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Western Digital (WDC) Flat As Market Gains: What You Should Know

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In the latest trading session, Western Digital (WDC) closed at $46.35, marking no change from the previous day. This move lagged the S&P 500's daily gain of 0.22%. Meanwhile, the Dow lost 0.13%, and the Nasdaq, a tech-heavy index, added 0.22%.

Coming into today, shares of the maker of hard drives for businesses and personal computers had lost 18.41% in the past month. In that same time, the Computer and Technology sector lost 9.55%, while the S&P 500 lost 10.02%.

Western Digital will be looking to display strength as it nears its next earnings release. In that report, analysts expect Western Digital to post earnings of $1.76 per share. This would mark a year-over-year decline of 18.52%. Our most recent consensus estimate is calling for quarterly revenue of $4.61 billion, down 6.21% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $8.20 per share and revenue of $18.88 billion, which would represent changes of +80.22% and +11.57%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Western Digital. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection remained stagnant. Western Digital is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Western Digital is currently trading at a Forward P/E ratio of 5.66. Its industry sports an average Forward P/E of 11.68, so we one might conclude that Western Digital is trading at a discount comparatively.

The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 36% 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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