1 Year Since the Liberation Day Tariffs: This Surprising Stock Has Been the S&P 500's Top Performer

Reciprocal tariffs were announced a year ago, on what President Trump referred to as "Liberation Day" for the country. Tariffs were imposed on many countries that the president believed were being unfair to the U.S., and the initial market reaction was one of panic, with the S&P 500 proceeding to fall. In many ways, it was reminiscent of the 2020 crash during the early stages of the pandemic. Stocks tanked quickly but then would go on impressive runs.

While the S&P 500 has been struggling in the early part of 2026, it's still up around 16% over the past 12 months, as investors who stayed the course and remained invested in funds tracking the index would have done fairly well. And one stock within the index that's been downright amazing over the past year is Sandisk (NASDAQ: SNDK). It's up a mesmerizing 1,200%, making it easily the top-performing stock on the index since Liberation Day. The big question is whether it's still a buy right now.

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Why Sandisk has been a scorching-hot buy over the past 12 months

It was barely a year ago that Sandisk spun off from Western Digital, which is another tech stock that's done well over the past 12 months (it's up around 570%). The spinoff took place in February of last year, and Sandisk has been a terrific investment ever since. The move allowed Sandisk to focus on flash memory, which is a particularly high-growth area these days due to the relentless demand for artificial intelligence (AI) and models and agents needing access to high-speed storage solutions.

Sandisk's financials have looked incredible due to both higher demand and rising prices. In its most recent quarter, which ended on Jan. 2, the company's revenue totaled just over $3 billion, which was an increase of 61% year over year. And its bottom line was even more impressive, with net income jumping from just $104 million in the prior-year period to $803 million. And for the current quarter, the company expects even more growth, for its revenue to potentially climb as high as $4.8 billion.

Is Sandisk stock still a good buy today?

Sandisk's valuation doesn't appear expensive, even with its impressive rally. That's because analysts still have rosy expectations for what's ahead for the company, given the ongoing shortage of memory and storage products -- prices may continue rising. Based on analyst projections, Sandisk's stock is trading at less than 13 times its expected future earnings, which seems dirt cheap given that the average stock on the S&P 500 trades at a forward earnings multiple of 20.

The stock can still rise higher and be a good buy, but it's not an investment I'd simply buy and forget about. I'd suggest keeping a close eye on the market to see if prices are still rising for memory and storage products, because if there are signs of supply catching up with demand, that could quickly result in investors turning bearish on the stock.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Western Digital. The Motley Fool has a disclosure policy.