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Is Sanmina (SANM) a Great Value Stock Right Now?

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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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

One company to watch right now is Sanmina (SANM - Free Report) . SANM is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 8.87. This compares to its industry's average Forward P/E of 12.74. Over the past year, SANM's Forward P/E has been as high as 11.99 and as low as 5.55, with a median of 9.73.

We also note that SANM holds a PEG ratio of 0.74. 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 PEG compares to its industry's average PEG of 1.01. SANM's PEG has been as high as 1 and as low as 0.46, with a median of 0.81, all within the past year.

Another valuation metric that we should highlight is SANM's P/B ratio of 1.12. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.79. Within the past 52 weeks, SANM's P/B has been as high as 1.46 and as low as 0.79, with a median of 1.23.

Value investors will likely look at more than just these metrics, but the above data helps show that Sanmina is likely undervalued currently. And when considering the strength of its earnings outlook, SANM sticks out at as one of the market's strongest value stocks.


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