Sanmina (SANM - Free Report) closed the most recent trading day at $31.52, moving -1.5% from the previous trading session. This change lagged the S&P 500's 0.53% loss on the day. Elsewhere, the Dow lost 0.47%, while the tech-heavy Nasdaq lost 1%.
Prior to today's trading, shares of the electronics manufacturing services company had gained 7.74% over the past month. This has outpaced the Computer and Technology sector's gain of 3.84% and the S&P 500's gain of 2.68% in that time.
SANM will be looking to display strength as it nears its next earnings release, which is expected to be July 29, 2019. In that report, analysts expect SANM to post earnings of $0.77 per share. This would mark year-over-year growth of 40%.
Investors might also notice recent changes to analyst estimates for SANM. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection remained stagnant. SANM is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note SANM's current valuation metrics, including its Forward P/E ratio of 9.82. For comparison, its industry has an average Forward P/E of 11.23, which means SANM is trading at a discount to the group.
We can also see that SANM currently has a PEG ratio of 0.82. 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. Electronics - Manufacturing Services stocks are, on average, holding a PEG ratio of 0.87 based on yesterday's closing prices.
The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 100, putting it in the top 40% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.