There's a Growth Stock Trading at Value Prices
Last February, SanDisk (NASDAQ: SNDK) completed its spinoff from Western Digital (NASDAQ: WDC), debuting at a price of $35.06 per share. In less than a year, the memory chip company's share price has surged by nearly 560%, to around $230 per share.
Even after this big rally, shares appear undervalued, relative to expected growth in the coming year. The market may be skeptical that the favorable growth tailwind behind SanDisk's strong performance will last for much longer, but there are indications to the contrary. If this happens, shares could not only hold on to this year's gains but add to them in the quarters ahead.
During the first few months following the spinoff, SanDisk experienced mixed price performance. However, this changed during the late summer. That's when the market caught on to how AI-related demand for NAND flash memory chips was quickly outstripping supply.
Source Fool.com
