Sanmina (SANM - Free Report) closed the most recent trading day at $32.12, moving -1.02% from the previous trading session. This move lagged the S&P 500's daily loss of 0.53%. At the same time, the Dow lost 0.26%, and the tech-heavy Nasdaq lost 1.13%.
Heading into today, shares of the electronics manufacturing services company had gained 12.6% over the past month, outpacing the Computer and Technology sector's gain of 3.76% and the S&P 500's gain of 3.59% in that time.
Wall Street will be looking for positivity from SANM as it approaches its next earnings report date. On that day, SANM is projected to report earnings of $0.78 per share, which would represent year-over-year growth of 16.42%.
Any recent changes to analyst estimates for SANM should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. 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 9.72. For comparison, its industry has an average Forward P/E of 12.61, which means SANM is trading at a discount to the group.
Meanwhile, SANM's PEG ratio is currently 0.81. 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. Electronics - Manufacturing Services stocks are, on average, holding a PEG ratio of 0.86 based on yesterday's closing prices.
The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 108, which puts it in the top 43% 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.