Sandisk Corp. (NASDAQ:SNDK) shares are nudging higher in Tuesday's premarket, up about 1%, as investors lean into growth names. Nasdaq futures are up 0.32%, while S&P 500 futures are slightly lower at 0.10%. The move comes as the memory sector continues to draw attention, thanks to rising contract prices and a brighter long-term picture.
Roundhill Investments' Chief Investment Strategist Drew Pettit recently made the case that memory stocks look attractive after a pullback. He points to climbing memory prices and improving long-term estimates as key drivers. Pettit reckons industry revenue could roughly triple by 2030. He also notes that current stock prices imply about 30% annual earnings growth over the next five years, while Wall Street's estimates suggest growth could hit 35% or more. That gap, he argues, makes discounted cash flow valuations "make a lot of sense" even after big runs in names like Sandisk, Micron Technology Inc. (NASDAQ:MU), Western Digital Corp. (NASDAQ:WDC), and Seagate Technology Holdings PLC (NASDAQ:STX).
Technical Check
Sandisk is trading comfortably above its major moving averages. The stock sits 15.7% above its 20-day simple moving average (SMA) and 14.1% above its 50-day SMA. It's also 16.1% above its 100-day SMA and a hefty 76.3% above its 200-day SMA. That long-term trend is clearly bullish.
But the short-term picture is a bit more nuanced. The 20-day SMA is still below the 50-day SMA, which can signal near-term consolidation. However, the 50-day SMA is above the 200-day SMA, reinforcing the longer-term uptrend. Momentum is also turning more favorable: the MACD is above its signal line, and the histogram is positive.
On the downside, support sits near $1,416.50, close to the 100-day exponential moving average of $1,409.27. Resistance is around $1,828.
What Analysts Are Saying
The Street is largely bullish on Sandisk, with a Buy consensus rating and an average price forecast of $2,190.50. But recent analyst actions show some divergence. Mizuho maintained an Outperform rating but trimmed its price target to $1,875. RBC Capital raised its forecast to $1,600 with a Sector Perform rating. Wells Fargo bumped its target to $1,550, keeping an Equal-Weight rating.
On MarketDash's metrics, Sandisk scores a Momentum of 99.88 and a Value of 10.16, indicating strong relative momentum but weaker value characteristics. That's a stock that's been running, and the valuation reflects it.
Price Action
Sandisk shares were up 1.20% at $1,760.90 during premarket trading on Tuesday, according to market data.
