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2 of the Hottest Tech Stocks to Buy on the Dip: MU, WDC
ZACKSยท 2025-11-17 21:56
Core Viewpoint - Micron Technology (MU) and Western Digital (WDC) are highlighted as top tech stocks to buy on the dip, driven by high demand for memory and data storage solutions amid rising trade tensions and a bullish market outlook [1][2]. Group 1: Stock Performance - Micron's stock has increased over +200% year to date, while Western Digital shares have also shown significant gains [2]. - Both companies have been identified as buy-the-dip targets due to their strong performance and market demand [1][3]. Group 2: Earnings Estimates - Micron's fiscal 2026 EPS estimates have risen 23% from $13.13 to $16.22 in the last 60 days, with FY27 estimates climbing 17% from $15.88 to $18.57 [5]. - Micron's annual earnings are projected to increase by 95% in FY26, with an additional 14% growth expected in FY27 [5]. - Western Digital's EPS estimates for FY26 have increased by 13% in the last 60 days, with FY27 estimates up 37%, projecting nearly 50% growth in FY26 and another 33% increase to $9.84 per share in FY27 [6][8]. Group 3: Valuation Metrics - Despite significant year-to-date rallies, MU and WDC are trading at attractive P/E valuations, offering discounts compared to the S&P 500's 25X forward earnings multiple [9][10]. Group 4: Zacks Rank - Both Micron Technology and Western Digital have maintained spots on the Zacks Rank 1 (Strong Buy) list, with MU up +115% and WDC up +25% since their respective rankings [11].