Is Most-Watched Stock Western Digital Corporation (WDC) Worth Betting on Now?

Core Viewpoint - Western Digital (WDC) has gained significant attention in the market, with a notable stock performance increase of +24.5% over the past month, outperforming the S&P 500 composite and the Computer-Storage Devices industry [2][16] Earnings Estimates - For the current quarter, Western Digital is projected to report earnings of $1.57 per share, reflecting a decrease of -11.8% year-over-year, with the consensus estimate remaining unchanged [5] - The consensus earnings estimate for the current fiscal year stands at $6.5, indicating a growth of +31.9% from the previous year, also unchanged over the last 30 days [5] - For the next fiscal year, the earnings estimate is $7.11, suggesting a growth of +9.4% compared to the prior year, with no changes in the estimate over the past month [6] Revenue Growth Forecast - The consensus sales estimate for the current quarter is $2.7 billion, indicating a significant decline of -34% year-over-year [9] - For the current fiscal year, revenue estimates are $10.92 billion, reflecting a decrease of -17.8%, while the next fiscal year's estimate of $11.28 billion shows a modest increase of +3.3% [9] Last Reported Results and Surprise History - In the last reported quarter, Western Digital achieved revenues of $2.61 billion, down -30.8% year-over-year, with an EPS of $1.66 compared to $1.44 a year ago [10] - The company exceeded the Zacks Consensus Estimate for revenues by +6.13% and for EPS by +12.16% [10] - Western Digital has consistently beaten consensus EPS estimates in the last four quarters and topped revenue estimates three times during this period [11] Valuation - Western Digital holds a Zacks Value Style Score of C, indicating that it is trading at par with its peers [15] - The assessment of valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) is essential for determining the stock's fair value relative to its historical values and peers [13][14] Bottom Line - The Zacks Rank 1 (Strong Buy) for Western Digital suggests a potential for outperforming the broader market in the near term, despite the mixed signals from earnings and revenue estimates [7][16]