WDC’s 9.1% Jump: Fundamentals Support a Measured Buy

I view WDC’s +9.08% session move to $315.45 as broadly supported by operating momentum, not proof that the stock has become expensive. Q3 revenue rose 55.5% year over year, EPS rose 50.8%, and free cash flow surged 129.9% to $1,377M; debt/equity is just 0.08. The valuation remains modest at 11.1x trailing earnings and an estimated 7.8x FY 2028 earnings, with consensus EPS growth of 63.4% that year. But the path is uneven: FY 2027 EPS is estimated to rise only 1.8%, net margin slipped 1.3 pp, and beta is 2.34. Shares remain 35.3% lower over three months. The rally does not change my view; I’ll initiate a measured position, recognizing cyclicality and forecast risk.