Western Digital (WDC) closed at $125.28 in the latest trading session, marking a -4.59% move from the prior day. This change lagged the S&P 500's 0.37% gain on the day. On the other hand, the Dow registered a loss of 0.14%, and the technology-centric Nasdaq increased by 0.71%. Shares of the maker of hard drives for businesses and personal computers have appreciated by 42.67% over the course of the past month, outperforming the Computer and Technology sector's gain of 8.04%, and the S&P 500's gain of 4.26%.I ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.While many investors like to look for momentum i ...

Western Digital (WDC) closed the most recent trading day at $120.06, moving +2.84% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.41%. Meanwhile, the Dow experienced a rise of 0.18%, and the technology-dominated Nasdaq saw an increase of 0.31%. Prior to today's trading, shares of the maker of hard drives for businesses and personal computers had gained 45.31% outpaced the Computer and Technology sector's gain of 7.63% and the S&P 500's gain of 3.15%.Mar ...

Group 1 - Western Digital's stock closed at $110.25, reflecting a -1.92% change from the previous day's closing price, which is less than the S&P 500's daily loss of 0.55% [1] - The stock has increased by 41.9% over the past month, outperforming the Computer and Technology sector's gain of 9.88% and the S&P 500's gain of 3.64% [1] Group 2 - The upcoming earnings per share (EPS) for Western Digital is projected at $1.57, indicating an 11.80% decline compared to the same quarter last year, with revenue expected to be $2.7 billion, down 34.03% from the prior-year quarter [2] - For the entire year, the Zacks Consensus Estimates forecast earnings of $6.52 per share and revenue of $10.92 billion, reflecting changes of +32.25% and -17.76% respectively compared to the previous year [3] Group 3 - Recent changes to analyst estimates for Western Digital are important as they reflect shifting business dynamics, with upward revisions indicating analysts' positive outlook on the company's operations [4] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has Western Digital currently rated at 3 (Hold), with the consensus EPS estimate remaining unchanged over the last 30 days [6] Group 4 - Western Digital has a Forward P/E ratio of 17.25, which is in line with the industry average [7] - The company's PEG ratio is currently 1.17, compared to the Computer-Storage Devices industry's average PEG ratio of 2.19, indicating a more favorable valuation relative to expected earnings growth [8] Group 5 - The Computer-Storage Devices industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 206, placing it in the bottom 17% of over 250 industries [8] - The Zacks Industry Rank measures the strength of industry groups based on the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [9]

Core Insights - Super Micro Computer (SMCI) stock has increased by 6.4% over the past month, which is lower than the Zacks Computer-Storage Devices industry's return of 23.6% [1][5] - Despite the stock's rise, it is trading at a forward P/E ratio of 20.45X, which is below the industry average of 21.76X, raising questions about whether to hold or exercise caution [4] Financial Performance - In fiscal 2025, SMCI reported a 47% year-over-year revenue growth, reaching $22 billion, with expectations to increase revenues to $33 billion in fiscal 2026 [5][7] - The company's next-generation air-cooled and liquid-cooled GPU and AI platforms contributed over 70% to its top line in Q4 of fiscal 2025 [8] Market Position and Growth Drivers - SMCI is becoming a significant player in the AI server market, leveraging the latest NVIDIA and AMD platforms to drive growth [6][7] - The company's direct liquid cooling technology is in high demand, particularly among hyperscalers and AI data centers, due to its efficiency in reducing heat and electricity consumption by 40% [9] Competitive Landscape - SMCI faces rising competition from major players like Pure Storage, Dell Technologies, and Hewlett Packard Enterprise, which could impact its market share [10][11] - The company is experiencing challenges such as delayed purchasing decisions from customers evaluating next-generation AI platforms and margin contraction due to price competition [13][14] Earnings Estimates - The Zacks Consensus Estimate for SMCI's earnings per share (EPS) shows a decline of 37% and 5% for the first and second quarters of fiscal 2026, respectively [14][15] - Year-over-year growth estimates for fiscal 2026 indicate a 23.3% increase, followed by a 29.2% increase in fiscal 2027 [15] Conclusion - Given the mixed challenges and long-term growth potential in server, storage, and cooling products, the recommendation is to hold SMCI stock at this time [16]

Key Takeaways SMCI's DCBBS integrates liquid cooling to boost efficiency, power, and density for AI and HPC workloads.The company expects $6-$7B in Q1 FY26 revenues from AI racks, DCBBS, software, and services.SMCI stock has surged 46.7% YTD, outpacing industry growth of 2.8%, with lower valuation multiples.Super Micro Computer’s (SMCI) Data Center Building Block Solutions (DCBBS) is experiencing traction among customers operating in artificial intelligence (AI), hyperscale and high-performance computing (H ...

