Market Features
6 Stocks That Could Double in the Next Year
#6 - Western Digital (WDC)
Western Digital(WDC) is a tech value stock if there ever was one after the share price drop. At around $25 a pop, it is bottoming out on its 52-week range ($23.06-$47.44). A double wouldn't even have to stray far outside this current 12-month range. The problem it faces is declining margins and product price compression. It is a beneficiary from Apple(AAPL) as the largest storage device product in Apple stores, and there is still the argument of endless storage demand. Shares just recently hit a low of $23.06 and the high of the year is $47.44. After closing at $24.16 on Tuesday, the double would take it back to the 52-week highs. Seagate(STX) and Hitachi(HIT) are tough competitors, but at six times June 2011 earnings and 5.25 times June 2012 earnings, mixed with a valuation of 1.25 times net tangible book value, the forward estimates leave a very cheap stock. Of course, for Western Digital to double, consumer electronics sales growth cannot continue to slide for much longer.|
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