WDC · NASDAQ · STOCK
Western Digital (WDC) Stock Analysis
$397.33
52W $112.52 – $799.87
63/100
$136.94B
14.6
2.17
Is WDC Bullish or Bearish?
Bullish.
Innellis AI committee rates Western Digital (WDC) Buy with a composite score of 63/100
, based on 6 analysts with 50% agreement.
Last updated October 10, 2026.
What Would Change This View
- Upgrade to Strong Buy
- Requires a committee score of 75.0 — +12.00 from today. Applies on the first day at or above the line; upgrades are never dampened.
- Downgrade to Watch
- Requires the score to fall below 55.0 — -8.00 from today. The band boundary is 60.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.
Executive Summary
The committee is genuinely divided. Growth Analyst sees a compelling case — revenue growing 35.7% yoy -- genuine top-line momentum. Portfolio Manager remains cautious — sector concentration is already high (hhi 2796.97). This disagreement is itself the signal — the setup is not clean in either direction.
Bull & Bear Case
Bull Case
- P/E of 14.6 is inexpensive for the broad market — Value
- ROE of 117.8% shows genuine earnings power backing the valuation — Value
- Revenue growing 35.7% YoY -- genuine top-line momentum — Growth
- EPS growing 363.8% YoY — Growth
- 5 consecutive earnings beats -- consistent execution — Growth
- Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
Bear Case
- Price-to-book of 22.5x prices in significant intangible value — Value
- MACD histogram negative -- bearish momentum — Technical
- Bollinger bandwidth of 22.3% signals elevated volatility — Risk
Both cases are generated from quantitative data signals, not qualitative or
forward-looking judgement. They summarise what the numbers say today.
Price History (6M)
AI Investment Committee
Committee Consensus
As of October 10, 2026
Overall Committee Score
63/100
Agreement
50%
Analysts
6
Conviction
Contested
Sector Rank
Top 16%
of 287 Technology peers
Value Analyst
bullish
64
/ 100 · High confidence
Classic value case: cheap on multiples with earnings power to back it up
+ P/E of 14.6 is inexpensive for the broad market
− Price-to-book of 22.5x prices in significant intangible value
Growth Analyst
bullish
84
/ 100 · High confidence
Strong, accelerating growth with consistent execution
+ Revenue growing 35.7% YoY -- genuine top-line momentum
Technical Analyst
neutral
48
/ 100 · High confidence
Mixed or range-bound price action
− MACD histogram negative -- bearish momentum
Risk Analyst
neutral
58
/ 100 · Moderate confidence
Moderate risk -- no single red flag, but nothing that clearly de-risks the position either
+ Low leverage (debt-to-equity 0.12) -- balance sheet can absorb a shock
− Bollinger bandwidth of 22.3% signals elevated volatility
Macro Analyst
bullish
65
/ 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst
neutral
60
/ 100 · Low confidence
News flow is mixed or quiet -- no strong signal either way right now
Portfolio Manager
bearish
30
/ 100 · Moderate confidence
The existing book itself argues for caution here, independent of how good this specific stock looks
− Sector concentration is already high (HHI 2796.97)
Investment Thesis Evolution
Committee score moved marginally from 63.0 to 63.0.
- New bearish signals: 1 appeared.
- Bullish support removed: 1 signal(s) disappeared.
- New bullish signals: 1 appeared.
- Bearish pressure eased: 1 signal(s) disappeared.
Analyst-level changes:
- Risk Analyst: +1 bearish signal(s).
- Value Analyst: +1 bullish signal(s).
Comparing 2026-10-09 to 2026-10-10 (1 day apart).
Technical Analysis
RSI (14)
33.4
Neutral
MACD Histogram
-4.848
Bearish Momentum
Trend Direction
Sideways
Weekly: Uptrend
Market Structure
Lh Ll
Support
$239.83
Resistance
$799.43
Bollinger %B
0.11
Inside Bands
Price vs Moving Averages
EMA 9
$418.94
Below
EMA 21
$434.77
Below
EMA 50
$456.93
Below
EMA 200
$402.33
Below
Fundamental Analysis
Valuation
67
Growth
87
Profitability
93
Financial Health
72
Cash Flow
70
Valuation
P/E Ratio
14.6×
P/B Ratio
15.46×
PEG Ratio
0.04
Dividend Yield
0.14%
52W High
$799.87
52W Low
$112.52
Quality & Growth
ROE
10631.8%
ROA
6798.9%
Gross Margin
4885.0%
Operating Margin
3489.4%
Revenue Growth YoY
—
Debt / Equity
0.12
AI Fundamental Assessment
P/E ratio of 14.6 (inexpensive relative to a 15-40x range); Price-to-book of 15.5x; PEG ratio of 0.0 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 106.3%; Return on assets of 68.0%; Net margin of 72.9%; Gross margin of 48.9%; Current ratio of 1.33 (tight short-term liquidity); Debt-to-equity of 0.12; Free cash flow per share is positive (9.34); Most recent quarter beat estimates by 7.0%; 5 consecutive earnings beats; EPS growth accelerating (+27.7% -> +30.9% QoQ); Average YoY EPS growth of 114.5%; Analyst estimates rising over recent quarters
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