Can Western Digital Stock Hold Up When Markets Turn?
Western Digital (WDC) stock is up 10.7% in a day. The rally reflects robust AI-driven data growth and strong data center demand for storage, but big moves like this often invite a tougher question: is the stock truly resilient when markets reverse?
Before judging its downturn reslience, let’s look at where Western Digital stands today.
- Size: Western Digital is a $98 Bil company with $13 Bil in revenue currently trading at $279.70.
- Fundamentals: Last 12 month revenue growth of 39.2% and operating margin of 21.1%.
- Liquidity: Has Debt to Equity ratio of 0.05 and Cash to Assets ratio of 0.15
- Valuation: Western Digital stock is currently trading at P/E multiple of 52.4 and P/EBIT multiple of 45.6
- Has returned (median) 59.9% within a year following sharp dips since 2010. See WDC Dip Buy Analysis.
These metrics point to a Strong operational performance, alongside Very High valuation – making the stock Relatively Expensive. For details, see Buy or Sell WDC Stock
That brings us to the key consideration for investors chasing this rally: how resilient is WDC stock if markets turn south? This is where our downturn resilience framework comes in. Suppose WDC stock falls 20-30% to $196 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
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2022 Inflation Shock
- WDC stock fell 60.9% from a high of $77.17 on 4 June 2021 to $30.21 on 28 December 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 29 May 2024
- Since then, the stock increased to a high of $279.70 on 28 January 2026 $279.70
| WDC | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -60.9% | -25.4% |
| Time to Full Recovery | 518 days | 464 days |
2020 Covid Pandemic
- WDC stock fell 58.8% from a high of $70.93 on 23 January 2020 to $29.19 on 18 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 1 March 2021
| WDC | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -58.8% | -33.9% |
| Time to Full Recovery | 348 days | 148 days |
2018 Correction
- WDC stock fell 67.1% from a high of $106.45 on 16 March 2018 to $35.06 on 24 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 19 September 2025
| WDC | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -67.1% | -19.8% |
| Time to Full Recovery | 2,461 days | 120 days |
2008 Global Financial Crisis
- WDC stock fell 75.2% from a high of $39.98 on 5 June 2008 to $9.93 on 20 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 16 December 2009
| WDC | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -75.2% | -56.8% |
| Time to Full Recovery | 391 days | 1,480 days |
Feeling jittery about WDC stock? Consider portfolio approach.
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