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 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 $194.6 million.
- WDC is down 4.4% 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 1.8%. WDC has a PE ratio of 13.7. Currently there are 15 analysts that rate Western Digital a buy, 1 analyst rates it a sell, and 2 rate it a hold.
The average volume for Western Digital has been 1.8 million shares per day over the past 30 days. Western Digital has a market cap of $21.4 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.17 and a short float of 1.3% with 1.42 days to cover. Shares are up 9.3% year-to-date as of the close of trading on Monday.
rates Western Digital as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- Powered by its strong earnings growth of 217.85% and other important driving factors, this stock has surged by 29.21% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- WESTERN DIGITAL CORP reported significant earnings per share improvement 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 year. 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 ($8.27 versus $6.69).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Computers & Peripherals industry. The net income increased by 219.6% when compared to the same quarter one year prior, rising from -$265.00 million to $317.00 million.
- Although WDC's debt-to-equity ratio of 0.28 is very low, it is currently higher than that of the industry average. To add to this, WDC has a quick ratio of 1.84, which demonstrates the ability of the company to cover short-term liquidity needs.
- You can view the full Western Digital Ratings Report.