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 coveted 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

$11.1 billion

Industry

Computer storage and peripherals

Trailing-12-Month Revenue

$15.7 billion

Management

CEO Stephen Milligan (since 2012)

CFO Wolfgang Nickl (since 2010)

Return on Equity (average, past 3 years)

21.9%

Cash/Debt

$3.8 billion / $2.1 billion

Dividend Yield

2.1%

Competitors

EMC

Seagate Technology

Toshiba

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

On CAPS, 95% of the 1,384 members who have rated Western Digital believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, dreamjob, succinctly summed up the Western Digital bull case for our community:

I actually came across this one on an Earnings Surprise Screen. [Western Digital] handily beat estimates with very strong sales (not just cost cutting). Upon further evaluation, [Western Digital] is generating healthy amounts of cash, sporting a high ROIC, and it looks quite cheap (even at moderate growth projections). I think this has a lot of upside. Let's see where it goes.

If you want market-topping returns, you need to put together the best portfolio you can. Of course, despite its four-star rating, Western Digital may not be your top choice.

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