Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Sanmina as such a stock due to the following factors:
- SANM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.2 million.
- SANM has traded 284,491 shares today.
- SANM is trading at 10.53 times the normal volume for the stock at this time of day.
- SANM is trading at a new high 18.03% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on SANM:
Sanmina Corporation provides integrated electronics manufacturing services worldwide. SANM has a PE ratio of 16.2. Currently there are 4 analysts that rate Sanmina a buy, 1 analyst rates it a sell, and 2 rate it a hold.
The average volume for Sanmina has been 635,700 shares per day over the past 30 days. Sanmina has a market cap of $1.6 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.74 and a short float of 3.1% with 3.21 days to cover. Shares are up 16.6% year-to-date as of the close of trading on Monday.
rates Sanmina as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, reasonable valuation levels, good cash flow from operations and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- SANM's revenue growth has slightly outpaced the industry average of 3.5%. Since the same quarter one year prior, revenues slightly increased by 7.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry average. The net income increased by 10.6% when compared to the same quarter one year prior, going from $18.74 million to $20.72 million.
- Net operating cash flow has significantly increased by 129.60% to $151.74 million when compared to the same quarter last year. In addition, SANMINA CORP has also vastly surpassed the industry average cash flow growth rate of -15.19%.
- You can view the full Sanmina Ratings Report.