$WDC Artificial Intelligence trade signals catching the big moves! Updated trailing stop now at 262 zone!

 

$WDC Artificial Intelligence trade signals catching the big moves! 

Updated trailing stop now at 262 zone! 

Very extended from the Cloud Chart zone and I do expect a consolidation at some point as this climatic rally needs to consolidate once the FOMO YOLO has cooled down! 

WDC needs to form a new base in a consolidation phase before the next rally attempt! 

But so far so good, AI caught the rallies just in time!

StarMine View on Western Digital (WDC)

High-quality momentum trade with improving fundamentals, but valuation is the brake

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1. Factor Models: One of the Strongest Setups in the Group

🟢 Bullish Signals (Very Strong)

• Price Momentum: 94
  Confirms WDC is in a powerful uptrend. This is institutional accumulation, not retail noise.

• Analyst Revisions: 96
  Analysts are still revising estimates higher, which supports continued upside as long as revisions persist.

• Earnings Quality: 100
  Best-in-class score. Earnings improvements are cash-backed, not driven by accruals or one-offs. This is especially important in a cyclical storage name.

• Smart Holdings: 88
  High conviction among sophisticated investors. Smart money is in, not fading the move.

• Credit Risk (Combined): 73
  Balance-sheet risk is under control. Leverage is not constraining equity upside at this stage of the cycle.

🔴 Bearish Signals (Clear and Consistent)

• Intrinsic Valuation: 23

• Relative Valuation: 14

• Short Interest: 21

• Insider Model: 14

• M&A Target Model: 7

Every bearish model is pointing to the same issue:
👉 WDC is no longer cheap, no longer early, and not a takeout story.

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2. Valuation: Still Expensive Even After Earnings Recovery

Trailing 12-Month Valuation (Stretched)

• P/E: 37.1 vs industry -1.6

• EV/EBITDA: 23.7 vs 5.0

• EV/Sales: 8.2 vs 0.9

• P/B: 13.0 vs 1.2 (Global rank 9 — very expensive)

These metrics reflect:

• A sharp recovery from losses

• A market already pricing in normalized margins

Forward Valuation (Improving, But Still Premium)

• Forward P/E: 23.1 vs 10.3

• Forward EV/EBITDA: 14.8 vs 7.0

• Forward EV/Sales: 6.1 vs 0.9

👉 Even on next-12-month numbers, WDC trades at ~2x industry multiples, meaning execution must stay clean.

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3. Estimates & Earnings Surprise Potential: Limited Near-Term Catalyst

March 2026 Quarter

• Mean EPS: 2.35

• Smart EPS: 2.35

• Predicted Surprise: +0.23%

• Revenue growth YoY: +10%

• EPS growth YoY: +22%

FY June 2026

• Mean EPS: 8.90

• Smart EPS: 8.90

• Predicted Surprise: +0.02%

• EPS growth YoY: +16%

• Revenue growth YoY: +5.5%

The key takeaway:

• Smart Estimates = Consensus

• Analysts broadly agree on the outlook

• Upside surprise probability is very low

This is not an earnings-beat setup — it’s an execution-validation setup.

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4. What StarMine Is Really Saying

WDC is a high-quality, late-cycle momentum stock.

• Momentum, revisions, and earnings quality are elite

• Smart money is positioned

• Balance-sheet risk is manageable

• But valuation already assumes a clean, sustained recovery

Where WDC works best

• Strong macro tape

• Stable hyperscaler demand

• HDD/NAND pricing holding firm

Where WDC struggles

• Any demand wobble

• Inventory digestion surprises

• Margin compression or cautious guidance

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🎯 Bottom Line

StarMine frames WDC as a “hold-your-nose momentum long,” not a valuation buy.

The trend can absolutely continue — but upside now depends more on market sentiment and cycle duration than on fresh fundamental discovery.