Western Digital (WDC) Outperforms Market Returns: Key Points to Note
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 12 2025
0mins
Should l Buy WDC?
Source: NASDAQ.COM
Stock Performance: Western Digital (WDC) closed at $187.00, up 2.78%, outperforming the S&P 500's 0.21% gain, with a notable 9.54% increase over the past month.
Earnings Forecast: The upcoming earnings report is expected to show an EPS of $1.92, an 8.47% increase year-over-year, but a 32% revenue decline to $2.91 billion compared to the previous year.
Zacks Rank and Valuation: WDC holds a Zacks Rank of #1 (Strong Buy) with a Forward P/E ratio of 23.86, higher than the industry average of 17.34, and a PEG ratio of 1.05, indicating favorable growth expectations.
Investment Insights: Zacks Investment Research highlights the importance of analyst estimate revisions for stock performance, and promotes a selection of stocks expected to see significant gains in the near future.
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Analyst Views on WDC
Wall Street analysts forecast WDC stock price to fall
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 284.100
Low
135.00
Averages
189.74
High
250.00
Current: 284.100
Low
135.00
Averages
189.74
High
250.00
About WDC
Western Digital Corporation is a developer, manufacturer and provider of data storage devices and solutions. It delivers hard disk drives (HDD) solutions for everyone from students, gamers, and home offices to enterprises and public clouds. The Company manufactures, markets, and sells data storage devices and solutions in the United States and in foreign countries through its sales personnel, dealers, distributors, retailers, and subsidiaries. Its portfolio of technology and products addresses multiple end markets: Cloud, Client, and Consumer. Cloud is comprised primarily of products for public or private cloud environments and end customers. Through the Client end market, it provides its original equipment manufacturer (OEM) and channel customers a range of hard drive solutions across personal computer, mobile, gaming, automotive, virtual reality headsets, at-home entertainment, and industrial spaces. The Consumer end market offers a range of retail and other end-user products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Intensified Market Competition: The rapid advancement of AI technology raises questions about the value of enterprise software, leading investors to adopt a pessimistic view on the future of traditional software companies, especially in labor-intensive areas that may face workforce reductions due to AI adoption.
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- ServiceNow Market Opportunity: Despite a 50% drop in stock price over the past year, ServiceNow's dominant position in workflow software and partnerships with AI companies suggest it is undervalued at current prices, with significant growth potential anticipated in 2026.
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- Live Webcast: The management presentation will be available via live webcast on WD's Investor Relations website, allowing global investors to access the latest company updates in real-time, thereby enhancing transparency and investor confidence.
- Company Background: With over 55 years in the storage infrastructure sector, Western Digital is committed to providing reliable storage solutions for the AI-driven data economy, showcasing its leadership position in the industry.
- Partnerships: The company has established partnerships with leading hyperscalers and enterprises globally, offering innovative storage platforms that further solidify its competitive advantage in the market.
See More
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- Market Pullback Analysis: SanDisk's stock has pulled back 14% from its February highs, yet it trades at a forward P/E of 15 times, indicating that its valuation remains attractive and may present a buying opportunity for investors.
- Industry Cycle Shift: As a leading producer of NAND storage devices, SanDisk is at the beginning of what appears to be a long-lasting supercycle, driven by surging demand for high-performance solid-state drives from AI data centers, suggesting a positive market outlook.
- Price Surge Drivers: With a NAND shortage, SanDisk's revenue jumped 61% last quarter, while gross margins expanded from 32.3% to 50.9%, significantly enhancing profitability and laying a solid foundation for future growth.
- Cautious Investment Advice: Despite SanDisk's strong market performance, the Motley Fool Stock Advisor analyst team did not include it in their current list of top investment stocks, prompting investors to carefully assess its investment value.
See More
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- Tech Sector Decline: The iShares Tech-Expanded Software Sector ETF (NYSE:IGV) fell 3.7%, revisiting lows from last week, indicating heightened sensitivity to AI disruption risks following Cisco's outlook.
- Small Caps Underperform: The Nasdaq 100 dropped 1.7%, while both the S&P 500 and Dow Jones Industrial Average lost 1.2%, with the Russell 2000 small-cap index sliding 2.4%, reflecting a cautious market sentiment.
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