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

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is SMART Global Holdings, Inc. (SGH - Free Report) . SGH is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.58. This compares to its industry's average Forward P/E of 22.09. Over the last 12 months, SGH's Forward P/E has been as high as 14.73 and as low as 7.05, with a median of 9.62.

We should also highlight that SGH has a P/B ratio of 4.25. 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. This stock's P/B looks solid versus its industry's average P/B of 11.47. SGH's P/B has been as high as 5.42 and as low as 2.04, with a median of 3.65, over the past year.

Finally, we should also recognize that SGH has a P/CF ratio of 18.19. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 30.28. Within the past 12 months, SGH's P/CF has been as high as 25.67 and as low as 12.80, with a median of 17.53.

Value investors will likely look at more than just these metrics, but the above data helps show that SMART Global Holdings, Inc. Is likely undervalued currently. And when considering the strength of its earnings outlook, SGH sticks out at as one of the market's strongest value stocks.


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