Has Western Digital's Stock Performance Surpassed That of the Dow Jones Industrial Average?
Western Digital Corporation CEO Drives 52-Week High Amid Strong Q4 Performance
Western Digital Corporation (WDC) has reached a new 52-week high of $103.98 in the latest trading session, driven by a strong Q4 performance under the leadership of CEO Irving Tan. This surge comes after a quarter that has impressed investors and analysts alike.
In the same period, the Dow Jones Industrial Average recorded a return of 9.9%. However, WDC outperformed the index, with its shares rallying 79.6% over the past three months.
The company's Q4 earnings beat expectations, resulting in a 10.2% increase in share price on Jul. 30. WDC's overall revenue for Q4 advanced 30% year-over-year to $2.6 billion, exceeding analyst estimates by 6.5%.
One of the key drivers of WDC's success has been its improved financial metrics. The adjusted gross margin expanded by 610 basis points in Q4, while the adjusted operating income soared 147.3% from the prior-year quarter to $732 million. The adjusted EPS for Q4 was $1.66, handily exceeding the consensus estimates of $1.48.
As a large-cap stock, WDC offers a variety of data storage devices and solutions based on hard disk drive (HDD) technology, competing in the price-sensitive market. The company's product portfolio includes internal HDDs, data center drives, data center platforms, external drives, portable drives, and NAS for home and office.
With a market cap of $35.7 billion, WDC has a consensus rating of 'Strong Buy' from the 24 analysts covering it. The mean price target for WDC is $92.48, while its Street-high price target of $123 suggests a 19.3% premium to its current price levels.
It's important to note that all information and data in this article are for informational purposes only. For more detailed information, please view the Disclosure Policy here. As of the publication date, Neharika Jain did not have positions in any of the securities mentioned in the article.
WDC has been trading above its 200-day moving average since mid-May and above its 50-day moving average since late April. Over the past 52 weeks, WDC has skyrocketed 114.5%, outperforming the Dow Jones Industrial Average's return of 7.6%.
However, when compared to Seagate Technology Holdings plc (STX) on a year-to-date basis, WDC has lagged behind with a return of 108.1%, while STX has seen a surge of 144.6%.
Despite this, WDC's strong performance and positive outlook suggest that it remains a compelling investment opportunity for those seeking exposure to the price-sensitive data storage sector.
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