SMART Global Holdings, Inc. (SGH) Moves 8.1% Higher: Will This Strength Last?
SMART Global Holdings, Inc. (SGH) shares ended the last trading session 8.1% higher at $25.66. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 39.7% gain over the past four weeks.
Smart Global Holdings extended its rally, driven by its latest agreement to sell 81% of stake in its SMART Modular Technologies do Brasil – Industria e Comercio de Componentesv to Lexar Europe $166 million in cash.
This company is expected to post quarterly earnings of $0.40 per share in its upcoming report, which represents a year-over-year change of -54%. Revenues are expected to be $375.14 million, down 18.9% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For SMART Global Holdings, Inc., the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on SGH going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
SMART Global Holdings, Inc. belongs to the Zacks Electronics - Semiconductors industry. Another stock from the same industry, Sequans (SQNS), closed the last trading session 3.2% higher at $2.25. Over the past month, SQNS has returned -5.2%.
For Sequans , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.13. This represents a change of -550% from what the company reported a year ago. Sequans currently has a Zacks Rank of #3 (Hold).
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