Core Insights - The artificial intelligence sector is seeing renewed investor interest as the Nasdaq attempts to recover above its 50-day moving average heading into December [1] - Strong earnings growth and anticipated Federal Reserve interest rate cuts are supporting a bullish outlook for the stock market, encouraging investors to re-enter [2] - Investors are advised to focus on stocks that have demonstrated resilience in the current market environment rather than on beaten-down stocks [3] Stock Screening Methodology - A screening method using the Research Wizard identifies Zacks Rank 1 (Strong Buy) stocks, narrowing down to those with upward price momentum and trading within 20% of their 52-week highs [4][5] - The screening criteria include a PEG ratio of less than or equal to 1, a Price to Sales ratio of less than or equal to 3, and a percentage price change over the last 12 weeks [8] Featured Stock: Sanmina Corporation (SANM) - Sanmina Corporation is highlighted as a leading integrated manufacturing tech solutions firm, recently acquiring ZT Systems to enhance its capabilities in the Cloud and AI markets [6][7] - The company reported a 7% increase in sales and a 14% rise in adjusted earnings year-over-year for Q4 FY25, with projections indicating a 72% revenue increase in FY26 and a 60% boost in adjusted earnings [9][10] - SANM stock has appreciated 100% in 2025 and 560% over the past decade, outperforming the tech sector's 405% growth [11]

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Revenue Composition - Integrated Manufacturing Solutions (IMS) generated approximately 80% of total revenue in 2025[14] - Components, Products and Services (CPS) accounted for about 20% of total revenue in 2025[14] - Sales to the ten largest customers represented 52% of net sales in 2025, indicating a significant reliance on major clients for revenue generation[67] - Sales to the ten largest customers historically represent approximately 50% of net sales, indicating a reliance on a small number of customers for revenue[105] - Approximately 80% of net sales are generated from products manufactured in foreign operations, reflecting a strategy to leverage lower-cost manufacturing locations[191] Market Focus and Strategy - The company targets high-growth markets such as industrial, medical, defense and aerospace, and automotive, which require higher value-added services[25] - The company aims to increase the number of manufacturing programs with multiple solutions to improve margins and profitability[18] - The company emphasizes attracting long-term partnerships with growth industry leaders to leverage its advanced electronics manufacturing capabilities[23] - The company is committed to pursuing strategic transactions to access new customers and technologies[26] - The company aims to diversify into mission-critical markets and develop higher technology products with longer life cycles to drive future growth[194] Manufacturing and Technology - The company is focused on extending technology capabilities and enhancing manufacturing processes to provide a competitive advantage[19] - The global manufacturing network allows the company to offer flexibility and optimize costs for customers[36] - The company provides integrated manufacturing solutions including Printed Circuit Board Assembly (PCBA) and testing, focusing on technologies like surface mount technology (SMT) and pin-through-hole assembly (PTH) to meet customer needs for complex electronic systems[43] - The company emphasizes a vertically integrated manufacturing strategy, providing end-to-end solutions that include product design, engineering, and post-manufacturing services[62] - The company plans to continue investing in factory automation, process improvements, and artificial intelligence to enhance operational efficiency[191] Workforce and Employment - The company has approximately 39,000 employees, with 55% in the Americas, 36% in APAC, and 9% in EMEA[80][81] - The average tenure of employees is approximately eight years, with about 30% having been employed for over ten years[89] - Approximately 49% of the global workforce is female, and non-Caucasian employees account for approximately 60% of the U.S. employee base[91] - Recruiting and retaining key personnel is critical for growth, with challenges in the current employment market[150] Environmental and Regulatory Compliance - The company operates globally with a focus on compliance with environmental regulations, including wastewater treatment systems at PCB manufacturing plants[72] - The company is subject to complex regulations regarding export controls and government contracts, which require extensive compliance efforts and could lead to significant penalties if violated[79] - The company has implemented standardized environmental management systems across