Seagate is the better trade, analyst says — but what's holding Western Digital back?
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Model output · Signal date 2026-10-16
Western Digital Corp (WDC) Stock Forecast Oct. 16, 2026
Analysis updated on Oct. 16, 2026 (UTC) · Alpha · vs marketSwitch to Total · Nasdaq
Rating · 90D
▼ Bearish
Exact rating locked
90-day forecast
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30-day forecast
Alpha
Rank in coverage
Bottom 35%
of 5171 stocks scored
Rank correlation · 90D
68.0%
Spearman, 357 dates
Market Cap
$128.51B
large-cap · #3 of 6 peers
Summary
Western Digital Corp (WDC) stock forecast summary
Our AI ranks Western Digital Corp outside the neutral middle of its coverage (a directional signal). Create a free account and follow it to see the exact price target.
Western Digital Corp is a large-cap company with a market capitalization of $128.51B. It ranks number 3 by market capitalization among the 6 Computer Storage Devices issuers in our coverage with a current forecast.
For WDC, the Spearman rank correlation between our 90-day forecasts and the returns that followed is 68.0%, measured on 357 forecast dates between 2022-07-29 and 2026-07-17 on this stock's own recent history. A rank correlation runs from -100% to +100%: it measures whether higher forecasts were followed by higher returns, and a value near zero or below means the model has shown little skill on this stock. On the 30-day forecasts the same correlation is 38.0%, measured on 400 forecast dates between 2022-07-29 and 2026-09-16. Across our coverage, the out-of-sample test on 4495 stocks from 2025-01-06 to 2026-07-07 produced a positive net return in 82.5% of rebalance periods (factor-neutral book, net of estimated costs). Full backtest report
Expected return relative to the market over the horizon: a positive alpha means the model expects the stock to beat the market, whatever the market does. Ratings: strong buy ≥ +1.8%, buy ≥ +0.2%, sell < -0.9%, strong sell < -1.2% (top 15%, next 20%, middle 30%, next 20%, bottom 15% of the 2026-10-16 signals)
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WDC price chart and AI forecast
Cross-section · 2026-10-16
How WDC ranks among 5171 stocks
90D Alpha forecasts of every company scored, cut into five relative ratings at the 15th, 35th, 65th and 85th percentiles (dashed lines).
Fundamentals · 2026-07-03
Western Digital Corp (WDC) fundamentals
Trailing twelve months. The industry median and the rank (1 = highest) are taken over the Computer Storage Devices peers listed below that report each metric.
Valuation & Market
| Metric | WDC | Rank |
|---|---|---|
| Market Cap | $128.51B | 3/6 |
| P/E Ratio | 14.68x | 5/5 |
| P/B Ratio | 14.50x | 4/5 |
| Dividend Yield | 0.14% | – |
| EPS | $24.28 | – |
| Book Value/Share | $24.59 | – |
| Revenue/Share | $35.83 | – |
| FCF/Share | $9.74 | – |
Profitability & Margins
| Metric | WDC | Rank |
|---|---|---|
| ROE | 106.3% | – |
| ROA | 68.0% | – |
| ROIC | 46.3% | – |
| Gross Margin | 48.9% | 4/6 |
| Operating Margin | 34.5% | 2/5 |
| Net Margin | 73.0% | – |
| EBT Margin | 76.7% | 1/5 |
| Tax Rate | 4.9% | – |
Financial Health
| Metric | WDC | Rank |
|---|---|---|
| Current Ratio | 1.33x | 3/5 |
| Quick Ratio | 0.97x | 4/5 |
| D/E Ratio | 0.56x | 4/5 |
| Financial Leverage | 1.56x | – |
| Interest Coverage | 62.5x | – |
| Working Capital | $1.39B | 2/5 |
Cash Flow
| Metric | WDC | Rank |
|---|---|---|
| Operating Cash Flow | $3.93B | 2/6 |
| Free Cash Flow | $3.51B | 2/5 |
| Capital Spending | -$418M | 4/5 |
| OCF Growth YoY | 132.3% | – |
| FCF Growth YoY | 174.5% | – |
| FCF/Sales | 27.2% | 2/5 |
| CapEx/Sales | 3.2% | 4/5 |
Operational Efficiency
| Metric | WDC | Rank |
|---|---|---|
| Asset Turnover | 0.93x | – |
| Receivables Turnover | 6.4x | – |
| Inventory Turnover | 4.4x | 4/5 |
| Fixed Assets Turnover | 5.2x | – |
