In the latest trading session, SMART Global Holdings, Inc. (SGH) closed at $27.75, marking a -1.7% move from the previous day. This change lagged the S&P 500's daily loss of 0.94%. At the same time, the Dow lost 0.87%, and the tech-heavy Nasdaq lost 1.18%.
Coming into today, shares of the company had gained 18.02% in the past month. In that same time, the Computer and Technology sector gained 10.32%, while the S&P 500 gained 8.01%.
Investors will be hoping for strength from SGH as it approaches its next earnings release. The company is expected to report EPS of $0.75, down 56.65% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $317.21 million, up 1.03% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.67 per share and revenue of $1.41 billion. These totals would mark changes of -26.57% and +9.76%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for SGH. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 32.53% lower. SGH is holding a Zacks Rank of #4 (Sell) right now.
Valuation is also important, so investors should note that SGH has a Forward P/E ratio of 6.04 right now. This valuation marks a discount compared to its industry's average Forward P/E of 15.76.
It is also worth noting that SGH currently has a PEG ratio of 0.4. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SGH's industry had an average PEG ratio of 1.23 as of yesterday's close.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 155, putting it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
SMART Global Holdings, Inc. (SGH): Free Stock Analysis Report
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