Back to top

Is SMART Global Holdings, Inc. (SGH) Stock Undervalued Right Now?

Read MoreHide Full Article

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 stock to keep an eye on 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.

Another valuation metric that we should highlight is SGH's P/B ratio of 3.95. Investors use the P/B ratio to look at a stock's market value versus 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 4.74. Over the past year, SGH's P/B has been as high as 9.23 and as low as 3.14, with a median of 5.86.

Finally, our model also underscores that SGH has a P/CF ratio of 5.19. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. SGH's P/CF compares to its industry's average P/CF of 12.98. Over the past year, SGH's P/CF has been as high as 23.37 and as low as 4.13, with a median of 9.73.

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.




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


SMART Global Holdings, Inc. (SGH) - free report >>

More from Zacks Tale of the Tape

You May Like

Published in