manufacturing facilities, with nearly all certified under ISO 14001[74] - Environmental liabilities have been incurred due to acquisitions, with ongoing investigations and remediation activities at several sites, including locations in New York and California[77] - The company operates under environmental permits that require periodic renewal and are subject to revocation for violations, which could adversely affect production[76] Financial Performance and Risks - The company has never declared or paid cash dividends and plans to retain future earnings for operations, business expansion, and debt repayments[181] - The company's liquidity is dependent on factors such as profitability, business volume, and the timing of acquisitions, with no assurance that additional liquidity will be available on acceptable terms if needed[130] - The company faces significant uncertainties in operating results due to factors such as intense competition, regulatory changes, and supply chain disruptions[101][102] - The company is exposed to risks from fluctuations in currency exchange rates, which may affect operating costs[107] - Changes in financial accounting standards could significantly affect the company’s reported financial results and require adjustments to estimates and assumptions[125] Acquisitions and Investments - The company acquired the data center infrastructure manufacturing business of ZT Systems in October 2025, aiming to enhance its capabilities in large-scale data center rack deployments[137] - The acquisition of ZT Group Int'l, Inc. (ZT Systems) was completed for an aggregate consideration of $1.6 billion, including $1.46 billion in cash and contingent cash consideration of up to $450 million based on financial metrics[195] - The acquisition of ZT Systems involves risks such as integration difficulties, quality issues, and potential loss of key employees, which could impact profitability[140] - Future divestitures may reduce revenue and margins, with risks of retained liabilities from divested operations[141] Cybersecurity and Operational Risks - Cybersecurity measures may not be sufficient to protect sensitive data, exposing the company to legal liability and reputational damage[121] - The company’s operations could be disrupted by cyberattacks, which may lead to significant losses and impact customer relationships[121] - The company experienced a temporary disruption in worldwide manufacturing operations due to a misconfigured system update by a network security vendor in July 2024[120] Tax and Financial Liabilities - Changes in tax rates and audits could increase tax expenses, potentially reducing net income; cumulative net operating loss carryforwards as of September 27, 2025, are $200 million for state and $481 million for foreign[146] - The effective tax rate is influenced by the geographic distribution of income, tax regulations, and the effectiveness of tax planning strategies[210] - The company estimates its income tax provision based on various factors, including past experience and tax law interpretations, with a focus on maintaining adequate accruals for tax liabilities[206]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher, capitalizing on established price movements [1] Company Overview: Sanmina (SANM) - Sanmina currently holds a Momentum Style Score of B, indicating a favorable momentum characteristic [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [3] Performance Metrics - Over the past week, Sanmina's shares have increased by 24.27%, significantly outperforming the Zacks Electronics - Manufacturing Services industry, which rose by only 0.68% [5] - In a longer timeframe, Sanmina's shares have risen by 39.15% over the past month, compared to the industry's 21.64% [5] - Over the last three months, Sanmina's shares have increased by 48.56%, and they have surged by 109.2% over the past year, while the S&P 500 has only moved 7.27% and 15.21% respectively [6] Trading Volume - Sanmina's average 20-day trading volume is 767,784 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, two earnings estimates for Sanmina have been revised upwards, while none have been revised downwards, leading to an increase in the consensus estimate from $6.94 to $9.64 [9] - For the next fiscal year, one estimate has moved upwards with no downward revisions noted [9] Conclusion - Given the strong performance metrics and positive earnings outlook, Sanmina is positioned as a 1 (Strong Buy) stock with a Momentum Score of B, making it a compelling investment opportunity [11]

