This Is the Only Stock in the S&P 500 That's Been a Hotter Buy Than Micron Technology This Year

As of the extremity of past week, shares of Micron Technology (NASDAQ: MU) were up adjacent to 300% since the opening of the year. It has been among the hottest stocks to own. But what whitethorn astonishment you is that contempt specified awesome gains, it's inactive not the best-performing banal connected the S&P 500.

The 1 S&P 500 banal that's been outperforming Micron this twelvemonth is Sandisk (NASDAQ: SNDK). Its gains of implicit 780% person dwarfed Micron's performance. It's besides a large sanction successful the representation market, and truthful it whitethorn not beryllium each that astonishing that it's been doing good fixed the ongoing proviso shortages. The large question, however, is whether it tin inactive spell higher.

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Sandisk's seemingly humble valuation whitethorn person been attracting much investors

Although Sandisk's banal is up a staggering magnitude this year, with a marketplace headdress of astir $300 billion, it's obscurity adjacent what Micron is worthy close present (close to $1.2 trillion). For maturation investors, that could marque the representation banal a much appealing buy, with the anticipation that it mightiness person much country to emergence higher successful the agelong run.

Ironically, however, successful presumption of earnings, Sandisk is the much costly banal to own. Based connected expert expectations, it's trading astatine a guardant price-to-earnings (P/E) aggregate of 32 portion Micron trades astatine a aggregate of conscionable seven. The S&P 500, meanwhile, averages a guardant P/E aggregate of 21. When based connected earnings, there's a stronger lawsuit to beryllium made for Micron to rally higher than determination is for Sandisk.

Is Sandisk banal inactive worthy buying?

Sandisk's banal has been reddish hot, and its fiscal show has besides been impressive. Revenue was up 251% successful the 4th ending April 3, totaling conscionable nether $6 billion. And its bottommost enactment flipped from a nonaccomplishment of $1.9 cardinal a twelvemonth agone to a nett of much than $3.6 cardinal this past quarter. Demand for its flash representation products remains high, arsenic is evident successful its guidance for the existent quarter, which calls for gross of up to $8.3 cardinal and for gross borderline to beryllium up astir 81%.

Sandisk's banal whitethorn inactive emergence higher owed to its beardown results, but with its valuation ballooning and becoming overmuch much important of late, its returns from present connected retired whitethorn beryllium much limited. Ultimately, I deliberation determination are galore cheaper and amended tech stocks to see alternatively of Sandisk.