"Seagate, which sells about a third of the industry's units, is generally regarded by investors and analysts as the technology leader. The global PC market is "healthy" and will likely grow at a stable 11.1% this year over last, says IDC's director of PC research, Loren Loverde. Global PC sales rose a better-than-expected 10.1% in the first quarter, faster than the 8.5% forecast, according to PC analyst Mikako Kitagawa with research firm Gartner."

"Once investors come to appreciate these facts, Western Digital shares could appreciate another 20% or more from a recent price of $18.10 per share. Western is cheaper than Seagate by a wide margin, trading at a two-year-low price-to-earnings multiple of about 9.4 times the next four quarters' estimated profit per share -- below its five-year median of 11.6 times, while Seagate is near its median of 12.2 times. "Western has an attractively valued stock for a company that is one of the premier players in a market that's set to grow at least 10% a year for several years," says Citigroup analyst Paul Mansky, referring to the expected ramp-up in disk-drive unit sales."