Top memory stocks like SanDisk (NASDAQ:SNDK), Micron (NASDAQ:MU) and Western Digital (NASDAQ:WDC) have jumped by triple digits this year, beating the S&P 500 and Nasdaq 100 indices.
SanDisk has surged 553%, pushing its valuation above $233 billion. Micron and Western Digital have also climbed sharply, gaining 227% and 160%, respectively. Meanwhile, the Roundhill Memory ETF (CBOE: DRAM) has nearly doubled since its launch on April 2.
Still, despite these rallies, the companies remain highly undervalued using popular metrics. SanDisk has a forward price-to-earnings ratio of 7.45, much higher than the technology sector median of 23. This figure is also much lower than the S&P 500 Index’s average of 21.
Micron also has a forward PE ratio of 13.1, also much lower than the five-year average of 74. Its forward PEG ratio was 0.08, also lower than the technology sector median of 0.68.
Western Digital, SanDisk’s former parent company, has a forward PE ratio of 22. Other memory companies, such as Samsung, SK Hynix, and Seagate Technologies, are also trading at bargain levels.
