Industry Overview - The electronics manufacturing services (EMS) industry is currently ranked in the top 3% of the Zacks Industry Rank, indicating strong performance and potential for growth [1] - The industry has delivered a remarkable 98.1% return over the past year and an astonishing 105.9% year-to-date return, suggesting it is expected to outperform the market in the next three to six months [2] Company Highlights Celestica Inc. (CLS) - Celestica is one of the largest EMS companies globally, focusing on high-value markets and product diversification, which is supported by strong R&D capabilities [7][8] - The company is experiencing robust growth in its Connectivity & Cloud Solutions segment, particularly in its Hyperscaler Portfolio Solutions and optical programs, driven by increasing demand for 800G and 400G network switches [9] - For 2025, Celestica anticipates revenues of approximately $12.2 billion, up from a previous estimate of $11.55 billion, with expected non-GAAP adjusted earnings of $5.90 per share [12] - The expected revenue and earnings growth rates for Celestica are 31.4% and 39%, respectively, for the next year, with a 15.6% improvement in the Zacks Consensus Estimate for next year's earnings [13] Jabil Inc. (JBL) - Jabil is a leading global supplier of EMS solutions, benefiting from strong momentum in capital equipment, AI-powered data center infrastructure, and digital commerce [14][15] - The company plans to invest $500 million to expand its manufacturing capabilities for the AI data center vertical, enhancing its position in the AI hardware supply chain [17] - Jabil's projected revenues for fiscal 2026 are $32.4 billion, with expected non-GAAP earnings per share of $11.55 and over $1.3 billion in adjusted free cash flow [22] - The expected revenue and earnings growth rates for Jabil are 8.8% and 18.5%, respectively, for the current year, with a 4.5% improvement in the Zacks Consensus Estimate for the current year's earnings [23] Sanmina Corp. (SANM) - Sanmina is a global provider of electronics contract manufacturing services, focusing on complex components and end-to-end supply chain solutions across various industries [24] - The company is benefiting from strong demand in communications networks, cloud, and AI infrastructure, with a vertically integrated manufacturing process that streamlines operations and reduces costs [25][26] - For the first quarter of fiscal 2026, Sanmina expects revenues between $2.05 billion and $2.15 billion, with non-GAAP earnings per share estimated between $1.95 and $2.25 [28] - The expected revenue and earnings growth rates for Sanmina are 72.2% and 59.6%, respectively, for the current year, with a 38.9% improvement in the Zacks Consensus Estimate for the current year's earnings [29]

Core Insights - Sanmina Corporation (SANM) is focusing on 42Q connected manufacturing to enhance data integration from global factories and suppliers, improving decision-making and visibility across manufacturing processes [1][3] Group 1: 42Q Connected Manufacturing - The unified data ecosystem consolidates supply data into a single manufacturing data lake, enabling faster planning and improved responsiveness to market changes [2] - Real-time data analytics optimize inventory, reduce downtime, and enhance order flow, while also improving quality monitoring to respond quickly to deviations [2] - Sanmina has implemented 42Q in over 70 factories across 15 countries, connecting more than 35,000 manufacturing devices in the cloud [3] Group 2: Competitive Landscape - Sanmina faces competition from Jabil, Inc. (JBL) and Celestica Inc. (CLS) in the electronic manufacturing services sector [4][5] - Jabil reported revenues of $8.3 billion, up from $6.96 billion year-over-year, driven by demand in healthcare, packaging, and AI-related sectors [4] - Celestica's quarterly revenues reached $3.19 billion, a 27.8% increase year-over-year, supported by strong demand for networking products and AI-driven data center investments [5] Group 3: Financial Performance and Valuation - Sanmina's stock has increased by 104.1% over the past year, slightly below the industry's growth of 105% [6] - The company trades at a forward price-to-sales ratio of 0.58, which is lower than the industry average of 0.89 [7] - The Zacks Consensus Estimate for Sanmina's earnings for 2025 has increased by 38.9% over the past 60 days [8]

Core Insights - Sanmina Corporation is transitioning from a low-margin electronics manufacturer to a significant player in the AI hardware sector, indicating a strategic shift towards higher-margin opportunities [1] Company Analysis - Sanmina's increasing involvement in AI positions it as a potential leader in the growing AI hardware market, reflecting a robust financial profile and a focus on innovation [1] - The company employs a quantamental analysis approach, combining data-driven models with fundamental research to identify investment opportunities [1] Investment Thesis - The article emphasizes the importance of making unique investment ideas accessible to both retail and professional investors, highlighting the analytical depth of the research conducted on Sanmina [1]

Core Insights - Sanmina is positioned to become a significant player in the AI sector, particularly in collaboration with AMD, following a $3 billion acquisition of ZT Systems' data center business [1] Group 1: Company Developments - The acquisition of ZT Systems' data center business is a strategic move for Sanmina, enhancing its capabilities in the AI market [1] - The investment group "Value In Corporate Events" focuses on identifying opportunities in major corporate events such as IPOs, mergers, and earnings reports, providing insights for potential investors [1] Group 2: Market Context - The article emphasizes the importance of tracking catalytic company events to uncover investment opportunities, indicating a proactive approach to market analysis [1]

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.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 tri ...

