Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Western Digital Corporation as such a stock due to the following factors:
- WDC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $137.1 million.
- WDC is down 2.2% today from today's close.
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More details on WDC:
Western Digital Corporation, through its subsidiaries, develops, manufactures, and sells storage products and solutions that enable people to create, manage, experience, and preserve digital content. The stock currently has a dividend yield of 1.5%. WDC has a PE ratio of 16.3. Currently there are 7 analysts that rate Western Digital Corporation a buy, 2 analysts rate it a sell, and 7 rate it a hold.
The average volume for Western Digital Corporation has been 2.2 million shares per day over the past 30 days. Western Digital has a market cap of $15.3 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.41 and a short float of 2.6% with 2.74 days to cover. Shares are up 52.2% year to date as of the close of trading on Friday.
rates Western Digital Corporation as a
. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Although WDC's debt-to-equity ratio of 0.25 is very low, it is currently higher than that of the industry average. To add to this, WDC has a quick ratio of 1.54, which demonstrates the ability of the company to cover short-term liquidity needs.
- Compared to its closing price of one year ago, WDC's share price has jumped by 94.42%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- WESTERN DIGITAL CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, WESTERN DIGITAL CORP reported lower earnings of $3.90 versus $6.45 in the prior year. This year, the market expects an improvement in earnings ($8.11 versus $3.90).
- 36.27% is the gross profit margin for WESTERN DIGITAL CORP which we consider to be strong. Regardless of WDC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, WDC's net profit margin of -7.10% significantly underperformed when compared to the industry average.
- WDC, with its decline in revenue, underperformed when compared the industry average of 0.7%. Since the same quarter one year prior, revenues fell by 21.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full Western Digital Corporation Ratings Report.