Western Digital Corp. (NASDAQ:WDC) stock rose about 3% in Monday’s premarket trading as investors returned to higher-risk technology stocks. Nasdaq futures climbed 1.43%, while S&P 500 futures gained 0.89%.
Other storage and semiconductor names, including Seagate Technology Holdings plc (NASDAQ:STX), Micron Technology Inc. (NASDAQ:MU) and Sandisk Corp. (NASDAQ:SNDK), also traded higher in the premarket as the broader technology sector advanced.
Western Digital’s gains appeared to track the broader market rally rather than company-specific news. The stock is rebounding after pulling back from its June high as investors rotate back into technology shares ahead of the opening bell.
Technical Analysis
Western Digital remains in a long-term uptrend. The stock trades 18.7% above its 100-day simple moving average and 66.3% above its 200-day simple moving average.
However, short-term momentum remains softer. The stock sits 3.3% below its 20-day simple moving average and 4.1% below its 50-day simple moving average.
The relative strength index stands at 45.41, indicating neutral momentum. The reading suggests selling pressure has eased, but buyers have not yet regained full control.
The 20-day simple moving average remains below the 50-day average, reflecting a short-term bearish trend. Even so, the 50-day average remains above the 200-day average, keeping the longer-term outlook positive.
A move above $602.50 could strengthen bullish momentum. On the downside, $510.50 remains an important support level where buyers have previously stepped in.
Earnings Outlook
Western Digital is scheduled to report quarterly results on Aug. 5.
Wall Street expects earnings of $3.27 per share, up from $1.66 a year earlier. Revenue is projected to increase to $3.69 billion from $2.60 billion.
The stock trades at 31.1 times earnings and carries a consensus Buy rating with an average analyst price forecast of $577.63. Recent analyst actions include:
- Citigroup: Buy, price forecast raised to $800 on July 13.
- Wells Fargo: Overweight, price forecast raised to $730 on July 10.
- Susquehanna: Neutral, price forecast raised to $500 on July 8.
Benzinga Edge Rankings
Western Digital scores highly for Momentum (99.68) and Quality (96.99), reflecting strong price performance and fundamentals.
Its Value score stands at 7.1, while its Growth score is weaker at 14.53, suggesting investors are pricing in future improvement ahead of reported results.
ETF Exposure
Western Digital is a significant holding in several exchange-traded funds, including:
- Castellan Targeted Equity ETF (NASDAQ:CTEF): 6.72%
- ARS Focused Opportunities Strategy ETF (NASDAQ:AFOS): 5.54%
- NestYield Visionary ETF (NASDAQ:EGGQ): 6.00%
Strong inflows or outflows in these funds can influence demand for Western Digital shares.
Price Action
WDC Stock Price Activity: Western Digital shares were up 3.05% at $535.63 during premarket trading on Monday, according to Benzinga Pro data.
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