Sanmina (SANM) Dips More Than Broader Markets: What You Should Know
Sanmina (SANM) closed at $58.58 in the latest trading session, marking a -1.01% move from the prior day. This move lagged the S&P 500's daily loss of 0.9%. Elsewhere, the Dow lost 0.5%, while the tech-heavy Nasdaq lost 0.27%.
Prior to today's trading, shares of the electronics manufacturing services company had lost 10.47% over the past month. This has lagged the Computer and Technology sector's loss of 4.11% and the S&P 500's loss of 2.66% in that time.
Sanmina will be looking to display strength as it nears its next earnings release. In that report, analysts expect Sanmina to post earnings of $1.49 per share. This would mark year-over-year growth of 37.96%.
Any recent changes to analyst estimates for Sanmina should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Sanmina is holding a Zacks Rank of #1 (Strong Buy) right now.
Digging into valuation, Sanmina currently has a Forward P/E ratio of 10.53. Its industry sports an average Forward P/E of 10.53, so we one might conclude that Sanmina is trading at a no noticeable deviation comparatively.
Also, we should mention that SANM has a PEG ratio of 0.88. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Manufacturing Services was holding an average PEG ratio of 0.7 at yesterday's closing price.
The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 3, putting it in the top 2% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SANM in the coming trading sessions, be sure to utilize Zacks.com.
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Sanmina Corporation (SANM) : Free Stock Analysis Report
