Western Digital Corporation (WDC) Traders Should Start Listening to Analysts

Western Digital Corporation (WDC) shares saw a recent bid of $90.06 and 5.53M shares have exchanged hands in the recent trading session, yielding a 2.31% gain over the past week. The stock price decreased -1.35% or $1.23 versus $91.29 at the end of the prior session. This change led market cap to move at $26.01B, putting the price -2.40% below the 52-week high and 116.28% above the 52-week low. The company’s stock has a normal trading capacity of 4.16M shares while the relative volume is 1.33.

To stay one step ahead we extended our research by comparing different price targets. The stock notched a 12-month high of $113.13 while $142.00 target is by far the most aggressive out of analysts who are currently evaluating the company, $28.87 higher than the next highest 52-week price estimate. The lowest 12-month price target for the shares is $84.00, which would be decrease of about -7% of its current value. The mean target of $115.00 should be compared with the price when the stock was languishing around $41.64 a share. And it remains to be seen which target price WDC can achieve without sacrificing much as the company is holding a 93.51% gain for the past twelve months.

By historical standards, Western Digital Corporation remains a cheap stock. The company’s current price-earnings ratio amounts to  times earnings, above the average P/E ratio of 13.85 times earnings. For now, Western Digital Corporation is the toast of Wall Street as its ABR stands at 2.00 with 11 out of 31 analysts rating the stock a buy. Over the short term, some market observers may have noticed that Western Digital Corporation has a 1.70% short float with 15 days to cover. It becomes significant when you consider how many shares are shorted versus the average daily volume, means how many days to cover those short shares at that volume. Western Digital Corporation has far performed well this year, with the share price up 32.54% since January. Over the past 2 quarters, the stock is up 44.63%, compared with a gain of nearly 14.99% for 3 months and about 2.69% for the past 30 days.

Last time, the company shocked Wall Street by reporting EPS of $2.39, smashing the consensus of $2.14 per share. Revenue for the quarter also killed consensus, coming in at $4.65B, compared to the consensus of 4.58B. Nonetheless, from here on out, earnings per share forecasts for the current quarter are $3.40. The company is expected to report EPS as high as $3.81 and as low as $2.66 per share. Similarly, full-year EPS forecasts have ranged between $8.47 and $9.07. The mean EPS estimate is $8.87. On the other side, sales forecasts for the current quarter are $5.33B. The stock is expected to report revenue as high as $5.74B and as low as $4.99B per share. Similarly, full-year sales forecasts have ranged between $18.95B and $19.1B. The mean revenue estimate is $19.06B.

Over the last 5 years, Western Digital Corporation has averaged a -20.20% YoY EPS growth rate and a 6.40% revenue growth rate. Analysts are expecting EPS growth rates to be at -83.80% this quarter and EPS estimate for next year reflect 34.00% growth rate.

Sell-side analysts also have something to say about this company. Jefferies had a markedly different take on 01/05/2017, proposing that Western Digital Corporation is now considered Hold versus prior Buy rating. Morgan Stanley raised its rating on Western Digital Corporation to Overweight on 28/04/2017 in a reversal from its prior Equal-Weight rating. BofA/Merrill raised its rating on Western Digital Corporation to Buy on 28/04/2017 in a reversal from its prior Neutral rating. The Benchmark Company analysts stated on 28/04/2017 that they maintained their Buy rating.

Western Digital Corporation (WDC) Traders Should Start Listening to Analysts was last modified: June 1st, 2017 by Edward Walker
Stock News Magazine
Now there is no need to go through dozens of information portals, collecting a bit of the picture of the day. All the latest news from the region, the country, the world, you can find on the newsline of our site. The loudest incidents, interesting events, current opinions, people in the spotlight and much more – we gathered for you in one place.