Seagate Technology Is Soaring After Its Strong Earnings Report. Should You Buy Western Digital Before Its Earnings Report?
Seagate Technology's shares surged after a strong earnings report. Can you expect competitor Western Digital to do the same when it reports earnings on Aug. 5?
Overview
Storage and memory stocks had experienced pullbacks amid broad macroeconomic jitters and valuation concerns surrounding artificial intelligence (AI) hardware trades. Then came Seagate Technology (NASDAQ: STX) with a strong fourth-quarter, beat-and-raise performance, lifting the stock by more than $100 between its close on July 28, when it announced earnings, and its close on July 30.
Because Seagate and Western Digital (NASDAQ: WDC) operate as a tight duopoly in the high-capacity, hard disk drive (HDD) market, Seagate's performance offers clear visibility into the underlying health of the data storage industry and Western Digital's own performance.
Details
That's good news for investors in Western Digital, which reports its Q4 results on Aug. 5. Its shares rose 15% between the stock's close on July 28 and its close on July 30. Here are three reasons why Western Digital's stock could jump higher after it reports earnings, and one reason it won't:
Source
Originally published at www.fool.com.