The latest trading session saw Western Digital (WDC) ending at $35.93, denoting a +0.31% adjustment from its last day's close. This move outpaced the S&P 500's daily loss of 0.17%. Elsewhere, the Dow lost 0.39%, while the tech-heavy Nasdaq lost 0.05%.Coming into today, shares of the maker of hard drives for businesses and personal computers had lost 19.96% in the past month. In that same time, the Computer and Technology sector lost 6.26%, while the S&P 500 lost 3.94%.The investment community will be paying ...

Benchmark analyst Mark Miller upgraded Western Digital Corp WDC from Hold to Buy with a $55 price target Thursday.Investor’s concern over tariffs has produced compelling valuations for some tech hardware stocks.In Benchmark’s 26 years of coverage, the forward valuations of hard drive stocks have typically ranged from mid-single digits to teen multiples.Also Read: Western Digital Faces ‘Challenging Pricing Environment,’ But There’s Long-Term Potential: AnalystsWestern Digital stock is trading at the low end ...

Western Digital (WDC) shares ended the last trading session 15.1% higher at $36.30. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 24.5% loss over the past four weeks.The increase in share price can be credited to President Trump’s announcement of a 90-day halt on reciprocal tariffs, excluding China. This triggered a sharp rally in market indices, lifting the prices of many stocks, including Western Digital.In add ...

With recent innovations in generative AI, it has been easy to get caught up in the market's obsession with chipmakers whose products drive the processing power under the hood such as NVIDIA ( NVDA ) while neglecting other direct beneficiaries ofI am a full-time data scientist by trade and I have a growing passion for utilizing data-driven analysis to identify stock picking opportunities for long-term generation of wealth. My goal is to build as large a nest egg as possible for my retirement and, even more i ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Western Digital (WDC) , which belongs to the Zacks Computer- Storage Devices industry.When looking at the last two reports, this maker of hard drives for businesses and personal computers has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 1.72%, on average, in the last two quarters.For the last reported quarter, ...

Company Performance - Western Digital's stock closed at $43.66, reflecting a decrease of -1.91% from the previous day, underperforming the S&P 500's gain of 0.08% [1] - Over the past month, Western Digital shares have declined by 37.57%, significantly worse than the Computer and Technology sector's loss of 12.04% and the S&P 500's loss of 7.33% [2] Financial Expectations - Analysts anticipate Western Digital will report earnings of $1.06 per share, representing a year-over-year growth of 68.25%. Revenue is expected to reach $3.85 billion, indicating an 11.4% increase compared to the same quarter last year [3] - For the full year, Zacks Consensus Estimates project earnings of $5.46 per share and revenue of $16.27 billion, which would signify year-over-year changes of +2830% and +25.13%, respectively [4] Analyst Projections - Recent shifts in analyst projections for Western Digital are crucial, as they reflect short-term business trends. Positive estimate revisions are seen as a sign of optimism regarding the company's outlook [5] - The Zacks Rank system, which incorporates estimate changes, currently ranks Western Digital at 3 (Hold), with the consensus EPS estimate having decreased by 0.95% over the last 30 days [7] Valuation Metrics - Western Digital has a Forward P/E ratio of 8.16, which is lower than the industry's average Forward P/E of 12.93, indicating a valuation discount [8] - The Computer-Storage Devices industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 31, placing it in the top 13% of over 250 industries [8]

Group 1 - The article discusses a long-term, contrarian approach to equities investing, with a focus on the Tech, Commodities, and Energy sectors as the world undergoes an energy transition [1] Group 2 - There are no disclosed stock, option, or derivative positions in any mentioned companies, and no plans to initiate such positions in the near future [2] - The article expresses personal opinions and is not influenced by compensation from any companies mentioned [2] Group 3 - Past performance is noted as not guaranteeing future results, and no specific investment recommendations are provided [3] - The views expressed may not reflect those of Seeking Alpha as a whole, and the analysts may not be licensed or certified [3]

