Western Digital Corp. (NASDAQ: WDC) stock rose more than 3% Friday, outperforming the broader market as the stock attempted to rebound from a recent pullback.
The S&P 500 fell 0.39%, while the Dow dropped 0.69% and the Russell 2000 declined 0.92%. The Nasdaq was little changed. Meanwhile, the Technology sector slipped 0.07%.
According to market data, shares of memory and storage companies are trading higher after reports that SK hynix Inc. is in talks with Intel Corp. to produce memory chips in the U.S. for the first time.
Western Digital's gains also come as the stock attempts to recover from a recent pullback. Shares have traded below key short- and medium-term moving averages in recent weeks.
Technical Analysis
Western Digital's longer-term trend remains constructive. The stock is 12.8% above its 200-day simple moving average of $385.84.
However, shares remain 3.1% below the 20-day SMA of $448.88 and 9.6% below the 50-day SMA of $481.59. The 20-day SMA also remains below the 50-day SMA, signaling short-term weakness.
Momentum remains cautious. The MACD is below its signal line, while the histogram is negative.
Resistance sits near $480, close to the 50-day SMA. A sustained move above that level could signal improving momentum. Support is near $422.
Analyst Outlook
The stock carries a Buy consensus rating with an average price forecast of $649.79.
Citigroup maintained a Buy rating and lowered its price forecast to $740 on Aug. 7. TD Cowen maintained Buy and raised its forecast to $540 on Aug. 6. UBS maintained Neutral and lowered its forecast to $525 the same day.
MarketDash Edge Rankings
Western Digital scores strongly on Growth, Momentum and Quality in the MarketDash Edge scorecard.
The stock has a Growth score of 99.74, Momentum score of 98.14 and Quality score of 96.06. However, its Value score stands at just 6.29.
Top ETF Exposure
Western Digital is held by several technology and storage-focused ETFs. The Invesco Dorsey Wright Technology Momentum ETF (NASDAQ: PTF) has a 4.07% weighting in WDC. The Alger 35 ETF (NYSE: ATFV) has a 5.49% weighting, while the Tema Memory ETF (NYSE: DISK) has a 4.29% weighting.
As a result, flows into or out of these ETFs can add to trading activity in Western Digital shares.
Price Action
WDC Stock Price Activity: Western Digital shares were up 3.08% at $436.93 at the time of publication Friday, according to market data.
