Advertisement
New Zealand markets closed

  • NZX 50

    11,796.21
    -39.83 (-0.34%)
     

  • NZD/USD

    0.5892
    -0.0013 (-0.22%)
     

  • NZD/EUR

    0.5531
    -0.0014 (-0.25%)
     

  • ALL ORDS

    7,817.40
    -81.50 (-1.03%)
     

  • ASX 200

    7,567.30
    -74.80 (-0.98%)
     

  • OIL

    83.00
    +0.27 (+0.33%)
     

  • GOLD

    2,397.60
    -0.40 (-0.02%)
     

  • NASDAQ

    17,394.31
    -99.31 (-0.57%)
     

  • FTSE

    7,829.98
    -47.07 (-0.60%)
     

  • Dow Jones

    37,775.38
    +22.07 (+0.06%)
     

  • DAX

    17,679.99
    -157.41 (-0.88%)
     

  • Hang Seng

    16,224.14
    -161.73 (-0.99%)
     

  • NIKKEI 225

    37,068.35
    -1,011.35 (-2.66%)
     

  • NZD/JPY

    90.9380
    -0.3160 (-0.35%)
     

SMART Global Holdings, Inc. (SGH) Surges 7.8%: Is This an Indication of Further Gains?

Zacks Equity Research
·2-min read

SMART Global Holdings, Inc. (SGH) shares rallied 7.8% in the last trading session to close at $21.98. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 38.5% gain over the past four weeks.

SMART Global Holdings extended its rally, driven by solid momentum across its Intelligent Platform Solutions. Also, strength in Penguin cloud-based solutions and solutions focused on core, data center, AI and analytics, is constantly driving its customer momentum.

This company is expected to post quarterly earnings of $0.40 per share in its upcoming report, which represents a year-over-year change of -54%. Revenues are expected to be $375.14 million, down 18.9% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

ADVERTISEMENT

For SMART Global Holdings, Inc., the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on SGH going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

SMART Global Holdings, Inc. belongs to the Zacks Electronics - Semiconductors industry. Another stock from the same industry, Broadcom Inc. (AVGO), closed the last trading session 7.3% higher at $728.80. Over the past month, AVGO has returned 10.3%.

For Broadcom Inc. , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $10.13. This represents a change of +11.7% from what the company reported a year ago. Broadcom Inc. currently has a Zacks Rank of #3 (Hold).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

SMART Global Holdings, Inc. (SGH) : Free Stock Analysis Report

Broadcom Inc. (AVGO) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research