Is It Worth Investing in Western Digital (WDC) Based on Wall Street's Bullish Views?
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The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Western Digital (WDC).Western Digital currently has an average brokerage recommendation (ABR) of 1.48, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 21 brokerage firms. An ABR of 1.48 approximates between Strong Buy and Buy.Of the 21 recommendations that derive the current ABR, 16 are Strong Buy, representing 76.2% of all recommendations.Brokerage Recommendation Trends for WDCCheck price target & stock forecast for Western Digital here>>>While the ABR calls for buying Western Digital, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near -term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether.Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.Is WDC Worth Investing In?In terms of earnings estimate revisions for Western Digital, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $7.32.Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Western Digital. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Western Digital.Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
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Quelle: Zacks
Nachrichten zu Western Digital Corp.
Analysen zu Western Digital Corp.
Datum | Rating | Analyst | |
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08.08.2019 | Western Digital Equal Weight | Barclays Capital | |
01.08.2019 | Western Digital Market Perform | Cowen and Company, LLC | |
29.07.2019 | Western Digital Buy | Cascend Securities | |
02.07.2019 | Western Digital Sell | The Benchmark Company | |
26.06.2019 | Western Digital Buy | Craig Hallum |
Datum | Rating | Analyst | |
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29.07.2019 | Western Digital Buy | Cascend Securities | |
26.06.2019 | Western Digital Buy | Craig Hallum | |
16.04.2019 | Western Digital Buy | Deutsche Bank AG | |
22.02.2019 | Western Digital Buy | Cascend Securities | |
21.09.2018 | Western Digital Buy | The Benchmark Company |
Datum | Rating | Analyst | |
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08.08.2019 | Western Digital Equal Weight | Barclays Capital | |
01.08.2019 | Western Digital Market Perform | Cowen and Company, LLC | |
30.04.2019 | Western Digital Hold | Craig Hallum | |
25.01.2019 | Western Digital Market Perform | Cowen and Company, LLC | |
06.12.2018 | Western Digital Market Perform | Cowen and Company, LLC |
Datum | Rating | Analyst | |
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02.07.2019 | Western Digital Sell | The Benchmark Company | |
10.09.2015 | Western Digital Sell | UBS AG | |
03.11.2009 | SanDisk underperform | Wedbush Morgan Securities Inc. | |
22.10.2009 | SanDisk neues Kursziel | UBS AG | |
12.10.2009 | SanDisk sell | UBS AG |
Um die Übersicht zu verbessern, haben Sie die Möglichkeit, die Analysen für Western Digital Corp. nach folgenden Kriterien zu filtern.
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