June 14- Western Digital August 20th, 2021
WDC, August 20th, 2021, $80C, $3.50
Western Digital designs, manufactures, markets and sells data storage solutions- both physical products and cloud-based solutions. They break their business down into these segments: client devices, data center devices, solutions and clients solutions. Within their client customers they service mobile, desktop, gaming, digital hard drives, SSDs, wafers and others. Their data center serves customers who need HDDs, data center software, and SSDs for enterprise purposes. Data center demand continues to surge as we see all data center focused stocks, ripping higher (EQIX, GOOGL, NVDA, etc.)
In addition, they are riding the crypto hype as Chia farmers are using 18 terabyte drives. Most notably, given their strong trending on earnings, Wall Street thinks they can not only beat estimates, but also raise guidance. This stock has average price target of $90 in next 12 months. We added this around $70 in our portfolio as we were waiting for a pull back in the stock, but never got one. In addition the stock is trading at price to earnings of 66, which has come down a lot making it more attractive.