A stock trading at less than five times forward earnings can look like a bargain, until investors realize those earnings may be close to their peak. That is the dilemma facing SanDisk Corp. (NASDAQ: SNDK) and Western Digital Corp. (NASDAQ: WDC), two memory stocks that have surrendered roughly 60% of their 52-week highs.

The sharp correction has brought valuations down dramatically, but their technical charts suggest investors may need more patience before calling a bottom.

Low P/E Ratios Come With a Catch

According to MarketDash Pro data, SanDisk trades at 7.8 times trailing earnings and just 4.3 times forward earnings. Western Digital trades at 11 times trailing earnings and 12.9 times forward earnings.

Those multiples could attract bargain hunters looking for exposure to the AI infrastructure buildout without paying the premiums that accompanied the stocks' earlier rallies. But a low earnings multiple does not automatically mean a stock is cheap.

Memory and storage businesses are cyclical, and exceptionally strong earnings can make valuations look deceptively attractive when investors expect profitability to normalize.

The question is whether current earnings can support these multiples or whether the market is already anticipating a more prolonged correction.

Western Digital Is Showing Signs of Life, SanDisk Is Not There Yet

The technical picture offers an important distinction between the two stocks.

Western Digital stock, at $313.31 in the chart above, has climbed back above its eight-day simple moving average of $301.02. However, it remains below the 20-day average of $338.33, the 50-day average of $394.68 and the 200-day average of $421.91.

Its relative strength index (RSI) has recovered to 41.66, moving away from oversold territory but remaining below the neutral 50 mark.

Meanwhile, the moving average convergence divergence (MACD) remains negative, although its histogram is narrowing, suggesting selling momentum may be easing.

SanDisk faces a more challenging setup. At $916.59, its stock remains below its eight-day moving average of $930.77, 20-day average of $1,144.02, 50-day average of $1,454.41 and 200-day average of $1,280.60.

Its RSI stands at 35.13, closer to oversold territory, while its MACD remains deeply negative. The histogram is also showing signs of improvement, but that alone does not confirm a reversal.

The distinction matters: Western Digital is attempting to reclaim its short-term trend, while SanDisk has yet to clear even its nearest moving-average hurdle.

For investors, the next test is whether earnings growth can withstand moderating memory prices, industry capacity changes and any slowdown in AI infrastructure spending.

A 60% drawdown may offer a second chance to buy these stocks, but neither a compressed P/E ratio nor an improving MACD histogram is enough to establish that the worst is over.