Value
4.2/10data confidence 100%| Component | Sub-score |
|---|---|
| P/E | 4.3 |
| P/S | 0.0 |
| EV/EBITDA | 0.0 |
| Fwd P/E | 4.2 |
| PEG | 10.0 |
| Analyst target | 4.0 |
- ▸Forward P/E: 29.0x
- ▸PEG: 0.46
WDC · Why this verdict
Why Western Digital (WDC) is rated BUY WAIT
Updated
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VerdictBUY WAIT
Overall score5.9/10
ConfidenceMEDIUM
MacroRISK_OFF
Per-dimension breakdown
Quality
7.7/10data confidence 100%| Component | Sub-score |
|---|---|
| ROE | 10.0 |
| ROA | 9.8 |
| Gross margin | 5.1 |
| Op margin | 10.0 |
| Net margin | 10.0 |
| Current ratio | 5.5 |
| FCF quality | 2.5 |
| Moat | 8.2 |
| Piotroski F | 7.8 |
- ▸Excellent ROE: 86%
- ▸Strong margins: 55%
- ▸Earnings quality RED FLAG: 32% FCF/NI
- ▸Wide economic moat
Growth
10.0/10data confidence 33%| Component | Sub-score |
|---|---|
| Rev growth | 10.0 |
- ▸Strong growth: 46% YoY
Momentum
3.0/10data confidence 100%| Component | Sub-score |
|---|---|
| RSI | 5.0 |
| MACD | 0.0 |
| OBV | 1.0 |
| MA position | 9.0 |
| Volume | 0.0 |
- ▸Volume distribution (falling OBV)
- ▸Above 200-day MA
Sentiment
5.5/10data confidence 100%| Component | Sub-score |
|---|---|
| LLM sentiment | 3.5 |
| Analyst rating | 7.5 |
| Price target | 5.1 |
Insider
5.0/10data confidence 50%| Component | Sub-score |
|---|---|
| materiality | 5.0 |
| holder change | 5.1 |
- ▸Insider selling (low materiality) — $17,775,486 (0.010% of mkt cap)
Peer rank
4.7/10data confidence 80%| Component | Sub-score |
|---|---|
| value rank | 4.7 |
| quality rank | 8.9 |
| growth rank | 5.0 |
- ▸Superior ROE vs peers
- ▸Best-in-class margins
Technical
4.8/10data confidence 100%| Component | Sub-score |
|---|---|
| bollinger | 4.2 |
| support resistance | 4.6 |
| 52w position | 7.4 |
| gap | 3.0 |
- ▸Extreme gap up (5.6%) - may pull back
Risk (lower is worse)
4.3/10data confidence 100%| Component | Sub-score |
|---|---|
| short interest | 5.1 |
| days to cover | 6.9 |
| volatility | 0.0 |
| put call | 7.1 |
| implied vol | 0.0 |
| max pain risk | 3.0 |
| beta | 2.7 |
| debt equity | 9.3 |
- ▸High IV: 99%
- ▸Above max pain $215
- ▸Concentration risks: 1 HIGH (10-K Item 1A — sized via position_sizing, validated via buy_confidence)
Catalyst
7.2/10data confidence 100%| Component | Sub-score |
|---|---|
| erm | 5.0 |
| earnings history | 10.0 |
| earnings timing | 5.0 |
| surprise avg | 10.0 |
| dividend safety | 5.2 |
| news activity | 8.0 |
- ▸Perfect beat streak: 4Q
- ▸Dividend: 12.0%
How the verdict was assembled
Engine trigger
Growth is cheap relative to earnings, but the technical setup has not yet produced a breakout above resistance (PEG 0.46, quality 7.7/10, growth 10.0/10).
Engine technical detail
verdict_path:
L4:PATH_C2_GARP_WAIT|ENTRY_STICKY:WITHIN_BANDPassed (6)
- INSIDER:OK
- 8K:CLEAN
- NEWS_EVENTS:NONE_RECENT
- EARNINGS_PROXIMITY:51d clear
- SEMI_CYCLE_PEAK:CLEAR
- MATERIALS_CYCLE_PEAK:CLEAR
Failed (2)
- MOMENTUM:3.0<4.5
- ASYMMETRY:-0.6=NEGATIVE
Warning (0)
none
Reward-to-Risk
-0.61
Upside
-9.2%
Downside
15.0%
Sizing output
STARTER
SetupUNKNOWN — No clear chart pattern; technical signals are mixed
EdgeTEMP_HEADWIND — High quality (7.7) with weak momentum (3.0)
SuitabilityAGGRESSIVE — Beta 2.20>1.3
Investment implication
The C-path quality+growth combination triggered the STRONG_BUY_WAIT verdict: quality 7.7 and growth 10.0 both clear their thresholds, with asymmetric R:R of -0.61 supporting the read.
The strongest dimensions are Growth at 10.0, Quality at 7.7, and Catalyst at 7.2; the weakest are Momentum at 3.0, Value at 4.2, and Risk (lower is worse) at 4.3. The V9 engine flagged 2 failed gates, producing an asymmetric reward-to-risk of -0.61 and an engine sizing output of STARTER.