SanDisk (SNDK): Today's Pre-Market Leader Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified SanDisk ( SNDK) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified SanDisk as such a stock due to the following factors:

  • SNDK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $255.3 million.
  • SNDK traded 13,012 shares today in the pre-market hours as of 9:25 AM.
  • SNDK is up 2.4% today from yesterday's close.

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More details on SNDK:

SanDisk Corporation designs, develops, manufactures, and markets data storage products that are used in various consumer electronics products. The stock currently has a dividend yield of 1.3%. SNDK has a PE ratio of 19.4. Currently there are 18 analysts that rate SanDisk a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for SanDisk has been 3.6 million shares per day over the past 30 days. SanDisk has a market cap of $20.6 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.55 and a short float of 6.6% with 5.55 days to cover. Shares are up 31.4% year-to-date as of the close of trading on Tuesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates SanDisk as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 13.8%. Since the same quarter one year prior, revenues slightly increased by 7.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Although SNDK's debt-to-equity ratio of 0.29 is very low, it is currently higher than that of the industry average. To add to this, SNDK has a quick ratio of 1.51, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has significantly increased by 53.68% to $587.70 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 35.84%.
  • Compared to its closing price of one year ago, SNDK's share price has jumped by 37.22%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • SANDISK CORP's earnings per share declined by 7.6% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SANDISK CORP increased its bottom line by earning $4.37 versus $1.69 in the prior year. This year, the market expects an improvement in earnings ($5.81 versus $4.37).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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