Can Sanmina's Extended Manufacturing Footprint Aid Growth Prospects?

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]