Company Overview - Western Digital (WDC) closed at $80.34, down 2.07% from the previous trading session, underperforming the S&P 500's loss of 0.64% [1] - Over the past month, WDC shares gained 4.26%, outperforming the Computer and Technology sector's gain of 2.91% and the S&P 500's gain of 1.91% [1] Upcoming Earnings - Analysts expect Western Digital to report earnings of $1.57 per share, reflecting a year-over-year decline of 11.8% [2] - The consensus estimate projects revenue of $2.7 billion, indicating a 34.03% decrease from the same quarter last year [2] Fiscal Year Estimates - For the entire fiscal year, Zacks Consensus Estimates predict earnings of $6.5 per share and revenue of $10.92 billion, representing changes of +31.85% and -17.76% respectively from the previous year [3] - Recent changes in analyst estimates may indicate shifting business trends, with positive revisions suggesting analyst optimism [3] Zacks Rank and Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown that 1 stocks have contributed an average annual return of +25% since 1988 [5] - Western Digital currently holds a Zacks Rank of 1 (Strong Buy), with a 9.55% rise in the Zacks Consensus EPS estimate over the past month [5] Valuation Metrics - Western Digital is trading at a Forward P/E ratio of 12.62, which is lower than its industry's Forward P/E of 15.14 [6] - The company has a PEG ratio of 0.91, compared to the average PEG ratio of 2.32 for the Computer-Storage Devices industry [6] Industry Context - The Computer-Storage Devices industry is part of the Computer and Technology sector, holding a Zacks Industry Rank of 39, placing it in the top 16% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Insights - Super Micro Computer, Inc. (SMCI) aims to achieve revenues of at least $33 billion in fiscal 2026, reflecting a significant 50% year-over-year growth [1] - The company reported a 47% year-over-year revenue increase to $22 billion in fiscal 2025, despite facing supply constraints and regulatory delays [1][4] Revenue Growth Strategy - SMCI is focusing on its Data Center Building Block Solutions (DCBBS), which provide modular infrastructure for AI data centers, reducing deployment time and costs [2] - The company anticipates that DCBBS will attract both hyperscale and enterprise customers, with several large-scale clients already engaged and more expected in fiscal 2026 [2] Market Demand and Partnerships - The increasing demand for AI computing supports SMCI's growth target, bolstered by partnerships with vendors like NVIDIA and Advanced Micro Devices [3] - Expansion into Europe, Asia, and the Middle East presents additional growth opportunities for the company [3] Competitive Landscape - SMCI competes with Dell Technologies and Hewlett Packard Enterprise in the AI and data center market [5] - Dell Technologies has a strong position due to its established distribution and service offerings, while Hewlett Packard Enterprise focuses on hybrid cloud and AI workloads, making it a direct competitor [6][7] Financial Performance and Valuation - SMCI's shares have increased approximately 44.6% year-to-date, outperforming the Zacks Computer – Storage Devices industry's gain of 11.7% [8] - The company trades at a forward price-to-earnings ratio of 16.61, which is lower than the industry average of 17.71 [10] Earnings Estimates - The Zacks Consensus Estimate for SMCI's fiscal 2026 revenues is $32.54 billion, indicating a year-over-year increase of 48.1% [4] - Earnings estimates for fiscal 2026 and 2027 imply year-over-year increases of approximately 23.3% and 29.2%, respectively, although these estimates have been revised downward in the past 30 days [11]

Company Overview - Western Digital (WDC) currently holds a Momentum Style Score of A, indicating strong momentum potential [3] - The company has a Zacks Rank of 1 (Strong Buy), which is associated with a historical outperformance in the market [4] Price Performance - WDC shares have increased by 11.23% over the past week, while the Zacks Computer-Storage Devices industry has decreased by 3.66% during the same period [6] - Over the last month, WDC's price change is 13.35%, significantly outperforming the industry's 0.89% [6] - In the last quarter, WDC shares have risen by 49.97%, and over the past year, they have gained 25.62%, compared to the S&P 500's increases of 13.18% and 21.49%, respectively [7] Trading Volume - The average 20-day trading volume for WDC is 7,489,715 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, five earnings estimates for WDC have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $5.70 to $6.50 [10] - For the next fiscal year, one estimate has moved upwards, with no downward revisions noted [10] Conclusion - Given the strong price performance, positive earnings outlook, and high momentum score, WDC is positioned as a promising investment opportunity [12]

Financial Performance - Netlist, Inc. reported a quarterly loss of $0.02 per share, consistent with the Zacks Consensus Estimate, compared to a loss of $0.06 per share a year ago [1] - The company posted revenues of $41.71 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 39.02%, and up from $36.83 million year-over-year [2] - Over the last four quarters, Netlist has surpassed consensus revenue estimates four times, but has only exceeded consensus EPS estimates once [2][1] Stock Performance and Outlook - Netlist shares have declined approximately 13.8% since the beginning of the year, while the S&P 500 has gained 7.9% [3] - The company's earnings outlook will be crucial for future stock movements, with current consensus EPS estimates at -$0.01 for the coming quarter and -$0.07 for the current fiscal year [4][7] Industry Context - The Computer-Storage Devices industry, to which Netlist belongs, is currently ranked in the top 28% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Netlist's stock performance [5][6]