On July 16, the company reported strong Q2 results. Solid-state drive (SSD) sales jumped 97% and contributed 29% to total revenue. Zacks, which reiterated its “neutral” rating on shares on Aug. 14, pointed out that Apple (AAPL) remains a major customer, saying this will help the company outperform the competition.
Analysts’ consensus estimate is for earnings of $5.92 per share in 2014 and $6.68 in 2015, with a mean price target of $113.39.
SDNK has tracked its 50-day moving average for over a year. But the market correction in July dropped it through this average on a gap from $105.74 to $100 on July 17. Since then, it has consolidated in a shallow saucer with the breakout top of the pattern at the 50-day moving average, now at $98.36. MACD has issued a strong buy signal.
Buy SNDK at the market with a trading target of $105. Enter a stop-loss order at $94.50.