SanDisk Stock Is Up 2,640% in the Past Year. What’s Next?

• SanDisk (SNDK) demonstrates exceptional price momentum, achieving a 2,640.57% gain over the past year.
• Shares are trading at a new all-time high.
• SNDK maintains a 100% “Buy” technical opinion from Barchart.
• Given extreme volatility, position sizing and risk management should rely on the 100-day moving average rather than tight stop losses.

Today’s Featured Stock

Valued at $125.72 billion, SanDisk (SNDK) develops, manufactures, and sells data storage devices that use NAND flash technology. The company offers solid-state devices for desktop and notebook PCs, gaming consoles, and set top boxes; and flash-based embedded storage products for mobile phones. It sells products to computer manufacturers, original equipment manufacturers, data centers, private cloud customers, and cloud service providers. 

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. SNDK checks those boxes. The Trend Seeker issued a new “Buy” signal on April 6. Since then, the stock has gained 17.55%.

Barchart Technical Indicators for SanDisk

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

SanDisk scored an all-time high of $873.95 on April 10.

• SanDisk has a Weighted Alpha of +1,604.82.
• SNDK has a 100% “Buy” opinion from Barchart.
• The stock has gained 2,640.57% over the past 52 weeks.
• SanDisk has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $851.77 with a 50-day moving average of $648.12.
• SNDK has made 10 new highs and gained 37.63% over the past month.
• Relative Strength Index (RSI) is at 68.29.
• There’s a technical support level around $833.38.

Don’t Forget the Fundamentals

• $125.72 billion market capitalization.
• 138.47x price-earnings ratio.
• Analysts project an increase in revenue of 116.08% this year and another 79.65% next year.
• Earnings are estimated to increase 1,306.66% this year and an additional 133.17% next year.

Analyst and Investor Sentiment on SanDisk

• The Wall Street analysts followed by Barchart give the stock 14 “Strong Buy,” 1 “Moderate Buy,” and 5 “Hold” opinions with price targets between $450 and $1,250.
• Value Line does not rate the stock but has 3-5-year price targets between $790 and $1,190 and advises its reader to “buy and hold” for the long term.
• CFRA’s MarketScope rates the stock a “Hold.”
• Morningstar thinks the stock is fairly valued.
• 24,670 investors are following the stock on Seeking Alpha, which rates it a “Strong Buy.”
• Short interest is 5.48% of the float with 1.00 days to cover the float.

The Bottom Line on SanDisk

SanDisk is among a small number of stocks including AXT (AXTI) and Lumentum (LITE) that have numbers that are just hard to believe but have made the investors who believed in them a fortune in the past year. Normally, my advice is if you decide to buy, keep your stop losses tight, but not here. Because these stocks have extreme volatility tight stop losses won’t work. Instead I’d use the 100-day moving average to be safe. 

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.