Core Insights - Sanmina Corporation (SANM) has launched a new factory in Houston, TX, aimed at producing high-quality energy products for the U.S. energy market, with production expected to start in 2027 [1] - The company has entered into a partnership with Koncar - Electrical Industry Inc. to co-design a custom medium-voltage transformer, enhancing its focus on energy markets [2] - Sanmina is strategically expanding into high-growth industries, particularly the energy sector, leveraging its global network and advanced electronics manufacturing expertise [3] Company Performance - Sanmina's stock has increased by 89.2% over the past year, slightly outperforming the industry growth of 86% [6] - The company operates a vertically integrated manufacturing model that reduces costs and enhances economies of scale, supporting its growth in high-demand sectors [6] - Sanmina's forward price-to-sales ratio stands at 0.55, which is below the industry average of 0.84, indicating potential undervaluation [7] Earnings Estimates - The Zacks Consensus Estimate for Sanmina's earnings for 2025 has seen upward revisions over the past 60 days, reflecting positive market sentiment [8] - The earnings estimates for Q1 and Q2 are currently at $2.15 and $2.36 respectively, with significant upward revisions of 27.22% and 38.82% over the past two months [9]

Market Overview - The U.S. equity markets have experienced a downtrend, marked by a four-day losing streak due to concerns over economic health and high valuations of AI firms [1] - Job additions in November were better than expected at 64,000, surpassing the forecast of 45,000, yet the unemployment rate rose to a four-year high of 4.6%, raising doubts about the economy's state [1] Oil Market Impact - Crude oil prices in the U.S. have fallen to their lowest levels since 2021, influenced by a looming surplus in the market, adding to investor concerns [2] Investment Strategies - Investors are advised to consider momentum stocks as a strategy to navigate current market volatility, with examples including Dillard's, Inc. (DDS), Sanmina Corporation (SANM), and CommScope Holding Company, Inc. (COMM) [2] - Momentum investing is characterized by the principle of "buying high and selling higher," capitalizing on established trends [3] Momentum Stock Screening - A screening strategy has been developed to identify momentum anomaly stocks, focusing on the top 50 stocks with the best percentage price change over the last 52 weeks [5] - From these, the bottom 10 performers over the past week are selected to identify those experiencing short-term pullbacks [6] - Stocks with a Zacks Rank 1 (Strong Buy) and a Momentum Style Score of B or better are prioritized, indicating a higher probability of success [7] Selected Stocks - Dillard's, Inc. has seen a price increase of 49.1% over the past year but has declined by 11.4% in the past week, holding a Momentum Score of B [10] - Sanmina Corporation's stock has jumped 82.4% in the past year but fell by 15.6% in the past week, also with a Momentum Score of B [12] - CommScope has surged 189.9% over the past year but lost 11.8% in the past week, maintaining a Momentum Score of B [14]

Group 1: Micron Technology, Inc. (MU) - Micron Technology has a Zacks Rank of 1 and a PEG ratio of 0.33, significantly lower than the industry average of 1.26 [1] - The Zacks Consensus Estimate for Micron's current year earnings has increased by 22.4% over the last 60 days [1] - The company possesses a Growth Score of A, indicating strong growth characteristics [1] Group 2: Sanmina Corporation (SANM) - Sanmina Corporation also holds a Zacks Rank of 1 and has a PEG ratio of 0.61, compared to the industry average of 1.75 [2] - The Zacks Consensus Estimate for Sanmina's current year earnings has risen by 38.9% over the last 60 days [2] - The company has a Growth Score of A, reflecting its strong growth potential [2] Group 3: Phibro Animal Health Corporation (PAHC) - Phibro Animal Health Corporation carries a Zacks Rank of 1 and has a PEG ratio of 1.14, which is lower than the industry average of 1.65 [3] - The Zacks Consensus Estimate for Phibro's current year earnings has increased by 9.1% over the last 60 days [3] - The company possesses a Growth Score of B, indicating solid growth characteristics [3]

Sanmina is growing, but that comes at a cost.Sanmina (SANM 7.42%) investors awoke to disappointment Tuesday, and the industrial stock is down 7.3% through noon ET despite what appears positive news.Deep in the heart of Texas, Sanmina Corporation plans "a major expansion of its Energy business with a new state-of-the-art factory in Houston." Opening in 2027, the new factory will target the U.S. energy market and be "capable of building a broad range of high-quality energy products, including: medium-voltage ...

Core Insights - Sanmina Corporation announced a significant expansion of its Energy business with a new factory in Houston, Texas, aimed at the US energy market, set to produce various high-quality energy products starting in 2027 [1][3] - The company has entered into a partnership with Konar - Electrical Industry Inc. to co-design a custom medium-voltage transformer and explore further collaboration opportunities [2][3] Company Overview - Sanmina is a Fortune 500 company recognized as a leading integrated manufacturing solutions provider in the Electronics Manufacturing Services (EMS) market, serving sectors such as industrial, medical, defense, aerospace, automotive, communications networks, and cloud and AI infrastructure [4] - The company has strategically located facilities worldwide to support its manufacturing solutions [4] Partner Company Overview - Konar is focused on energy transition and decarbonization in the power sector, developing advanced solutions and business models that benefit the community and environment [5] - With over a century of experience, Konar is a regional leader in power engineering and a top manufacturer of rail vehicles [5]