QM · rank #2 · 2026-10-21
WDC
NASDAQ · $136.29B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +320.84% |
|---|---|
| ROE TTM Return on equity, trailing 12 months. | +130.8% |
| Profit margin Net profit margin, trailing 12 months. | +73.0% |
| Market cap (USD) Size filter: > $500M required. | $136.29B |
| Anchor (recent) Close on 2026-09-21 | $448.17 |
| Anchor (far) Close on 2025-09-19 | $106.49 |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
Western Digital is a large-cap HDD manufacturer supplying high-capacity nearline drives (40TB ePMR, UltraSMR, HAMR roadmap) to hyperscale cloud and AI data-center customers.
Rationale
The quality_momentum signal is reinforced by 44% YoY revenue growth, 54% gross margins, $3.5B annual free cash flow, and hyperscale purchase commitments extending into 2028-2029 that underpin both the momentum and the earnings quality dimensions of the screen.
Material risks
- 1HAMR qualification delays or ePMR yield problems could allow Seagate to capture the next capacity generation, breaking the successive-ramp thesis that justifies the premium multiple and momentum continuation into fiscal Q1 2027 earnings on October 22.
- 2Concentrated hyperscale customers with long-term agreements also have the scale and incentive to internalize storage-system design or accelerate NAND/SSD substitution, which would erode WD's pricing power and compress the gross margin expansion embedded in current estimates.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.