Western Digital Stock Has Fallen 53% Since June. I'd Consider a Small Position After Its Latest Report.
The hard drive maker's growth keeps speeding up. Has the stock's slide gone too far?
Western Digital (WDC) reported a staggering 55% increase in revenue for its fiscal first quarter of 2027, reaching $4.38 billion. This growth was accompanied by a 17% dividend boost and a 161% jump in non-GAAP earnings per share. However, the stock has plummeted 53% since June, trading at a mere fraction of its June 18 record close.
Analysts are concerned about the future of hard drive prices, which have been soaring. Western Digital's average price per terabyte rose 28% year over year, and shipments of storage capacity increased by 22%. Despite these positive results, the market's valuation of the company is relatively low, with a price-to-earnings ratio of just 15 times annualized earnings.
While some investors may see potential in Western Digital's long-term demand visibility and widening margins, the uncertainty surrounding hard drive pricing remains a significant risk.
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