SMART Global Holdings, Inc. (SGH) Outpaces Stock Market Gains: What You Should Know
SMART Global Holdings, Inc. (SGH) closed at $28.72 in the latest trading session, marking a +1.63% move from the prior day. This change outpaced the S&P 500's 1.45% gain on the day. Meanwhile, the Dow gained 0.86%, and the Nasdaq, a tech-heavy index, added 0.44%.
Prior to today's trading, shares of the company had lost 14.08% over the past month. This has lagged the Computer and Technology sector's loss of 4.28% and the S&P 500's loss of 3.26% in that time.
SMART Global Holdings, Inc. will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.72, up 63.64% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $435.01 million, up 43.09% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.31 per share and revenue of $1.84 billion. These totals would mark changes of +26.82% and +22.6%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for SMART Global Holdings, Inc.These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.66% lower within the past month. SMART Global Holdings, Inc. is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, SMART Global Holdings, Inc. is currently trading at a Forward P/E ratio of 8.53. This represents a discount compared to its industry's average Forward P/E of 18.65.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 61, which puts it in the top 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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