Stock Analysis: Western Digital - Bullish or Bearish Sentiment on Wall Street?
Western Digital Corporation (WDC) Projected for Strong Growth in Fiscal 2026
Western Digital Corporation (WDC), a data storage solutions provider based in San Jose, California, has shown promising signs of growth, with analysts projecting an approximate 32.9% year-over-year EPS growth in fiscal 2026, reaching an EPS of $6.02.
The company's Q4 earnings results, announced on Jul. 30, exceeded expectations. WDC's Q4 revenue improved 30% year-over-year to $2.6 billion, and the adjusted gross margin expanded by 610 basis points year-over-year. In the trading session following the Q4 earnings announcement, WDC's shares surged 10.2%.
WDC offers a wide range of storage products, including Hard Disk Drives (HDDs), Solid State Drives (SSDs), flash storage devices, and enterprise systems. The company's strong performance can be attributed to the growing demand from the cloud and AI-driven storage markets.
Among the 22 analysts covering WDC's stock, the current consensus rating is a "Strong Buy". Notably, three months ago, 19 analysts suggested a "Strong Buy" rating for WDC. Ananda Baruah from Loop Capital Markets maintained a "Buy" rating on WDC with a price target of $92 on Aug. 5. The Street-high price target of $100 suggests an ambitious upside potential of 33.4%. The mean price target of $87.71 represents a 17% premium from WDC's current price levels.
The company's guidance and analyst ratings remain generally positive, with Wall Street maintaining a bullish stance on the stock. For Q1 fiscal 2026 specifically, WDC's EPS guidance is in the range of $1.54 to $1.69, which is significantly above the consensus estimate of $1.35, indicating strong near-term performance.
On a year-to-date (YTD) basis, WDC's stock is up 67.6%, compared to SPX's 8.6% rise. Over the past 52 weeks, WDC has soared 69.5%, while the broader S&P 500 Index has gained 20.1%. WDC has also outperformed the Technology Select Sector SPDR Fund over the past 52 weeks, with a 29.9% uptick compared to XLK's performance.
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References:
- Western Digital Corporation Q4 Earnings Preview
- Western Digital Corporation Q4 Earnings Recap
- Western Digital Corporation's Fiscal 2026 EPS Projections
- Western Digital Corporation's Fiscal 2025 Q4 Earnings Results
- Western Digital Corporation's Fiscal 2026 Q1 EPS Guidance
Investors might find interesting the projected growth for Western Digital Corporation (WDC) in the stock-market next fiscal year due to the increasing demand from the cloud and AI-driven storage markets. With an approximate 32.9% EPS growth projected in fiscal 2026, investors could consider investing in WDC to capitalize on this potential growth.
Furthermore, WDC's strong Q4 earnings, positive guidance, and bullish analyst ratings might indicate a continued growth trajectory in the stock-market for the company, making it an attractive option for finance-minded individuals seeking long-term investments in the technology sector.
