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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Sanmina (SANM - Free Report) is a stock many investors are watching right now. SANM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 10.43 right now. For comparison, its industry sports an average P/E of 14.12. SANM's Forward P/E has been as high as 11.59 and as low as 8.77, with a median of 9.30, all within the past year.
Investors will also notice that SANM has a PEG ratio of 0.77. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SANM's industry has an average PEG of 1.13 right now. SANM's PEG has been as high as 0.86 and as low as 0.58, with a median of 0.69, all within the past year.
We should also highlight that SANM has a P/B ratio of 1.53. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 4.02. Within the past 52 weeks, SANM's P/B has been as high as 1.67 and as low as 1.14, with a median of 1.39.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SANM has a P/S ratio of 0.42. This compares to its industry's average P/S of 0.55.
Finally, our model also underscores that SANM has a P/CF ratio of 9.18. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 10.27. Over the past 52 weeks, SANM's P/CF has been as high as 9.56 and as low as 6.25, with a median of 7.65.
These are only a few of the key metrics included in Sanmina's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, SANM looks like an impressive value stock at the moment.
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Is Sanmina (SANM) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Sanmina (SANM - Free Report) is a stock many investors are watching right now. SANM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 10.43 right now. For comparison, its industry sports an average P/E of 14.12. SANM's Forward P/E has been as high as 11.59 and as low as 8.77, with a median of 9.30, all within the past year.
Investors will also notice that SANM has a PEG ratio of 0.77. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SANM's industry has an average PEG of 1.13 right now. SANM's PEG has been as high as 0.86 and as low as 0.58, with a median of 0.69, all within the past year.
We should also highlight that SANM has a P/B ratio of 1.53. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 4.02. Within the past 52 weeks, SANM's P/B has been as high as 1.67 and as low as 1.14, with a median of 1.39.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SANM has a P/S ratio of 0.42. This compares to its industry's average P/S of 0.55.
Finally, our model also underscores that SANM has a P/CF ratio of 9.18. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 10.27. Over the past 52 weeks, SANM's P/CF has been as high as 9.56 and as low as 6.25, with a median of 7.65.
These are only a few of the key metrics included in Sanmina's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, SANM looks like an impressive value stock at the moment.