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Western Digital (WDC) Laps the Stock Market: Here's Why
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Western Digital (WDC - Free Report) closed at $78.50 in the latest trading session, marking a +1.72% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.1%. On the other hand, the Dow registered a loss of 0.08%, and the technology-centric Nasdaq increased by 0.28%.
Shares of the maker of hard drives for businesses and personal computers witnessed a gain of 2.92% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 8.41% and the S&P 500's gain of 4.08%.
Analysts and investors alike will be keeping a close eye on the performance of Western Digital in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.16, reflecting a 158.59% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $3.72 billion, up 39.37% from the year-ago period.
It's also important for investors to be aware of any recent modifications to analyst estimates for Western Digital. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Western Digital is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Western Digital has a Forward P/E ratio of 9.26 right now. This indicates a discount in contrast to its industry's Forward P/E of 18.83.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 69, which puts it in the top 28% of all 250+ industries.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Western Digital (WDC) Laps the Stock Market: Here's Why
Western Digital (WDC - Free Report) closed at $78.50 in the latest trading session, marking a +1.72% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.1%. On the other hand, the Dow registered a loss of 0.08%, and the technology-centric Nasdaq increased by 0.28%.
Shares of the maker of hard drives for businesses and personal computers witnessed a gain of 2.92% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 8.41% and the S&P 500's gain of 4.08%.
Analysts and investors alike will be keeping a close eye on the performance of Western Digital in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.16, reflecting a 158.59% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $3.72 billion, up 39.37% from the year-ago period.
It's also important for investors to be aware of any recent modifications to analyst estimates for Western Digital. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Western Digital is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Western Digital has a Forward P/E ratio of 9.26 right now. This indicates a discount in contrast to its industry's Forward P/E of 18.83.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 69, which puts it in the top 28% of all 250+ industries.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.