|Bid||87.8700 x 900|
|Ask||87.9300 x 800|
|Day's range||86.7600 - 87.9200|
|52-week range||75.9600 - 106.9600|
|PE ratio (TTM)||68.05|
|Earnings date||25 Jul 2018 - 30 Jul 2018|
|Forward dividend & yield||2.00 (2.31%)|
|1y target est||117.54|
Let's see if Western Digital Corporation (WDC) stock is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks.
Things are looking up for a whole basket of IT companies, according to a report today by Moody’s Investors Services analyst Stephen Sohn and his colleagues. Companies from Microsoft (MSFT) to Adobe Systems (ADBE) to Oracle (ORCL) to NetApp (NTAP) to Salesforce.com (CRM) are set to benefit from rising operating profit that’s vastly outpacing global GDP growth, write the authors. Moody’s upgraded its outlook on “diversified IT” as a group to “Positive” from what had been “stable” before, citing potential for Ebitda (earnings before interest, taxes, depreciation, and amortization) to rise by “about 7.5%” this year, versus the global GDP growth projection of 3.4% in 2018 and 3.2% in 2019.
NetApp (NTAP) stock has returned 73% in the last 12 months, 0.5% in the last month, and -2.7% in the last five days. NetApp stock rose 36% in 2016 and 60% in 2017. Since the start of 2018, it’s risen almost 26%.
The Zacks Analyst Blog Highlights: Western Digital, Magna International, Nucor, Sony and Caterpillar
NetApp (NTAP) has a dividend yield of 1.1% and pays a quarterly dividend of $0.20 per share, leading to an annualized payout of $0.80 per share. NetApp’s dividend payout ratio is 27.4%, and the company has increased its dividend for the last four consecutive years.
HP Inc. (HPQ) stock has returned 17.0% in the last 12 months, 3.7% in the last month, and 3.6% in the last five days. HP stock rose 30.0% in 2016 and 46.0% in 2017. Since the start of 2018, HP stock has risen ~7.5%. Peers IBM (IBM), Western Digital (WDC), and Seagate Technology (STX) have returned -4.0%, -10.0%, and 33.0%, respectively, in the last 12 months.
The S&P 500’s top gainers on May 16 were: Macy’s (M) gained 10.8%. Under Armour (UAA) gained 8.7%. Under Armour Inc Class C (UA) gained 6.9%. Western Digital (WDC) gained 4.9%. Assurant (AIZ) gained 4.7%. Macy’s
Driven by several robust quarters of revenue growth, HP Inc. (HPQ) ended fiscal 2017 with free cash flow of $3.3 billion. The firm returned 69.0% of free cash flow ($2.3 billion) to shareholders via share repurchases and dividends in fiscal 2017.
Western Digital (WDC) is seeing solid earnings estimate revision activity and is a great company from a Zacks Industry Rank perspective.
The deluge of 13-F’s yesterday revealed huge (and some new) stakes of Micron (MU) by very smart tech investors. Coatue management revealed a 14.5 million share stake. Appaloosa and Duquesne upped their positions in the memory maker as well. To be fair Millenium, Point72 Hong Kong, and Bluecrest reduced their positions, but we mainly heard about the buys. Also remember that in January and February, Micron’s stock spent a lot of time in the low-to-mid $40’s. Then today, RBC analyst Amit Daryanani launched on the name with a bullish $80 price target, an outperform, and a thesis that investors are too negative on the memory cycle. I have know Amit for years and he is an excellent analyst – full stop. There is no but to that. He is smart, thoughtful, and taught me a lot about stocks I was…unwise about. He points out that the memory market is down from 15 players to 3, an excellent point for the long-term prospects of Micron. I remember visiting some of the 12 companies that have gone the way of the dodo in the early 2000’s – it was depressing. At any rate, Amit knows of what he speaks.
Previously in this series, we learned that analysts expect HP Inc.’s (HPQ) revenues to rise ~9.5% YoY (year-over-year) in the fiscal second quarter. The company’s earnings per share are expected to rise ~20.0% in the quarter.
Shares of hard drive and NAND flash chip maker Western Digital (WDC) are up $1.84, or 2.3%, at $82.96, after the company this morning said it priced $2.5 billion of term loans, and said it will buy back $1 billion of its stock, half of that this quarter. Micron is up 76 cents, or 1.4%, at $53.76.
BEIJING (Reuters) - Chinese Vice President Wang Qishan said on Tuesday the United States and China should increase communication and resolve differences through negotiations, Chinese state TV reported, ...
Western Digital Corp. (WDC) (“Western Digital” or the “company”) today announced that it has successfully priced $2.455 billion of new U.S. dollar-denominated term B-4 loans at an interest rate of LIBOR + 1.75%, which priced 25 basis points lower than its previous term B-3 loans issued in November 2017. In connection with this transaction, Western Digital settled the previous U.S. dollar-denominated term B-3 loans with the proceeds of this new loan. The new term loans have the same remaining tenor as the previous U.S. dollar-denominated term B loans and mature on April 29, 2023.
Western Digital (WDC) stock is barely changed from two years ago, even though earnings per share have tripled over that time. Time to buy shares, writes JPMorgan analyst Harlan Sur in a recent report initiating coverage. The stock’s stallout in recent years is owed to a one overarching concern: hard disk drives are rapidly losing market share to solid-state drives, which boast much faster speeds and lower power consumption.
Shares of Western Digital Corp. are up 2.1% in premarket trading Monday after J.P. Morgan analysts initiated coverage of the stock with an overweight rating. "Although underappreciated in our view, with a diversified storage portfolio (end-markets, applications and products), the company is set to drive stable revenue growth and margin profile with strong free cash flow generation," wrote the analysts, led by Harlan Sur. The team at J.P. Morgan believes that Western Digital will look for "small tuck-in acquisitions" and devote more of its free cash flow to capital return.
Strong first-quarter 2018 earnings and strong fundamentals of the U.S. economy suggest that the recent volatility may be transitory and the markets will continue their uptrend.