Sanmina (SANM) Showing Signs Of A Dead Cat Bounce Today

Trade-Ideas LLC identified Sanmina ( SANM) as a "dead cat bounce" (down big yesterday but up big today) 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 $18.4 million.
  • SANM has traded 199,199 shares today.
  • SANM is up 3.2% today.
  • SANM was down 15.2% yesterday.

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More details on SANM:

Sanmina Corporation provides integrated manufacturing solutions, components, products and repair, logistics, and after-market services worldwide. SANM has a PE ratio of 6. Currently there are 2 analysts that rate Sanmina a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Sanmina has been 585,800 shares per day over the past 30 days. Sanmina has a market cap of $2.1 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.03 and a short float of 1.7% with 1.79 days to cover. Shares are up 20% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Sanmina as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, notable return on equity, attractive valuation levels and compelling growth in net income. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • SANM's revenue growth has slightly outpaced the industry average of 2.9%. Since the same quarter one year prior, revenues slightly increased by 8.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Powered by its strong earnings growth of 31.03% and other important driving factors, this stock has surged by 37.25% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SANM should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, SANMINA CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • 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 20.7% when compared to the same quarter one year prior, going from $24.48 million to $29.53 million.

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