Sandisk Corporation (NASDAQ:SNDK) stock fell nearly 5% in Monday’s premarket session as investors turned cautious ahead of the company’s earnings report later this week.

Memory-chip peers also traded lower, with Micron Technology Inc. (NASDAQ:MU), Western Digital Corp. (NASDAQ:WDC) and SK hynix Inc. (NASDAQ:SKHY) also declining in premarket trading as weakness spread across the memory sector.

Meanwhile, Nasdaq futures edged up 0.03%, while S&P 500 futures gained 0.44%.

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Earnings In Focus

Sandisk is scheduled to report quarterly results on Aug. 5, putting the stock in focus ahead of the event.

Wall Street expects Sandisk to report earnings per share of $33.38 on revenue of $8.24 billion for the quarter.

A year earlier, the company reported earnings of 29 cents per share on revenue of $1.90 billion.

Technical Analysis

Sandisk remains in a long-term uptrend, although its short-term momentum has weakened.

The stock is trading 23.1% below its 20-day simple moving average and 32.1% below its 50-day simple moving average, reflecting a sharp pullback in recent weeks. However, it remains 37.7% above its 200-day simple moving average, indicating the longer-term trend is still intact.

The MACD indicator remains below its signal line, pointing to weakening momentum. Meanwhile, the 20-day moving average sits below the 50-day average, while the 50-day average remains above the 200-day average. That setup suggests near-term pressure persists even as the broader trend remains positive.

Key resistance stands near $1,331.94, around the 100-day simple moving average. Key support is near $1,004.68, close to the 200-day exponential moving average.

Analyst Outlook

The stock trades at about 41.5 times earnings, reflecting a premium valuation. Analysts maintain a consensus Buy rating with an average price forecast of $2,031.69. Recent research actions include:

  • Susquehanna maintained a Positive rating and lowered its price forecast to $3,050 on July 23.
  • Wells Fargo maintained an Equal-Weight rating and raised its price forecast to $1,620 on July 22.
  • Bank of America maintained a Buy rating and raised its price forecast to $2,500 on July 1.

Benzinga Edge Rankings

Sandisk carries a Momentum score of 99.9, highlighting its strong long-term price performance despite the recent pullback.

Its Value score of 11.07 indicates the shares continue to trade at a relatively rich valuation compared with the broader market.

ETF Exposure

Sandisk is a significant holding in several exchange-traded funds, including the Global X NASDAQ 100 Covered Call ETF (NASDAQ:QYLD), the Invesco S&P 500 Pure Growth ETF (NYSE:RPG) and the First Trust US Equity Opportunities ETF (NYSE:FPX). As a result, fund inflows and outflows can influence demand for the stock.

Price Action

SNDK Stock Price Activity: Sandisk shares were down 4.61% at $1158.81 during premarket trading on Monday, according to Benzinga Pro data.

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