Western Digital Corp

WDC remains in a pronounced Stage 4 decline characterized by sequential lower highs and lower lows, keeping price below declining EMAs. A recent oversold bounce lacks structural repair as price remains under short-term EMAs, confirming supply dominance. Medium-term bias stays bearish, and execution is deferred selling into rallies around the 9/21EMA and 50DMA zones. Momentum + EPS strategy aligns with trimming into strength.

• ↑Q3 FY2026 revenue rose 45% YoY to $3.3B; gross margin expanded to 50.5%.
• ↑Operating income jumped 116% YoY to $1.3B, yielding a 38.6% operating margin.
• ↓Forward P/S at 13.11x vs five-year avg 4.56x and 29x EV/EBITDA suggest overvaluation.