| Days Sales Outstanding | 57 days | – |
| Days Inventory | 83 days | 2/5 |
| Payables Period | 98 days | – |
| Cash Conversion Cycle | 43 days | – |
Income Statement
| Metric | WDC | Rank |
|---|---|---|
| Total Revenue | $12.92B | 2/5 |
| Operating Income | $4.45B | 2/6 |
| Net Income | $9.42B | – |
| R&D Expense | $1.16B | 2/6 |
| SG&A Expense | $551M | 5/6 |
| Cost of Goods Sold | $6.61B | 2/6 |
Dividend & Shareholder Information
| Metric | WDC | Rank |
|---|---|---|
| Dividends Per Share | $0.48 | – |
| Payout Ratio | 2.0% | – |
| Shares Outstanding | 361M | – |
| Net Income Growth | 398.9% | – |
| EPS Growth | 374.2% | – |
Balance Sheet Highlights (USD millions)
| Total Current Assets | $5.63B | 40.6% of assets |
| Cash & Short-term Investments | $1.58B | 11.4% of assets |
| Accounts Receivable | $2.03B | 14.6% of assets |
| Inventory | $1.51B | 10.9% of assets |
| Total Liabilities | $5.00B | 36.1% of assets |
| Short-term Debt | $2.47B | 17.8% of assets |
Quarterly Financial Reports
WDC quarterly financials and insider trading
Industry Peers · Computer Storage Devices
Western Digital Corp (WDC) industry peers
Companies classified under the same SEC industry code as Western Digital Corp (Computer Storage Devices): 6 common-stock issuers with a forecast this week, one row per issuer, largest first. This is a classification match, not a curated list of competitors.
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Technology · Computer Storage Devices
News
Western Digital Corp (WDC) stock news
Western Digital stock under pressure as rising Asian production raises supply concerns
Western Digital Corp. WDC stock traded lower Tuesday as investors weighed a UBS price-forecast cut, broader weakness across ...
WDC, STX Stocks Headed For Third Straight Weekly Loss — Wells Fargo Slashes Targets But Sees Opportunity
Western Digital Corp. (WDC) and Seagate Technology Holdings Plc (STX) are on track to end their third consecutive week in the ...
FAQ
Western Digital Corp (WDC) stock forecast FAQ
What is the Western Digital Corp (WDC) stock forecast?
Our AI ranks Western Digital Corp outside the neutral middle of its coverage (a directional signal). Create a free account and follow it to see the exact price target.
How accurate are Western Digital Corp stock predictions?
For WDC, the Spearman rank correlation between our 90-day forecasts and the returns that followed is 68.0%, measured on 357 forecast dates between 2022-07-29 and 2026-07-17 on this stock's own recent history. A rank correlation runs from -100% to +100%: it measures whether higher forecasts were followed by higher returns, and a value near zero or below means the model has shown little skill on this stock. On the 30-day forecasts the same correlation is 38.0%, measured on 400 forecast dates between 2022-07-29 and 2026-09-16. Across our coverage, the out-of-sample test on 4495 stocks from 2025-01-06 to 2026-07-07 produced a positive net return in 82.5% of rebalance periods (factor-neutral book, net of estimated costs). Full backtest report
How often are Western Digital Corp forecasts updated?
Western Digital Corp forecasts are refreshed on trading days as the daily model run completes. The forecast on this page was produced on Oct. 16, 2026.
Which companies are Western Digital Corp's industry peers?
6 issuers in our coverage, WDC included, share the SEC industry code Computer Storage Devices. The largest are: Sandisk Corp (SNDK), Seagate Technology Holdings Plc (STX), Everpure, Inc. (P), Netapp, Inc. (NTAP), Quantum Corp /De/ (QMCO).
This analysis is generated automatically using our proprietary AI systems and should not be considered personalized investment advice. Past performance does not guarantee future results. Always conduct your own research and consider consulting a financial advisor before making investment decisions.