Company Overview - Sanmina (SANM) shares increased by 22.7% in the last trading session, closing at $140, with significantly higher trading volume compared to normal sessions. This follows a 5.7% decline over the past four weeks [1] - The company provides end-to-end solutions through a vertically integrated manufacturing process, managing all components in-house from initial phases to final products, which enhances operational flexibility and responsiveness [2] Growth Strategy - Sanmina focuses on expanding into high-growth industries, leveraging its strong global network and deep expertise in advanced electronics manufacturing. Building strong customer relationships through high-level service is a key strategy for commercial expansion [3] Financial Performance Expectations - The company is projected to report quarterly earnings of $1.57 per share, reflecting a year-over-year increase of 9.8%. Expected revenues are $2.05 billion, up 1.6% from the same quarter last year [4] - The consensus EPS estimate for Sanmina has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [5] Industry Context - Sanmina operates within the Zacks Electronics - Manufacturing Services industry, where Plexus (PLXS), another company in the same sector, closed 2.5% higher at $148.85, with a 4.5% return over the past month [5]

Core Insights - Sanmina's stock surged nearly 26% following a significant partnership announcement with AMD, which also experienced a notable increase in its stock price due to a multi-year deal with OpenAI [1][2]. Group 1: Partnership and Acquisitions - Sanmina is set to acquire AMD's data center infrastructure unit, ZT Systems, pending regulatory approval, which will allow AMD to retain ZT Systems' AI design services [3]. - AMD will collaborate with Sanmina as a preferred manufacturing partner for components essential for AI functionalities [4]. Group 2: Financial Impact - The AMD/Sanmina partnership is expected to positively impact Sanmina's non-GAAP (adjusted) earnings starting in the first year post-acquisition, with growth anticipated as synergies are fully realized over time [5].

Core Viewpoint - Shares of Sanmina Corporation surged over 22% intra-day following the announcement of a strategic partnership between AMD and OpenAI to deploy 6 gigawatts of AMD GPUs [1] Group 1: Strategic Partnership - The partnership between AMD and OpenAI involves OpenAI purchasing 6 gigawatts of AMD chips, starting with the MI450 model next year [3] - This deal is expected to benefit Sanmina's pending acquisition of ZT Systems' data center infrastructure manufacturing business from AMD, which was first disclosed in May [2] Group 2: Market Positioning - Sanmina is set to become AMD's U.S.-based new product introduction (NPI) manufacturing partner, positioning the company to leverage AMD's expanding artificial intelligence infrastructure partnerships [2] - Although the financial impact on Sanmina from the AMD-OpenAI agreement remains uncertain, analysts suggest potential gains if OpenAI or its affiliates choose Sanmina to assemble GPU racks for the project [3]

Core Insights - U.S. stocks exhibited mixed performance, with the Nasdaq Composite increasing by over 100 points on Monday [1] - Comerica Incorporated's shares surged 15.7% to $81.64 following the announcement of its acquisition by Fifth Third Bancorp for $10.9 billion [1] Company Performance - Critical Metals Corp. saw a significant increase in shares, jumping 78.8% to $14.27 after securing a $35 million securities purchase agreement [3] - Pioneer Ltd experienced a gain of 51.2%, reaching $7.18 [3] - Arteris, Inc. shares rose by 31.7% to $14.47 [3] - Advanced Micro Devices, Inc. surged 27.6% to $210.18 due to a multi-year partnership with OpenAI involving 6 Gigawatts of AMD GPUs and a warrant for up to 160 million shares [3] - Kopin Corporation's shares increased by 25.5% to $3.5391 following a $41 million PIPE financing announcement [3] - Sanmina Corporation rose 23.6% to $140.99 [3] - HIVE Digital Technologies Ltd. gained 23.2% to $5.48, with a 138% year-over-year increase in September Bitcoin output [3] - Eightco Holdings Inc. rose 21.1% to $9.98 [3] - Heidrick & Struggles International, Inc. jumped 19.8% to $58.31 after announcing a definitive agreement for acquisition valued at $1.3 billion [3] - Solid Power, Inc. increased by 19.4% to $5.16 [3] - UiPath Inc. rose 14.6% to $14.78 [3] - Diginex Limited gained 13.6% to $18.70 after completing the acquisition of Matter DK ApS [3] - Riot Platforms, Inc. rose 12.2% to $21.81, with an analyst maintaining an Overweight rating and raising the price target from $22 to $26 [3] - Eos Energy Enterprises, Inc. increased by 13.1% to $14.25 following a strategic partnership announcement with Unico [3] - IREN Limited jumped 10.6% to $55.84 [3] - Lumen Technologies, Inc. gained 10.3% to $7.24 [3] - Archer Aviation Inc. rose 9.9% to $12.72 [3]