Company Performance - Western Digital's stock closed at $44.75, reflecting a +0.49% change from the previous session, underperforming the S&P 500 which gained 0.64% [1] - Over the past month, Western Digital shares have decreased by 34.89%, while the Computer and Technology sector and the S&P 500 have lost 11.22% and 7.69% respectively [2] Earnings Projections - The upcoming earnings per share (EPS) for Western Digital is projected at $1.06, indicating a significant increase of 68.25% compared to the same quarter last year [3] - Quarterly revenue is estimated to be $3.85 billion, which represents an 11.4% increase from the previous year [3] Full Year Estimates - For the full year, earnings are projected at $5.46 per share and revenue at $16.27 billion, showing increases of +2830% and +25.13% respectively from the prior year [4] - Recent changes in analyst estimates suggest a positive outlook for the company's business and profitability [4] Analyst Ratings and Valuation - The Zacks Rank system currently rates Western Digital as 3 (Hold), with a recent 0.95% decrease in the consensus EPS estimate over the last 30 days [6] - Western Digital has a Forward P/E ratio of 8.16, which is lower than the industry average of 12.72, indicating it is trading at a discount [7] Industry Context - The Computer-Storage Devices industry, part of the Computer and Technology sector, ranks in the top 33% of all industries according to the Zacks Industry Rank [7] - The Zacks Industry Rank assesses the strength of industry groups, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [8]

Core Viewpoint - SanDisk Corp. will replace Leslie Inc. in the S&P SmallCap 600 effective February 25, 2025, due to Leslie's market capitalization no longer being representative of the small cap market space [1]. Group 1: Index Changes - SanDisk (SNDK) will be added to the S&P SmallCap 600 on February 25, 2025, in the Information Technology sector [2]. - Leslie (LESL) will be deleted from the S&P SmallCap 600 on the same date, categorized under the Consumer Discretionary sector [2]. Group 2: Corporate Actions - Western Digital Corp. is spinning off SanDisk, with the transaction expected to be completed on February 24, 2025, and Western Digital will remain in the S&P 500 post spin-off [1].

Core Viewpoint - Western Digital's strong Q2 2025 results, driven by record nearline shipments and the adoption of UltraSMR technology, have led to a significant stock price increase, outperforming the S&P 500 [1][2] Financial Performance - Q2 2025 revenue surged 41% year-over-year to $4.3 billion, with cloud-related revenue accounting for 55% of total sales at $2.3 billion, more than doubling year-over-year [2] - Client revenue rose 4% year-over-year, while consumer revenue dropped 8% year-over-year due to lower HDD and Flash shipments [2] - Gross margins expanded significantly to 35.4% from 16.2% a year earlier, and diluted earnings per share improved to $1.77 from a loss of $0.93 in Q2 2024 [2] Stock Performance - Over the past four years, Western Digital's stock has shown volatility, with an 18% gain in 2021, a 52% decline in 2022, a 66% rebound in 2023, and a 14% rise in 2024 [3] - In comparison, the Trefis High Quality Portfolio has demonstrated more stability and outperformed the S&P 500 during the same period [3] Valuation Insights - The adjusted valuation for Western Digital is $76 per share, based on an expected EPS of $5.82 and a 13.1x price-to-earnings multiple for fiscal 2025, indicating a nearly 13% premium over the current market price [4] - Analysts' average price target of $84 suggests a potential 25% upside, indicating room for further growth [4] Business Separation and Future Projections - Western Digital is set to finalize the separation of its Flash and HDD businesses by February 21, 2025, with projected Q3 revenue between $3.75 billion and $3.95 billion [5] - Operating expenses are expected to rise to between $700 million and $720 million due to one-time separation costs [5] Segment Performance Expectations - The Flash business is anticipated to see a mid-teens percentage revenue decline in Q3, while the HDD segment is projected to experience a mid-to-high single-digit percentage revenue decline [6] - HDD gross margins are expected to improve by approximately 50 basis points as average selling prices increase [6]