The P/E of 19 is running a little high, however the company is forecasting large earnings growth with a forward P/E of 9. If it's able to achieve and maintain this growth, then it's a decent buy.
The P/B is also running a bit high at 2.40. I'd expect this though, as WDC is a strong brand in the marketplace.
Since the company is profitable, however slightly overpriced, I'd rate this investment opportunity a 5 out of 10. There are other companies out there that are much more undervalued, with more consistent earnings that I'd recommend investing in first.
Remember, market prices are not 100% efficient. A company can be both significantly undervalued and have huge growth projections. These are the ones I recommend putting your money into.
I like the stock but I dont think its prime to put money in it just yet. Although it made a higher closing high February than January, it did not make a higher high as this can be a sign for further consolidation/ sideways price movement.I see more potential to the upside but an entry right now wouldnt be well timed, unless you dont care about being 3-4% down in a stock before you sell. I would wait 2-3 days to see how it reacts in the 81-82.5 support level. If the price immediately pulls back to 85-86 monday-tues. then it would not be a safe/false buy point and could easily reverse, but if the downtrend quickly tightens in the support level between 81-82.5 then the shares can be bought with little risk of a further downtrend and a tight stop loss can be placed. And a P/E of 19 isnt that high-in my opinion.
reason to state it's a good investment:-
-Return on invested capital was always high, even in 2009.
-WDC is the best managed company in the industry.It has a more stable margin than its competitors.
-WDC had steadily grown market share while maintaining high profitability in an extremely competitive market. And became market leader soon after my purchase.
-P/E ratio was low and I thought Mr. Market’s view would turn once supply and demand balanced.
-I thought the iPad and other mobile devices are complementary goods, not substitute goods to the PC.
-I thought it would take a long time for solid-state hard drives to replace hard disk drives (HDDs), and WDC would have time to catch up with the first comers.
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Too expensive for my taste but to each their own.
WDC, Western Digital Corp. Based on my research the company has found new partner ship and is releasing a new product of which is highly rated. The my cloud EX series. The stocks went down recently. But the company is having consistent growth over months. So I believe it's prime time to invest in it.
On news articles I have research the company is hiring more employees and is expanding due to these new partner ships.
I am fairly new to investing and this is the first time I plan to use REAL money, so I plan to use little bit of money and not put all my eggs in one basket so to speak.
What are some flaws I have with my reasoning behind what I have just said?
What are tips and tricks I should do regarding technology related companies?
And how do I justify how much a stock should be worth if growth is seen based on specific companies?
