SMART Global Holdings, Inc. (SGH) Dips More Than Broader Markets: What You Should Know
SMART Global Holdings, Inc. (SGH) closed the most recent trading day at $29.12, moving -1.39% from the previous trading session. This change lagged the S&P 500's 0.43% loss on the day. Meanwhile, the Dow lost 0.5%, and the Nasdaq, a tech-heavy index, added 0.26%.
Prior to today's trading, shares of the company had lost 3.02% over the past month. This has was narrower than the Computer and Technology sector's loss of 6.53% and the S&P 500's loss of 4.68% in that time.
SGH will be looking to display strength as it nears its next earnings release, which is expected to be December 20, 2018. The company is expected to report EPS of $1.77, up 68.57% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $382.24 million, up 44.02% from the year-ago period.
SGH's full-year Zacks Consensus Estimates are calling for earnings of $6.94 per share and revenue of $1.57 billion. These results would represent year-over-year changes of +9.12% and +22.17%, respectively.
Any recent changes to analyst estimates for SGH should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 3.28% higher. SGH is currently a Zacks Rank #2 (Buy).
Looking at its valuation, SGH is holding a Forward P/E ratio of 4.26. For comparison, its industry has an average Forward P/E of 16.75, which means SGH is trading at a discount to the group.
We can also see that SGH currently has a PEG ratio of 0.28. 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 1.24 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 82, putting it in the top 32% 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.
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