In the latest trading session, Sanmina (SANM) closed at $30.68, marking a +0.69% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.62%. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq lost 0.74%.
Heading into today, shares of the electronics manufacturing services company had gained 2.21% over the past month, lagging the Computer and Technology sector's gain of 3.47% and the S&P 500's gain of 2.8% in that time.
Investors will be hoping for strength from SANM as it approaches its next earnings release. On that day, SANM is projected to report earnings of $0.77 per share, which would represent year-over-year growth of 40%.
It is also important to note the recent changes to analyst estimates for SANM. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. SANM currently has a Zacks Rank of #3 (Hold).
Investors should also note SANM's current valuation metrics, including its Forward P/E ratio of 9.35. This represents a discount compared to its industry's average Forward P/E of 10.68.
Meanwhile, SANM's PEG ratio is currently 0.78. 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 0.85 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 102, which puts it in the top 40% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Sanmina Corporation (SANM) : Free Stock Analysis Report
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