Core Viewpoint - Premarket trading is showing notable activity with significant price movements indicating potential investment opportunities before the market opens [1] Premarket Gainers - Society Pass Incorporated (SOPA) has increased by 139% to $3.34 - Critical Metals Corp. (CRML) has risen by 79% to $14.30 - Sanmina Corporation (SANM) is up 26% at $144.61 - Palisade Bio, Inc. (PALI) has gained 25% to $2.00 - Advanced Micro Devices, Inc. (AMD) has increased by 24% to $205.07 - Odyssey Marine Exploration, Inc. (OMEX) is up 22% at $2.46 - Youxin Technology Ltd (YAAS) has risen by 21% to $3.14 - NioCorp Developments Ltd. (NB) is up 18% at $9.38 - Snow Lake Resources Ltd. (LITM) has increased by 14% to $5.66 - Plug Power Inc. (PLUG) is up 7% at $4.10 [3] Premarket Losers - Rich Sparkle Holdings Limited (ANPA) has decreased by 15% to $22.10 - CCH Holdings Ltd Ordinary Shares (CCHH) is down 15% at $3.73 - Xcel Brands, Inc. (XELB) has fallen by 14% to $2.04 - Quantum Computing Inc. (QUBT) is down 13% at $21.39 - Rent the Runway, Inc. (RENT) has decreased by 12% to $4.70 - MDJM Ltd (UOKA) is down 11% at $2.96 - CID HoldCo, Inc. (DAIC) has fallen by 9% to $2.72 - Algorhythm Holdings, Inc. (RIME) is down 9% at $2.47 - Corbus Pharmaceuticals Holdings, Inc. (CRBP) has decreased by 8% to $13.50 - Art's-Way Manufacturing Co., Inc. (ARTW) is down 7% at $2.58 [4]

Core Insights - Zacks Premium offers tools to enhance investor confidence and market engagement through daily updates, rankings, and research reports [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform in the next 30 days [2][3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [3] Growth Score - The Growth Score assesses a company's financial health and future outlook by analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score identifies optimal entry points for stocks based on price trends and earnings estimate changes [5] VGM Score - The VGM Score combines the three Style Scores to highlight stocks with attractive value, strong growth forecasts, and positive momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to aid in stock selection, with 1 (Strong Buy) stocks achieving an average annual return of +23.64% since 1988, significantly outperforming the S&P 500 [7][9] - There are over 800 stocks rated 1 or 2, making it essential to utilize Style Scores for effective selection [8] Company Spotlight: Sanmina Corporation - Sanmina Corporation, based in San Jose, CA, provides electronics contract manufacturing services across various sectors, including industrial, medical, and aerospace [11] - Currently rated 3 (Hold) with a VGM Score of A, Sanmina has a Momentum Style Score of B and has seen a 2% increase in shares over the past four weeks [12] - Recent upward revisions in earnings estimates for fiscal 2025 have increased the Zacks Consensus Estimate by $0.07 to $5.94 per share, with an average earnings surprise of +4.9% [12][13]

