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Sanmina (SANM) Dips More Than Broader Markets: What You Should Know

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Sanmina (SANM - Free Report) closed the most recent trading day at $55.32, moving -1.5% from the previous trading session. This change lagged the S&P 500's daily loss of 1.17%. At the same time, the Dow lost 1.02%, and the tech-heavy Nasdaq lost 2.45%.

Prior to today's trading, shares of the electronics manufacturing services company had lost 12.07% over the past month. This has lagged the Computer and Technology sector's loss of 8.27% and the S&P 500's loss of 5.25% 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%.

Investors should also note any recent changes to analyst estimates for Sanmina. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 currently has a Zacks Rank of #1 (Strong Buy).

Digging into valuation, Sanmina currently has a Forward P/E ratio of 9.99. For comparison, its industry has an average Forward P/E of 9.99, which means Sanmina is trading at a no noticeable deviation to the group.

Meanwhile, SANM's PEG ratio is currently 0.83. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SANM's industry had an average PEG ratio of 0.66 as of yesterday's close.

The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 1, putting it in the top 1% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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