Sandisk Stock Is the Most Overbought Stock in History
SanDisk Corporation (SNDK) has been on a run that most stocks only dream about, but even the best sprinters eventually need to catch their breath. Shares fell 5.5% on Tuesday, June 16, after hitting a fresh 52-week high of $2,167.33, triggering concerns that the massive rally may be entering a cooling phase. The move had already…
SanDisk Corporation (SNDK) has been on a run that most stocks only dream about, but even the best sprinters eventually need to catch their breath. Shares fell 5.5% on Tuesday, June 16, after hitting a fresh 52-week high of $2,167.33, triggering concerns that the massive rally may be entering a cooling phase.
The move had already stretched so far that our own “Twitter Tom” flat-out labeled SanDisk one of the most overbought stocks in history after its relative strength index (RSI) briefly pushed above 99. The RSI measures the strength and speed of recent price moves on a 0 to 100 scale.
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Readings above 70 typically signal overbought conditions. An RSI above 90 is exceptionally rare, showing gains over the past 14 periods outweigh losses by roughly nine to one.
SNDK stock continues printing higher highs and higher lows on the year-to-date (YTD) chart; the moving average convergence divergence (MACD) holds above its signal line and has started climbing again, and together those two signals tell traders that the underlying bullish momentum has not completely walked out the door just yet.
After the pullback, $2,000 stands as the key support level to watch, while the recent record above $2,150 marks the resistance ceiling the stock needs to clear to prove the rally still has legs. So, let us see where the stock heads from here.
About SanDisk Stock
Headquartered in Milpitas, California, SanDisk develops, manufactures, and supplies data storage products and solutions built on NAND flash technology.
The company carries a market cap of $294.9 billion and offers a broad portfolio that includes SSDs, embedded storage solutions, removable memory cards, USB flash drives, wafers, and other storage-related components.
The stock’s recent performance has quite literally rewritten the record books. Shares soared 4,358.6% over the last 52 weeks, leaving most other stocks eating dust. Investors also pocketed a 39.7% gain over the past month alone, and the stock tacked on another 19.6% during the last five trading sessions.
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Investors have rewarded the growth story by paying a rich premium. SNDK stock is currently trading at 32.93 times forward adjusted earnings and 15.04 times sales, with both figures running above industry averages. This signals that Wall Street continues to bet heavily on the company’s prospects.
SanDisk Surpasses Q3 Earnings
After dropping its Q3 FY2026 results on April 30, SanDisk practically handed the bulls a megaphone. Shares jumped 3% on the day of the announcement itself, and as if that were not enough, the stock went ahead and tacked on another 8.3% in the very next trading session.
Revenue grew 251% year-over-year (YOY) to $5.95 billion, topping Wall Street’s $4.55 billion estimate. Non-GAAP EPS printed at $23.41, running well ahead of the $14.36 analyst estimate and marking a stunning reversal from the modest loss the company posted during the same period a year ago.
Digging a little deeper into the income statement, non-GAAP gross profit rocketed 1111.9% from the prior year to $4.7 billion. Non-GAAP operating income climbed to $4.2 billion from a nearly invisible $2 million in the comparable quarter. Moreover, non-GAAP net income closed the quarter at $3.7 billion, a complete 180 from the $43 million net loss the company was staring at during the prior year period.
Coming to the balance sheet, SanDisk wrapped up the quarter with $3.7 billion sitting in cash and cash equivalents and walked away carrying absolutely zero debt after fully repaying its term loan.
Management then turned around and served up a Q4 outlook that gave investors even more reason to stay in their seats. The company expects Q4 FY2026 revenue to land between $7.75 billion and $8.25 billion, with non-GAAP EPS between $30 and $33.
Analysts are not exactly playing it cool either. The Street expects Q4 FY2026 EPS to surge 158,950% YOY to $31.81. Full-year FY2026 bottom-line estimates currently stand at $64.01, indicating annual growth of 3,496.1%. And if that trajectory holds, analysts are already penciling in another 182.9% leap to $179.82 in FY2027.
What Do Analysts Expect for SanDisk Stock?
Analysts have steadily moved their targets higher as SanDisk continues to exceed expectations. Vijay Rakesh of Mizuho Securities raised his price target from $1,825 to $2,200 while reiterating a “Buy” rating. C J Muse of Cantor Fitzgerald also maintained a “Buy” rating and lifted his target from $1,800 to $2,900.
The optimism extends across Wall Street, with SNDK stock carrying an overall rating of “Strong Buy.” Among 21 analysts covering the name, 18 rate the stock a “Strong Buy,” one assigns it a “Moderate Buy,” and two suggest “Hold.”
Interestingly, the stock has already raced past Wall Street’s average price target of $1,863.06. Even so, some analysts believe the rally may have further room to run. The Street-high target of $3,250 implies a gain of 63.2% from current levels.
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On the date of publication, Aanchal Sugandh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
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