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Is Sanmina (SANM) Stock Undervalued 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.

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.

One company value investors might notice is Sanmina (SANM - Free Report) . SANM is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 8.41, while its industry has an average P/E of 10.02. SANM's Forward P/E has been as high as 12.42 and as low as 7.47, with a median of 9.56, all within the past year.

Investors should also note that SANM holds a PEG ratio of 0.70. 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. SANM's industry has an average PEG of 1.20 right now. Over the past 52 weeks, SANM's PEG has been as high as 1.04 and as low as 0.62, with a median of 0.80.

Investors should also recognize that SANM has a P/B ratio of 1.32. The P/B is a method of comparing a stock's market value to 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 1.86. Over the past year, SANM's P/B has been as high as 1.49 and as low as 1.04, with a median of 1.32.

These are just a handful of the figures considered in Sanmina's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SANM is an impressive value stock right now.


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