Tuesday, March 5, 2013

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.

We've found another growth play we are incredibly excited about -- excited enough to dub it "The Only Stock You Need to Profit from the NEW Technology Revolution." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

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