Western Digital (WDC) Shows Strong Upward Trend: Is It a Good Time to Invest?

Understanding Momentum Investing

Momentum investing centers on tracking the direction of a stock's recent price movements, whether upward or downward. In a bullish scenario, investors purchase shares at elevated prices with the expectation of selling them at even higher values. The strategy relies on the belief that once a stock begins trending, it is likely to maintain that trajectory, enabling investors to capitalize on timely trades.

Evaluating Momentum: Metrics and Scores

Identifying momentum in stocks can be challenging, as opinions differ on which indicators best predict future performance. The Zacks Momentum Style Score, a component of the Zacks Style Scores, offers a structured approach to assessing momentum.

Western Digital (WDC): Momentum Analysis

Currently, Western Digital (WDC) holds a Momentum Style Score of B. Key factors in this score include price fluctuations and changes in earnings estimates.

Complementing Zacks Rank

The Style Scores are designed to work alongside the Zacks Rank, a stock rating system known for its strong performance record. Western Digital (WDC, -6.02%) presently boasts a Zacks Rank of #1 (Strong Buy). Research indicates that stocks with Zacks Rank #1 or #2 and Style Scores of "A" or "B" tend to outperform the market over the next month.

View the current list of Zacks #1 Rank Stocks here >>>

Is WDC Poised to Outperform?

To determine if WDC is a strong momentum candidate, let's review several momentum-related factors for this manufacturer of hard drives for both enterprise and personal use.

Short-term price movement is a useful indicator of momentum, revealing current market sentiment and whether buyers or sellers are dominating. Comparing a stock's performance to its industry can also highlight leading companies within a sector.

Over the past week, WDC shares have climbed 1.4%, outpacing the Zacks Computer-Storage Devices industry's 1.2% gain. On a monthly basis, WDC's price has risen 4.02%, compared to the industry's 0.72% increase.

Longer-term metrics are equally important. In the last quarter, Western Digital's stock surged 87%, and over the past year, it soared 480.04%. By contrast, the S&P 500 advanced only 2.99% in the last quarter and 17.96% over the year.

Trading volume is another crucial metric. WDC's average 20-day trading volume stands at 11,223,195 shares. Generally, rising prices accompanied by above-average volume signal bullish momentum, while falling prices on high volume suggest bearish sentiment.

Outlook for Earnings

The Zacks Momentum Style Score also factors in trends in earnings estimate revisions, which are central to the Zacks Rank methodology. Positive estimate revisions can indicate future growth, and WDC has recently shown favorable trends.

In the past two months, five full-year earnings estimates for WDC have been revised upward, with none moving lower. This has raised the consensus estimate from $7.66 to $8.96. For the next fiscal year, three estimates have increased, with no downward revisions during the same period.

Summary

Considering all these factors, WDC stands out as a Zacks Rank #1 (Strong Buy) stock with a Momentum Score of B. If you're seeking a stock with strong near-term growth potential, Western Digital deserves a spot on your watchlist.

Zacks Top 10 Stocks for 2026: Newly Announced

Act quickly to access Zacks' top 10 stock picks for 2026, selected by Director of Research Sheraz Mian. This portfolio has delivered remarkable and consistent returns.

From its launch in 2012 through November 2025, the Zacks Top 10 Stocks achieved a cumulative gain of +2,530.8%, far surpassing the S&P 500’s +570.3%.

Sheraz reviewed 4,400 companies covered by Zacks Rank and chose the best 10 for 2026. You can still be among the first to discover these high-potential stocks.

See New Top 10 Stocks >>

Get More Investment Insights

Looking for the latest stock recommendations from Zacks Investment Research? Download the report on the 7 Best Stocks for the Next 30 Days for free. Click to get this free report

Western Digital Corporation (WDC): Free Stock Analysis Report

This article was originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research