Western Digital Corporation (WDC): Today's Featured Technology Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Western Digital Corporation ( WDC) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day down 0.4%. By the end of trading, Western Digital Corporation fell 85 cents (-2.4%) to $34.43 on heavy volume. Throughout the day, 11.4 million shares of Western Digital Corporation exchanged hands as compared to its average daily volume of 4.3 million shares. The stock ranged in price between $32.25-$35.15 after having opened the day at $32.50 as compared to the previous trading day's close of $35.28. Other companies within the Technology sector that declined today were: SatCon Technology Corporation ( SATC), down 30.6%, A123 Systems ( AONE), down 14.7%, B Communications ( BCOM), down 14%, and Local ( LOCM), down 10.4%.
  • ACTIVE STOCK TRADERS: Get full access to Jim Cramer's thoughts for less than $3/week - sometimes before he says them on TV! Start with a 14-Day Free Trial.

Western Digital Corporation, through its subsidiaries, engages in the development, manufacture, and sale of storage products that enable people to create, manage, experience, and preserve digital content. The company principally offers hard drives comprising 3.5-inch and 2.5-inch form factors. Western Digital Corporation has a market cap of $8.55 billion and is part of the computer hardware industry. The company has a P/E ratio of 5.3, equal to the average computer hardware industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 12.7% year to date as of the close of trading on Monday. Currently there are eight analysts that rate Western Digital Corporation a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Western Digital Corporation as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the positive front, BOS Better Online Solutions ( BOSC), up 20.7%, Trio-Tech International ( TRT), up 14.8%, Spire Corporation ( SPIR), up 14%, and ARM Holdings ( ARMH), up 10.9%, were all gainers within the technology sector with Autodesk ( ADSK) being today's featured technology sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free download now.
null

If you liked this article you might like

Jim Cramer Reveals Why He Sold Western Digital for His Charitable Trust

Gold, Google, SEC Hack - 5 Things You Must Know Before the Market Opens Thursday

Western Digital Moves to Block Toshiba's Deal With Bain Group

Toshiba Agrees to $18 Billion Deal to Sell Chip Unit to Bain Capital Group

Why Apple Is Increasingly Investing in Its Suppliers, Including Possibly Toshiba