Down Nearly 50% From Its High, Has Sandisk Stock Become a Cheap Buy?

SanDisk stock has fallen nearly 50% from its 52-week high despite reporting quarterly revenue growth of 372% year-over-year. The selloff was driven by forward guidance that came in below analyst expectations, sparking concerns about a potential slowdown in the memory and storage sector.

The stock now trades at 17x trailing earnings, well below the S&P 500's 26x multiple. The valuation gap suggests SNDK may be oversold relative to the broader market, particularly given the triple-digit revenue expansion in its most recent quarter.

The disconnect between strong trailing results and weak forward guidance creates a classic tension for investors. The 372% revenue surge indicates robust recent demand, but management's conservative outlook raises questions about whether that momentum can sustain. The compressed multiple reflects Wall Street's preference to price on the outlook rather than the rearview mirror.