SMART Global Holdings, Inc. (SGH) Stock Sinks As Market Gains: What You Should Know

SMART Global Holdings, Inc. (SGH) closed the most recent trading day at $22.69, moving -0.26% from the previous trading session. This change lagged the S&P 500's 1.32% gain on the day. At the same time, the Dow added 1.38%, and the tech-heavy Nasdaq gained 1.74%.

Heading into today, shares of the company had lost 23.73% over the past month, lagging the Computer and Technology sector's gain of 2.64% and the S&P 500's gain of 4.16% in that time.

Wall Street will be looking for positivity from SGH as it approaches its nex t earnings report date. This is expected to be March 28, 2019. In tha t report , analysts expect SGH to post earnings of $0.83 per share. This would mark a year-over-year decline of 52.02%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $317.21 million, up 1.03% from the year-ago period.

SGH's full-year Zacks Consensus Estimates are calling for earnings of $5.29 per share and revenue of $1.41 billion. These results would represent year-over-year changes of -16.82% and +9.76%, respectively.

It is also important to note the recent changes to analyst estimates for SGH. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 32.53% lower. SGH is currently a Zacks Rank #4 (Sell).

Investors should also note SGH's current valuation metrics, including its Forward P/E ratio of 4.3. Its industry sports an average Forward P/E of 13.91, so we one might conclude that SGH is trading at a discount comparatively.

Meanwhile, SGH's PEG ratio is currently 0.29. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Electronics - Semiconductors was holding an average PEG ratio of 1.07 at yesterday's closing price.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 76, putting it in the top 30% 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.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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