Sanmina (SANM) Gains But Lags Market: What You Should Know
In the latest trading session, Sanmina (SANM) closed at $62.66, marking a +0.29% move from the previous day. The stock lagged the S&P 500's daily gain of 1.43%. Meanwhile, the Dow gained 1.58%, and the Nasdaq, a tech-heavy index, added 0.03%.
Heading into today, shares of the electronics manufacturing services company had lost 7.59% over the past month, lagging the Computer and Technology sector's gain of 8.36% and the S&P 500's gain of 5.12% in that time.
Wall Street will be looking for positivity from Sanmina as it approaches its next earnings report date. On that day, Sanmina is projected to report earnings of $1.49 per share, which would represent 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 17.09% higher. Sanmina is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Sanmina is holding a Forward P/E ratio of 11.12. For comparison, its industry has an average Forward P/E of 11.12, which means Sanmina is trading at a no noticeable deviation to the group.
Meanwhile, SANM's PEG ratio is currently 0.93. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SANM's industry had an average PEG ratio of 0.73 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 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
