Seagate Technology PLC (STX), Western Digital Corp (WDC), BofI Holding, Inc. (BOFI): Thursday’s Top Upgrades (and Downgrades)

That being said, between the stock’s ultralow share price and its generous 3.3% dividend yield, it seems to me there’s a lot of negativity priced into Seagate Technology PLC (NASDAQ:STX) stock already — and maybe even more than is justified by the projected rate of earnings decline. Personally, at prices this cheap, I think the stock’s probably worth a gamble.

Western Digital
Of course, the Longbow idea I really like is Western Digital Corp (NASDAQ:WDC). With a P/E ratio of only 7.9, and a price-to-free cash flow ratio of just 6.2, Western Digital Corp (NASDAQ:WDC) shares offer you the chance to own a premier name in hard disk drives, to pay multiples to earnings and free cash flow that are nearly as attractive as those found at Seagate Technology PLC (NASDAQ:STX) — and to do all this with no fear of seeing earnings decline in the years ahead. On average, analysts see Western Digital Corp (NASDAQ:WDC) earnings stagnating, or growing only 0.1% per year over the next five years, but not declining.

To me, this makes Western Digital Corp (NASDAQ:WDC) look like an even more attractive opportunity than Seagate Technology PLC (NASDAQ:STX). But honestly, despite the sharp rises that both stocks have recorded over the past year already, I think both remain sufficiently cheap to reward shareholders for years to come.

The article Thursday’s Top Upgrades (and Downgrades) originally appeared on Fool.com and is written by Rich Smith.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends BofI Holding. The Motley Fool owns shares of BofI Holding and Western Digital.

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