Sanmina Corp (NASDAQ:SANM) — This information technology company provides customized integrated manufacturing services to OEMs in the electronics industry.
Zacks research points out that this company is a compelling value, based on its well-managed fundamental financial situation. It is relatively liquid while a debt-to-equity ratio of 0.28 indicates low leverage, and compared to its industry it has exceptional profit margins. SANM stock’s trailing-12-month net margin of 6.2% surpasses the industry average of 2.5%.
It exceeded Zack’s earnings per share consensus estimate in two of its last three quarters, and its next quarterly report is due in November.
Standard & Poor’s currently has a four-star buy on the stock noting, as did Zacks, its past record of exceeding earnings estimates. S&P estimates EPS of $2.48 in fiscal year 2016 (Sep 30) and an increase to $2.61 in FY 2017, aided by share repurchases.
This volatile technology stock rose from a sell-off low under $16 in January to over $29 on Monday. It was close to $29 in July but gapped down to under $26 in July. However, it resumed its bull market and with steady advances, closed the gap by September.
Despite high volatility, since January SANM stock has held its bullish support line. In my opinion, this stock could pull back to under $28, perhaps even to $26, but that would provide an excellent price for a trade to over $33.
Buyers should enter a stop-loss order at $25. Investors should view Sanmina stock as a long-term purchase in a highly volatile investment, but one that could, over time, reward the buyers by double or more.