Capital Efficiency Analysis - ADC Therapeutics S.A. has a Return on Invested Capital (ROIC) of -54.62% and a Weighted Average Cost of Capital (WACC) of 20.44%, indicating significant challenges in capital efficiency [1][5] - Ciena Corporation shows a ROIC of 3.79% against a WACC of 8.87%, resulting in a ROIC to WACC ratio of 0.43, suggesting it is closer to covering its cost of capital [2][5] - COMSovereign Holding Corp. presents a ROIC of -694.61% and a WACC of 15.44%, leading to a ROIC to WACC ratio of -44.99, indicating severe inefficiencies [2][5] - Altair Engineering Inc. has a ROIC of 0.75% with a WACC of 10.57%, resulting in a ROIC to WACC ratio of 0.07, showing challenges similar to ADC Therapeutics [3][5] - ADTRAN Holdings, Inc. has a ROIC of -8.41% and a WACC of 9.27%, leading to a ROIC to WACC ratio of -0.91, indicating it is not generating sufficient returns [3][5] - Sanmina Corporation stands out with a ROIC of 9.69% and a WACC of 9.20%, resulting in a ROIC to WACC ratio of 1.05, making it the most efficient in capital utilization among the listed companies [4][5]

Company Overview - Sanmina Corporation is a global provider of electronics contract manufacturing services, focusing on engineering and fabricating complex components, as well as providing complete end-to-end supply chain solutions to Original Equipment Manufacturers across various end markets, including industrial, medical, defense and aerospace, automotive, communications, and cloud infrastructure [12]. Investment Ratings - Sanmina (SANM) currently holds a 3 (Hold) rating on the Zacks Rank, with a VGM Score of A, indicating a strong overall performance based on combined value, growth, and momentum metrics [13]. - The company has a Value Style Score of A, supported by attractive valuation metrics such as a forward P/E ratio of 20.64, which may appeal to value investors [13]. Earnings Estimates - For fiscal 2025, two analysts have revised their earnings estimates upwards in the last 60 days, with the Zacks Consensus Estimate increasing by $0.07 to $5.94 per share [13]. - Sanmina has demonstrated an average earnings surprise of +4.9%, indicating a positive trend in earnings performance [13]. Investment Considerations - With a solid Zacks Rank and top-tier Value and VGM Style Scores, Sanmina should be considered for investors' short lists as a potential investment opportunity [14].

Group 1 - Sanmina Inc. share price is currently at $119.35, reflecting a 0.36% increase, but has decreased by 4.78% over the past month while increasing by 80.33% over the past year [1] - The P/E ratio of Sanmina Inc. is 25.46, which is lower than the industry average P/E ratio of 120.3 in the Electronic Equipment, Instruments & Components sector [6] - A lower P/E ratio may suggest that the stock is undervalued or that shareholders do not expect future growth [8] Group 2 - The P/E ratio is a key metric for assessing a company's market performance, but it should not be used in isolation as other factors like industry trends and business cycles also influence stock prices [8] - Investors may remain optimistic about future performance if they are willing to pay a higher share price, which could indicate expectations of rising dividends [5]

Core Insights - Zacks Premium offers various tools to enhance investor confidence and market engagement, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum, serving as complementary indicators to the Zacks Rank, helping investors identify securities likely to outperform the market in the short term [2][3] Value Score - The Value Style Score focuses on identifying undervalued stocks by analyzing ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, appealing to value investors [3] Growth Score - The Growth Style Score assesses a company's financial health and future outlook by examining projected and historical earnings, sales, and cash flow, targeting growth investors [4] Momentum Score - The Momentum Style Score evaluates price trends and earnings outlook changes to assist momentum investors in identifying optimal buying opportunities [5] VGM Score - The VGM Score combines the three Style Scores, providing a comprehensive rating that highlights stocks with attractive value, strong growth potential, and promising momentum, making it a valuable tool alongside the Zacks Rank [6] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [7][8] Stock to Watch: Sanmina Corporation - Sanmina Corporation, based in San Jose, CA, specializes in electronics contract manufacturing services, offering engineering and supply chain solutions across various sectors, including industrial, medical, and automotive [12] - Sanmina holds a 3 (Hold) rating on the Zacks Rank, with a VGM Score of A and a Value Style Score of B, supported by a forward P/E ratio of 19.77, indicating potential interest for value investors [13] - Recent upward revisions in earnings estimates for fiscal 2025 have increased the Zacks Consensus Estimate by $0.07 to $5.94 per share, with an average earnings surprise of +4.9% [13][14]