Western Electronic (WDC) Soars 6.3%: Is Further more Upside Left in the Inventory?

Western Digital (WDC) shares rallied 6.3% in the last trading session to close at $76.42. This go can be attributable to notable volume with a better number of shares getting traded than in a standard session. This compares to the stock’s 4.6% attain around the past four months.

The enhance in share rate can be attributed to the continuous buzz bordering new cryptocurrency — Chia — which is expected to generate demand for tricky disk drives (HDDs) and strong condition drives (SSDs).

For each a Tom’s Hardware report, Chia is a storage-centered digital forex that utilizes tough disk and reliable point out storage for mining new coins.

Price tag and Consensus

This maker of challenging drives for enterprises and personalized personal computers is anticipated to article quarterly earnings of $1.37 per share in its impending report, which signifies a calendar year-above-year alter of +11.4%. Revenues are predicted to be $4.52 billion, up 5.4% from the 12 months-ago quarter.

Whilst earnings and income advancement anticipations are important in assessing the prospective strength in a stock, empirical exploration displays a robust correlation in between developments in earnings estimate revisions and around-phrase inventory value actions.

For Western Digital, the consensus EPS estimate for the quarter has been revised 41.5% better over the last 30 times to the latest stage. And a positive development in earnings estimate revision usually interprets into selling price appreciation. So, make certain to hold an eye on WDC likely forward to see if this latest leap can flip into additional strength down the highway.

The stock now carries a Zacks Rank 2 (Buy). You can see the total listing of present-day Zacks Rank #1 (Solid Purchase) stocks here >>>>

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The views and thoughts expressed herein are the views and views of the writer and do not essentially reflect those of Nasdaq, Inc.