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum characteristics, helping investors identify stocks likely to outperform the market in the short term [2][3] - Each stock is rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Score identifies attractive and discounted stocks using various financial ratios such as P/E and Price/Sales [3] Growth Score - The Growth Score focuses on a company's financial health and future outlook, analyzing projected and historical earnings and cash flow [4] Momentum Score - The Momentum Score capitalizes on price trends, using factors like recent price changes and earnings estimate revisions to identify high-momentum stocks [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors seeking the best value, growth, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to help build successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [7][8] - There are over 800 stocks rated 1 or 2, making it essential for investors to utilize Style Scores to narrow down their choices [8][9] Stock Highlight: Sanmina Corporation - Sanmina Corporation, based in San Jose, CA, is a global provider of electronics contract manufacturing services, serving various industries including medical and aerospace [11] - Sanmina has a Zacks Rank of 1 (Strong Buy) and a VGM Score of A, with a Momentum Style Score of B, reflecting a 39.2% increase in share price over the past four weeks [12] - Analysts have revised earnings estimates upwards for fiscal 2026, with the Zacks Consensus Estimate rising from $2.70 to $9.64 per share, and an average earnings surprise of +5.4% [12][13]

Core Insights - Sanmina's third-quarter results exceeded Wall Street expectations, driven by strong revenue growth and improved non-GAAP earnings per share [1][3] - The company experienced heightened demand in communication networks and cloud and AI infrastructure segments, benefiting from a favorable product mix and operational efficiencies [1][3] - Ongoing investments in technology and capacity are positioning Sanmina for continued growth, as highlighted by CEO Jure Sola [1] Financial Performance - Revenue for Q3 was $2.10 billion, surpassing analyst estimates of $2.05 billion, reflecting a 3.9% year-on-year growth and a 2.2% beat [6] - Adjusted EPS was reported at $1.67, exceeding analyst expectations of $1.57, marking a 6.7% beat [6] - Adjusted EBITDA reached $154.9 million, with a margin of 7.4%, also beating analyst estimates of $151.5 million [6] Guidance and Market Outlook - Revenue guidance for Q4 is set at $3.05 billion at the midpoint, significantly above analyst estimates of $2.13 billion [6] - Adjusted EPS guidance for Q4 is projected at $2.10 at the midpoint, again above analyst expectations of $1.69 [6] - The operating margin for the quarter was 5.2%, consistent with the same quarter last year [6] Analyst Insights - CFO Jonathan Faust confirmed ZT Systems is operating at a $5–6 billion annual run rate with margins aligned with Sanmina's guidance [6] - Expectations for mid-single-digit growth in the legacy business are anticipated in the first quarter, with acceleration to high single digits later [6] - CEO Jure Sola indicated that Sanmina is expanding engineering and integrating teams to capitalize on opportunities in partnership with AMD [6] AI and Future Opportunities - Sanmina's pipeline for AI opportunities is strong, positioning the company to compete in data center AI for the coming years [6]

Core Viewpoint - Investors are encouraged to consider Sanmina (SANM) due to solid improvements in earnings estimates and positive short-term price momentum [1][10] Earnings Estimates - Analysts have shown growing optimism regarding Sanmina's earnings prospects, leading to higher estimates that are expected to positively impact the stock price [2] - The consensus earnings estimate for the current quarter is $2.15 per share, reflecting a year-over-year increase of +49.3% [6] - Over the past 30 days, the Zacks Consensus Estimate for Sanmina has risen by 22.76%, with no negative revisions reported [6] - For the full year, the expected earnings per share is $9.64, indicating a change of +59.6% from the previous year [7] - The consensus estimate for the current year has increased by 32.42% over the same time frame [8] Zacks Rank - Sanmina has achieved a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions, which is a strong indicator for potential stock performance [9] - The Zacks Rank system has a proven track record, with Zacks 1 Ranked stocks averaging an annual return of +25% since 2008 [3] Stock Performance - Sanmina's stock has gained 32.3% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects [10]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum characteristics [2][3] Zacks Style Scores Overview - The Style Scores categorize stocks into ratings of A, B, C, D, or F, with A indicating the highest potential for outperformance [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [4] - The Growth Score assesses a company's financial health and future growth potential through earnings and sales projections [5] - The Momentum Score identifies stocks with favorable price