Why Western Digital Is Poised to Outperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, disk drive specialist Western Digital (NASDAQ: WDC  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Western Digital and see what CAPS investors are saying about the stock right now.

Western Digital facts

Headquarters (founded)

Irvine, Calif. (1970)

Market Cap

$8.3 billion

Industry

Computer storage and peripherals

Trailing-12-Month Revenue

$13.8 billion

Management

CEO John Coyne (since 2007)

CFO Wolfgang Nickl (since 2010)

Return on Equity (average, past 3 years)

24.2%

Cash/Debt

$3.5 billion / $2.1 billion

Dividend Yield

2.9%

Competitors

EMC (NYSE: EMC  )

Seagate Technology (NASDAQ: STX  )

Toshiba

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 94% of the 1,378 members who have rated Western Digital believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those bulls, personaltrader, tapped Western Digital as a relatively solid selection:

The company has consistently made money and, although more expensive than Seagate on a P/E basis, has a strong buyback plan, more consistent earnings, a better, less leveraged financial position if further consolidation occurs and reports in a more investor friendly format.

If you want market-thumping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Western Digital may not be your top choice.

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Read/Post Comments (4) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On December 03, 2012, at 8:36 AM, yansh wrote:

    Dun forget to factor in Western Digital's extreme and unethical aggressive techniques to push people for results . . . .

    http://www.youtube.com/watch?v=CL99eBnA-vY

    They are bullish people with muscle and EGO. When Sandisk and all the SSD folks are developing new technologies to shape the industry landscape in computer storage, Western Digital was going around suing every company with SSDs.

    Instead of using the resources to innovate, they invested it in Patent Infringement Lawsuits. That is how they outperform by PURE BRONZ and MUSCLE NOT INNOVATION !

  • Report this Comment On December 03, 2012, at 8:43 PM, yansh wrote:

    And here is an article on CNN about Western Digital refusing to comment when asked about harsh treatment workers in their supply chain.

    http://thecnnfreedomproject.blogs.cnn.com/2011/10/04/trackin...

    Looks like they are rotten right down to the core that spreads not only their own company but their ENTIRE supply and value chain !

  • Report this Comment On December 04, 2012, at 12:18 AM, yansh wrote:

    DUN SUPPORT MODERN DAY SLAVERY BY SUPPORTING WDC PRODUCTS AND STOCKS, WATCH THE VIDEO BY CNN

    http://thecnnfreedomproject.blogs.cnn.com/2011/10/04/trackin...

    where Cambodian Women are locked up in a prison like environment, forced to work 12 hours shift for USD 100.

  • Report this Comment On December 04, 2012, at 3:30 AM, yansh wrote:

    Here is a better video about Western Digital (The Slave Master with the whip)

    http://www.youtube.com/watch?v=dDpSJGX3pVw

    Buying a Western Digital hard drive is JUST AS good as buying Blood Diamonds !

    DUN rob the future of INNOVATIVE INDUSTRY BY SUPPORTING SLAVERY !

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