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Are Investors Undervaluing SMART Global Holdings, Inc. (SGH) Right Now?
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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is SMART Global Holdings, Inc. (SGH - Free Report) . SGH is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors should also recognize that SGH has a P/B ratio of 3.43. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 4.36. Within the past 52 weeks, SGH's P/B has been as high as 10.22 and as low as 3.14, with a median of 6.10.
Finally, our model also underscores that SGH has a P/CF ratio of 4.50. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.10. SGH's P/CF has been as high as 25.88 and as low as 4.13, with a median of 10.21, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that SMART Global Holdings, Inc. Is likely undervalued currently. And when considering the strength of its earnings outlook, SGH sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing SMART Global Holdings, Inc. (SGH) Right Now?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is SMART Global Holdings, Inc. (SGH - Free Report) . SGH is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors should also recognize that SGH has a P/B ratio of 3.43. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 4.36. Within the past 52 weeks, SGH's P/B has been as high as 10.22 and as low as 3.14, with a median of 6.10.
Finally, our model also underscores that SGH has a P/CF ratio of 4.50. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.10. SGH's P/CF has been as high as 25.88 and as low as 4.13, with a median of 10.21, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that SMART Global Holdings, Inc. Is likely undervalued currently. And when considering the strength of its earnings outlook, SGH sticks out at as one of the market's strongest value stocks.