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.
Trade-Ideas LLC identified
) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Western Digital 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 $195.8 million.
- WDC is up 2% today from today's close.
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More details on WDC:
Western Digital Corporation, through its subsidiaries, develops, manufactures, and sells data storage solutions that enable consumers, businesses, governments, and other organizations to create, manage, experience, and preserve digital content. The stock currently has a dividend yield of 2.6%. WDC has a PE ratio of 12. Currently there are 12 analysts that rate Western Digital a buy, 1 analyst rates it a sell, and 4 rate it a hold.
The average volume for Western Digital has been 2.1 million shares per day over the past 30 days. Western Digital has a market cap of $17.7 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.83 and a short float of 2.5% with 2.39 days to cover. Shares are down 29.8% year-to-date as of the close of trading on Tuesday.
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rates Western Digital as a
. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- WESTERN DIGITAL CORP has improved earnings per share by 5.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, WESTERN DIGITAL CORP increased its bottom line by earning $6.69 versus $3.90 in the prior year. This year, the market expects an improvement in earnings ($7.74 versus $6.69).
- 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 2.09, which demonstrates the ability of the company to cover short-term liquidity needs.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Computers & Peripherals industry and the overall market on the basis of return on equity, WESTERN DIGITAL CORP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- 37.10% 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 10.81% is significantly lower than the industry average.
- You can view the full Western Digital Ratings Report.