In the latest trading session, SMART Global Holdings, Inc. (SGH - Free Report) closed at $28.59, marking a +1.28% move from the previous day. The stock outpaced the S&P 500's daily loss of 3.29%. Elsewhere, the Dow lost 3.15%, while the tech-heavy Nasdaq lost 4.08%.
Coming into today, shares of the company had lost 6.99% in the past month. In that same time, the Computer and Technology sector lost 2.28%, while the S&P 500 gained 0.44%.
SGH will be looking to display strength as it nears its next earnings release, which is expected to be December 20, 2018. In that report, analysts expect SGH to post earnings of $1.77 per share. This would mark year-over-year growth of 68.57%. Meanwhile, our latest consensus estimate is calling for revenue of $382.24 million, up 44.02% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.03 per share and revenue of $1.57 billion, which would represent changes of +10.53% and +22.16%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for SGH. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.28% higher within the past month. SGH is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that SGH has a Forward P/E ratio of 4.02 right now. Its industry sports an average Forward P/E of 16.49, so we one might conclude that SGH is trading at a discount comparatively.
Also, we should mention that SGH has a PEG ratio of 0.27. 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 1.31 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 96, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.