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Is SMART Global Holdings, Inc. (SGH) a Great Value Stock Right Now?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to...

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This story originally appeared on Zacks

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

- Zacks

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.

SMART Global Holdings, Inc. (SGH) is a stock many investors are watching right now. SGH is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 8.89, while its industry has an average P/E of 22.12. Over the past year, SGH's Forward P/E has been as high as 14.73 and as low as 7.30, with a median of 9.60.

Another notable valuation metric for SGH is its P/B ratio of 4.24. 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 12.21. SGH's P/B has been as high as 5.42 and as low as 2.26, with a median of 4.01, over the past year.

Finally, our model also underscores that SGH has a P/CF ratio of 16.96. 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 current P/CF looks attractive when compared to its industry's average P/CF of 32.74. Over the past year, SGH's P/CF has been as high as 25.67 and as low as 13.21, with a median of 17.69.

These are just a handful of the figures considered in SMART Global Holdings, Inc.'s great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SGH is an impressive value stock right now.



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

 

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