Western Digital Corporation (WDC) Hits Fresh High: Is There Still Room to Run?

Core Viewpoint - Western Digital (WDC) has experienced significant stock price appreciation, with a 46.6% increase over the past month and a 101.3% rise since the beginning of the year, outperforming both the Zacks Computer and Technology sector and the Zacks Computer-Storage Devices industry [1][3]. Financial Performance - The company has consistently exceeded earnings expectations, reporting an EPS of $1.66 against a consensus estimate of $1.48 in its last earnings report [2]. - For the current fiscal year, Western Digital is projected to achieve earnings of $6.62 per share on revenues of $10.92 billion, reflecting a 34.28% increase in EPS but a 17.76% decline in revenues. The next fiscal year is expected to see earnings of $7.34 per share on $11.28 billion in revenues, indicating year-over-year changes of 10.91% and 3.32%, respectively [3]. Valuation Metrics - The stock currently trades at 18.1 times the current fiscal year EPS estimates, aligning with the peer industry average. On a trailing cash flow basis, it also trades at 19.8 times, matching the peer group's average. The PEG ratio stands at 0.93, suggesting that the company is not among the top value stocks [7]. - Western Digital has a Value Score of C, a Growth Score of B, and a Momentum Score of A, resulting in a combined VGM Score of A [6]. Zacks Rank - The stock holds a Zacks Rank of 1 (Strong Buy), driven by rising earnings estimates, which is a critical factor for investors [8]. - Given the Zacks Rank and Style Scores, Western Digital appears to have potential for further stock price appreciation in the near term [9].