trends and earnings outlooks [6] VGM Score - The VGM Score combines Value, Growth, and Momentum Scores to highlight stocks with the best overall potential [6] Zacks Rank Integration - The Zacks Rank utilizes earnings estimate revisions to guide investors in stock selection, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988 [7][8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [9][10] Company Spotlight: Sanmina Corporation - Sanmina Corporation, based in San Jose, CA, specializes in electronics contract manufacturing and offers comprehensive supply chain solutions across various sectors [11] - Currently rated 3 (Hold) by Zacks, Sanmina has a VGM Score of B and a Growth Style Score of A, with projected year-over-year earnings growth of 38.1% for the current fiscal year [12] - The Zacks Consensus Estimate for Sanmina's earnings has increased by $1.40 to $8.34 per share, with an average earnings surprise of +5.4% [12][13]

Core Insights - Sanmina Corporation (SANM) reported strong fourth-quarter fiscal 2025 results, with both revenue and net income exceeding the Zacks Consensus Estimate [1][4] Financial Performance - Net income on a GAAP basis for the quarter was $48.1 million or $0.88 per share, down from $61.4 million or $1.09 per share in the prior-year quarter, impacted by higher operating expenses and income taxes [2] - Non-GAAP net income for the quarter was $91.5 million or $1.67 per share, compared to $80.3 million or $1.43 in the prior-year quarter, surpassing the Zacks Consensus Estimate of $1.57 [2] - For the full fiscal year 2025, GAAP net income was $245.9 million or $4.46 per share, up from $222.5 million or $3.91 per share in 2024 [3] Revenue Growth - Net sales for the fourth quarter increased to $2.09 billion from $2.01 billion year-over-year, driven by growth across multiple end markets, beating the consensus estimate by $46 million [4] - For fiscal year 2025, revenues rose to $8.13 billion from $7.56 billion in 2024 [4] - The Integrated Manufacturing Solutions segment generated $1.68 billion in revenues, up 3.3% year-over-year, contributing 80.2% to total revenues, with strong sales growth in communications networks, cloud, and AI infrastructure [4] Segment Performance - Components, Products and Services revenues increased to $448 million, up 7.3% year-over-year, supported by growth in several end markets [5] - Industrial & Energy, Medical, Defense & Aerospace, and Automotive markets generated $1.247 billion in revenues, slightly down from $1.253 billion [5] - Communications Networks and Cloud Infrastructure generated $849 million, up from $765 million a year ago [5] Operational Efficiency - Non-GAAP gross profit was $196.4 million compared to $175.5 million in the year-ago quarter, driven by a favorable mix and improved operational efficiency [6] - Non-GAAP operating income totaled $126.4 million, up from $107.3 million in the prior-year period, with a non-GAAP operating margin of 6%, slightly up from 5.6% [6] Cash Flow and Liquidity - In the fourth quarter, Sanmina generated $199.1 million of net cash from operating activities, compared to $51.9 million in the previous year's quarter [10] - For the full year 2025, the company generated $620.7 million in cash, up from $340.2 million in 2024 [10] - As of September 27, 2025, Sanmina had $926.3 million in cash and cash equivalents and $282.3 million in long-term debt [10] Future Outlook - For the first quarter of fiscal 2026, revenues are projected to be in the range of $2.05 billion to $2.15 billion, with non-GAAP earnings per share expected between $1.95 and $2.25 [11]

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - Denny's Corporation (DENN) is up 49% at $6.16 [3] - Cambium Networks Corporation (CMBM) is up 25% at $2.55 [3] - Tactile Systems Technology, Inc. (TCMD) is up 22% at $19.35 [3] - Upwork Inc. (UPWK) is up 19% at $18.60 [3] - Kforce Inc. (KFRC) is up 12% at $27.50 [3] - Super Group (SGHC) Limited (SGHC) is up 12% at $11.91 [3] - Innovex International, Inc. (INVX) is up 10% at $22.62 [3] - Sanmina Corporation (SANM) is up 9% at $154.03 [3] - Exact Sciences Corporation (EXAS) is up 8% at $72.69 [3] - OTG Acquisition Corp. I Class A Ordinary Share (OTGA) is up 7% at $10.77 [3] Premarket Losers - Sarepta Therapeutics, Inc. (SRPT) is down 40% at $14.44 [4] - JELD-WEN Holding, Inc. (JELD) is down 32% at $2.81 [4] - Ichor Holdings, Ltd. (ICHR) is down 29% at $16.05 [4] - Insperity, Inc. (NSP) is down 27% at $32.50 [4] - Prelude Therapeutics Incorporated (PRLD) is down 22% at $3.08 [4] - Forward Industries, Inc. (FORD) is down 20% at $11.11 [4] - Navitas Semiconductor Corporation (NVTS) is down 18% at $10.03 [4] - Diginex Limited (DGNX) is down 17% at $19.51 [4] - Atlas Energy Solutions Inc. (AESI) is down 16% at $10.58 [4] - Chijet Motor Company, Inc. (CJET) is down 15% at $3.24 [4]