Western Digital Corporation (WDC) Soars to 52-Week High, Time to Cash Out?

A strong stock as of late has been Western Digital (WDC). Shares have been marching higher, with the stock up 14.8% over the past month. The stock hit a new 52-week high of $79.84 in the previous session. Western Digital has gained 32.9% since the start of the year compared to the 12.6% gain for the Zacks Computer and Technology sector and the 13.1% return for the Zacks Computer- Storage Devices industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 30, 2025, Western Digital reported EPS of $1.66 versus consensus estimate of $1.48.For the current fiscal year, Western Digital is expected to post earnings of $6.5 per share on $10.92 in revenues. This represents a 31.85% change in EPS on a -17.76% change in revenues. For the next fiscal year, the company is expected to earn $7.11 per share on $11.28 in revenues. This represents a year-over-year change of 9.38% and 3.32%, respectively.Valuation MetricsWestern Digital may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.Western Digital has a Value Score of B. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 12.2X current fiscal year EPS estimates, which is not in-line with the peer industry average of 14.4X. On a trailing cash flow basis, the stock currently trades at 13.1X versus its peer group's average of 15.3X. Additionally, the stock has a PEG ratio of 0.88. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Western Digital currently has a Zacks Rank of #1 (Strong Buy) thanks to a solid earnings estimate revision trend.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Western Digital passes the test. Thus, it seems as though Western Digital shares could still be poised for more gains ahead.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Western Digital Corporation (WDC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks