Western 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's Indicator enters downward trend
The Aroon Indicator for WDC entered a downward trend on August 17, 2026. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 99 similar instances where the Aroon Indicator formed such a pattern. In of the 99 cases the stock moved lower. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
WDC moved below its 50-day moving average on July 24, 2026 date and that indicates a change from an upward trend to a downward trend.
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 of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 50 cases where WDC's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on August 20, 2026. You may want to consider a long position or call options on WDC as a result. In of 76 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for WDC just turned positive on August 14, 2026. Looking at past instances where WDC's MACD turned positive, the stock continued to rise in of 49 cases over the following month. The odds of a continued upward trend are .
Following a +1 3-day Advance, the price is estimated to grow further. Considering data from situations where WDC advanced for three days, in of 349 cases, the price rose further within the following month. The odds of a continued upward trend are .
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is (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 (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 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 86, placing this stock slightly better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent 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.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued 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 (18.692) is normal, around the industry mean (8.802). P/E Ratio (17.067) is within average values for comparable stocks, (228.643). Projected Growth (PEG Ratio) (0.875) is also within normal values, averaging (4.636). Dividend Yield (0.001) settles around the average of (0.016) among similar stocks. P/S Ratio (13.624) is also within normal values, averaging (89.582).
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General Information
a hard drive manufacturer
Industry ComputerProcessingHardware
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