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Western Digital (WDC) Ascends But Remains Behind Market: Some Facts to Note

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Western Digital (WDC - Free Report) ended the recent trading session at $62.79, demonstrating a +0.29% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.45%. Meanwhile, the Dow lost 0.23%, and the Nasdaq, a tech-heavy index, added 0.84%.

The maker of hard drives for businesses and personal computers's shares have seen an increase of 3.71% over the last month, surpassing the Computer and Technology sector's loss of 0.98% and the S&P 500's gain of 2.54%.

Market participants will be closely following the financial results of Western Digital in its upcoming release. The company's upcoming EPS is projected at $1.72, signifying a 197.73% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.11 billion, up 49.5% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.35 per share and a revenue of $17.13 billion, indicating changes of +4275% and +31.77%, respectively, from the former year.

Any recent changes to analyst estimates for Western Digital should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 17.02% downward. As of now, Western Digital holds a Zacks Rank of #3 (Hold).

In the context of valuation, Western Digital is at present trading with a Forward P/E ratio of 7.5. This valuation marks a discount compared to its industry's average Forward P/E of 12.23.

The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 159, which puts it in the bottom 38% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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