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Western Digital Corporation (WDC), headquartered in San Jose, California, develops, manufactures, and sells data storage devices and solutions. With a market cap of $22.3 billion, the company's products include hard drives, solid-state drives, and home entertainment and networking products.
Shares of this leading supplier of data storage solutions have underperformed the broader market over the past year. WDC has gained 9.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 21.8%. However, in 2025, WDC stock is up 7%, surpassing the SPX’s 2.7% rise on a YTD basis.
Narrowing the focus, WDC’s underperformance looks less pronounced compared to the Technology Select Sector SPDR Fund (XLK). The exchange-traded fund has gained about 14.2% over the past year. However, WDC’s single-digit gains on a YTD basis outshine the ETF’s marginal losses over the same time frame.
Increased competition from rivals and decreased demand for flash storage in consumer devices like personal computers and smartphones have contributed to WDC's weak performance.
On Jan. 29, WDC reported its Q2 results and its shares closed up more than 4% in the following trading session. Its adjusted EPS of $1.77 topped Wall Street expectations of $1.75. The company’s revenue was $4.29 billion, beating Wall Street forecasts of $4.25 billion. For Q3, WDC expects its adjusted EPS to range from $0.90 to $1.20, and expects revenue to be between $3.8 billion and $4 billion.
For the current fiscal year, ending in June, analysts expect WDC’s EPS to grow 544.6% to $4.89 on a diluted basis. The company’s earnings surprise history is mixed. It beat or matched the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 21 analysts covering WDC stock, the consensus is a “Strong Buy.” That’s based on 15 “Strong Buy” ratings, and six “Holds.”
This configuration is less bullish than two months ago, with 16 analysts suggesting a “Strong Buy.”
On Jan. 29, Evercore ISI analyst Amit Daryanani maintained a “Buy” rating on WDC with a price target of $80, implying a potential upside of 25.4% from current levels.
The mean price target of $83 represents a 30.1% premium to WDC’s current price levels. The Street-high price target of $100 suggests an ambitious upside potential of 56.7%.
