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Should Value Investors Buy SMART Global Holdings, Inc. (SGH) Stock?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
SMART Global Holdings, Inc. (SGH - Free Report) is a stock many investors are watching right now. SGH is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 8.75, while its industry has an average P/E of 12.13. Over the last 12 months, SGH's Forward P/E has been as high as 8.75 and as low as 3.36, with a median of 4.58.
We also note that SGH holds a PEG ratio of 0.58. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SGH's industry has an average PEG of 0.95 right now. SGH's PEG has been as high as 0.58 and as low as 0.22, with a median of 0.31, all within the past year.
Another valuation metric that we should highlight is SGH's P/B ratio of 2.85. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. SGH's current P/B looks attractive when compared to its industry's average P/B of 6.60. Over the past year, SGH's P/B has been as high as 4.53 and as low as 1.58, with a median of 2.90.
Finally, our model also underscores that SGH has a P/CF ratio of 6.59. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. SGH's current P/CF looks attractive when compared to its industry's average P/CF of 19.16. Within the past 12 months, SGH's P/CF has been as high as 7.15 and as low as 2.99, with a median of 4.40.
These are only a few of the key metrics included in SMART Global Holdings, Inc.'s strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, SGH looks like an impressive value stock at the moment.
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Should Value Investors Buy SMART Global Holdings, Inc. (SGH) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
SMART Global Holdings, Inc. (SGH - Free Report) is a stock many investors are watching right now. SGH is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 8.75, while its industry has an average P/E of 12.13. Over the last 12 months, SGH's Forward P/E has been as high as 8.75 and as low as 3.36, with a median of 4.58.
We also note that SGH holds a PEG ratio of 0.58. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SGH's industry has an average PEG of 0.95 right now. SGH's PEG has been as high as 0.58 and as low as 0.22, with a median of 0.31, all within the past year.
Another valuation metric that we should highlight is SGH's P/B ratio of 2.85. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. SGH's current P/B looks attractive when compared to its industry's average P/B of 6.60. Over the past year, SGH's P/B has been as high as 4.53 and as low as 1.58, with a median of 2.90.
Finally, our model also underscores that SGH has a P/CF ratio of 6.59. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. SGH's current P/CF looks attractive when compared to its industry's average P/CF of 19.16. Within the past 12 months, SGH's P/CF has been as high as 7.15 and as low as 2.99, with a median of 4.40.
These are only a few of the key metrics included in SMART Global Holdings, Inc.'s strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, SGH looks like an impressive value stock at the moment.