GET DAILY SIGNALSWestern Digital is Down Over 55% in the Last 8 Months
Hard drive manufacturer Western Digital (Nasdaq: WDC) has been trending lower for over eight months now and the stock has formed a trend channel around the cycles. The upper rail of the channel is in close proximity to the stock’s 50-day moving average and that could make it even more difficult for the stock to break out of the down trend.
The stock peaked back at $104.80 back on March 16 before falling to a recent low of $40.58. That is a drop of 61.3% from the high to the low. For you Fibonacci fans, that is close to the Fibonacci retracement of 61.8%.
The stock went through a similar drop from December ’14 through May ’16. During the selloff the stock dropped from $102.53 to $32.59. After hitting that low in 2016, the stock rallied to the all-time in March.
The fundamentals are a bit of a mixed picture for Western Digital. Earnings have been declining recently with the most recent quarter showing a drop of 15%. Analysts expect the earnings to decline by 51% for the year as a whole.
On the other hand, the profitability measurements are really good. The return on equity is currently at 39.4% and the profit margin is at 23.2%.
It’s hard to tell how much further the stock could fall. The low from 2016 could come in as support, but that is another 28.4% drop from where the stock closed on Thursday.
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WDC sees its 50-day moving average cross bearishly below its 200-day moving average
The 50-day moving average for WDC moved below the 200-day moving average on November 02, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on November 02, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on WDC as a result. In 54 of 76 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 71%.
The Moving Average Convergence Divergence Histogram (MACD) for WDC turned negative on November 04, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 50 similar instances when the indicator turned negative. In 34 of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at 68%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where WDC declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 66%.
The Aroon Indicator for WDC entered a downward trend on November 10, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where WDC's RSI Oscillator exited the oversold zone, 23 of 27 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 85%.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 5 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +11.31% 3-day Advance, the price is estimated to grow further. Considering data from situations where WDC advanced for three days, in 290 of 356 cases, the price rose further within the following month. The odds of a continued upward trend are 81%.
WDC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 12 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 64 (best 1 - 100 worst), indicating steady price growth. WDC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 65 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock slightly better than average.
The Tickeron Valuation Rating of 67 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (10.729) is normal, around the industry mean (-6.197). P/E Ratio (9.799) is within average values for comparable stocks, (-3.670). Projected Growth (PEG Ratio) (0.863) is also within normal values, averaging (23.994). Dividend Yield (0.002) settles around the average of (0.012) among similar stocks. P/S Ratio (12.361) is also within normal values, averaging (51.774).
The Tickeron PE Growth Rating for this company is 93 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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General Information
a hard drive manufacturer
Industry ComputerProcessingHardware
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