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Why Western Digital (WDC) is a Top Momentum Stock for the Long-Term
ZACKS· 2025-10-01 14:51
Core Insights - Zacks Premium provides various tools and resources to help investors make informed decisions and invest confidently in the stock market [1][2] Zacks Style Scores - Zacks Style Scores are indicators designed to assist investors in selecting stocks with the highest potential to outperform the market within a 30-day timeframe [3] - Each stock is rated from A to F based on value, growth, and momentum characteristics, with A being the highest score [3] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [4] Growth Score - The Growth Score emphasizes a company's financial health and future growth potential by analyzing projected and historical earnings, sales, and cash flow [5] Momentum Score - The Momentum Score helps investors capitalize on price trends by evaluating recent price changes and earnings estimate revisions [6] VGM Score - The VGM Score combines the Value, Growth, and Momentum Scores, providing a comprehensive assessment of stocks based on their weighted styles [7] Zacks Rank - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.64% since 1988 [8][10] Stock to Watch: Western Digital (WDC) - Western Digital Corporation is a leading manufacturer of data storage devices, offering a range of HDD and Flash storage solutions [12] - WDC holds a 1 (Strong Buy) rating on the Zacks Rank and has a VGM Score of A, indicating strong investment potential [13] - The stock has seen a 46.6% increase in the past four weeks, with positive earnings estimate revisions and an average earnings surprise of +6.8% [13][14]
Why Western Digital (WDC) is a Top Value Stock for the Long-Term
ZACKS· 2025-08-21 14:40
Group 1: Zacks Premium Overview - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens [1][2] - The service includes Zacks Style Scores, which are designed to help investors identify stocks with the best potential to outperform the market in the short term [2] Group 2: Zacks Style Scores - Zacks Style Scores categorize stocks into ratings of A, B, C, D, or F based on value, growth, and momentum characteristics, with higher scores indicating a better chance of outperforming the market [3] - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Cash Flow [3] - The Growth Score emphasizes a company's financial health and future growth potential by analyzing projected and historical earnings, sales, and cash flow [4] - The Momentum Score helps investors capitalize on price trends by evaluating recent price changes and earnings estimate revisions [5] - The VGM Score combines all three Style Scores to provide a comprehensive assessment of stocks based on value, growth, and momentum [6] Group 3: Zacks Rank and Stock Selection - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks historically achieving an average annual return of +23.75% since 1988 [7][9] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering the direction of earnings estimate revisions [9][10] Group 4: Company Spotlight - Western Digital - Western Digital Corporation is a leading developer and manufacturer of data storage devices, offering a range of HDD and Flash storage solutions for various consumer electronics [11] - The company holds a 1 (Strong Buy) rating on the Zacks Rank and has a VGM Score of B, with a Value Style Score of B due to a forward P/E ratio of 11.64, indicating attractive valuation metrics [12] - Recent upward revisions in earnings estimates by analysts have increased the Zacks Consensus Estimate for fiscal 2026 to $6.50 per share, with an average earnings surprise of +6.8% [12][13]