Western Digital’s (WDC, $50.52) quarterly report may be concerning for investors
Computer hard drive maker, Western Digital, published quarterly report with estimate-missing earnings of $0.17 per share compared to the $3.63 per share a year ago. The company reported revenue of only $3.67 billion during the quarter, compared to last year’s $5.01 billion, missing estimates by 0.74%.
So the key question for the investors is: what’s next for the stock?
While there are no easy answers, investors may still watch out for the forthcoming quarterly earnings outlook which includes not only company’s current consensus earnings expectations, but also how these expectations have changed over time.
However, estimates revisions trends for the company have been unfavorable, with analysts changing the ratings to ‘sell’ for the stock. This could mean the shares may underperform in near future.
Investors also need to be mindful of the material impact of industry, as Intel (INTC) also provided a disappointing guidance last week as memory chip pricing has stayed in its doldrums so far in 2019.
While WDC is up more than 30% year-to-date, following the quarterly announcement it fell nearly 7% to $47 a share on Monday.
WDC sees MACD Histogram just turned negative
WDC saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on April 15, 2024. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 46 instances where the indicator turned negative. In of the 46 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for WDC moved out of overbought territory on April 12, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 31 similar instances where the indicator moved out of overbought territory. In of the 31 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on April 17, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on WDC as a result. In of 91 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
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 62 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 .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where WDC advanced for three days, in of 313 cases, the price rose further within the following month. The odds of a continued upward trend are .
WDC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 229 cases where WDC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding 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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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 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 83, placing this stock slightly better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable 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 Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly 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 (2.293) is normal, around the industry mean (5.979). P/E Ratio (15.244) is within average values for comparable stocks, (63.089). WDC's Projected Growth (PEG Ratio) (490.332) is very high in comparison to the industry average of (55.962). WDC has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.034). P/S Ratio (2.023) is also within normal values, averaging (11.854).
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General Information
a hard drive manufacturer
Industry ComputerPeripherals