Bull of the Day: Sandisk (SNDK)

Sandisk (SNDK) is a Zack Rank #1 (Strong Buy) that develops, manufactures, and sells data storage devices and solutions built on NAND flash technology.Sandisk was originally a publicly traded company under the ticker SNDK before being acquired by Western Digital in 2016. Earlier this year, Western Digital spun off its flash business, bringing Sandisk back to the market as an independent company and relisting it on Nasdaq under the SNDK ticker.The stock has become one of the standout performers of 2025, and investors are watching closely to see whether 2026 can continue that momentum.About the CompanyFounded in 2024, Sandisk is headquartered in Milpitas, California. Its product lineup includes solid state drives for desktop and notebook PCs, gaming consoles, and set top boxes, along with flash based embedded storage used in mobile phones, tablets, notebooks, wearables, automotive systems, Internet of Things devices, industrial equipment, and connected home applications.SNDK is valued at $31 billion and has a Forward PE of 17. The stock has Zacks Style Scores of “D” in Value, but “A” in Momentum.Q3 Earnings BeatSandisk delivered a standout first quarter, easily topping expectations with EPS with a 37% EPS beat.  Revenue came in at $2.38 billion versus $2.12 billion expected and profitability improved meaningfully as gross margin climbed to 29.8%, up 3.6 points both sequentially and year-over-year.The company also reached net cash positive status six months ahead of schedule, with $1.44 billion in cash outweighing $1.35 billion in gross debt, while generating $448 million in adjusted free cash flow, a 19.4% margin, and reducing inventory to $1.91 billion from $2.08 billion.Guidance for the second quarter was even stronger, with Sandisk projecting EPS of $3.00–$3.40 versus $2.01 expected and revenue of $2.55–$2.65 billion versus $2.33 billion expected, alongside a sharp gross margin expansion to 41–43%. Management pointed to extremely tight supply-demand conditions expected through 2026 and into 2027, driving customers to sign multi-quarter agreements and pushing products onto allocation across markets.Demand remains broad, with data center revenue up 26% quarter over quarter, solid edge momentum from PC refresh cycles and AI-driven smartphone storage needs, and a strengthening consumer pipeline supported by new gaming partnerships heading into the holidays.Estimates Head HigherSandisk has seen positive analyst commentary from analysts that has come with updates and rising earnings estimates.For the current quarter, estimates have gone from $1.77 to $3.25, up 83% over the last 7 days. For next quarter, we see similar movement with estimates going from $1.45 to $3.63, a move of 120%.For the current year, estimates have gone from $6.31 to $12.59, a jump of 99%.The longer-term looks even more promising, with estimates for next year going from $10.39 to $24.04, an increase of 130%.Sandisk Corporation Price and Consensus Sandisk Corporation price-consensus-chart | Sandisk Corporation QuoteAnalyst price targets have been going higher with those estimates:Wedbush has an Outperform and price targets went from $220 to $260.Benchmark Reiterated their Buy, with a lift from $125 to $260.Goldman went from $140 to $280 with a Neutral rating.The Technical TakeSandisk has made a big run already, moving from the $50 area to $284 in just a few months. Investors understandably might not want to chase this stock higher, so let’s look at some entry levels on a pullback.21-day moving average: $22850-day: $172Fibonacci 50% retrace: $165Fibonacci 61.8% retrace: $136That stock has already pulled back to that 50-day MA, where it found aggressive buyers. Look for that $165-180 area as support as the bulls try to push the stock back to highs before the year is out.  In SummarySandisk (SNDK)has reemerged as a top momentum name in 2025 after its spin-off from Western Digital, supported by surging demand for NAND flash solutions and a powerful return to profitability.The company delivered a major earnings beat, issued bullish guidance, and highlighted tight supply-demand conditions that are expected to persist through 2026 and into 2027. Analysts have responded with sharply higher estimates and rising price targets, reflecting confidence in both near-term execution and longer-term growth potential.While the stock has already made an exceptional run, technical support levels offer potential entry points for investors looking to participate in the ongoing uptrend.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sandisk Corporation (SNDK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks