calling for earnings of $5.46 per share and revenue of $16.27 billion. These results would represent year-over-year changes of +2830% and +25.13%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Western Digital. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.95% lower. Western Digital currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Western Digital currently has a Forward P/E ratio of 8.16. This valuation marks a discount compared to its industry’s average Forward P/E of 12.93.
The Computer- Storage Devices industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 31, placing it within the top 13% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Financial Market Newsflash
No financial news published today. Check back later.
