Sanmina (SANM) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Sanmina (SANM) closed at $57.29, marking a -0.87% move from the previous day. This move lagged the S&P 500's daily loss of 0.25%. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq added 5.91%.
Heading into today, shares of the electronics manufacturing services company had lost 14.21% over the past month, lagging the Computer and Technology sector's loss of 3.63% and the S&P 500's loss of 2.59% in that time.
Investors will be hoping for strength from Sanmina as it approaches 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. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% 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.
In terms of valuation, Sanmina is currently trading at a Forward P/E ratio of 10.28. Its industry sports an average Forward P/E of 10.28, 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 0.86. 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 industry currently had an average PEG ratio of 0.69 as of yesterday's close.
The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 4, which puts it in the top 2% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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
