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 - 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 - 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]

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].

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]

Investment Rating - The report assigns a Neutral rating to Inventec with a 12-month price target of NT$45, down from a previous target of NT$50 [7]. Core Insights - Inventec reported Q125 earnings with sales of NT$157.0 billion, reflecting a 21% decrease QoQ but a 20% increase YoY. The sales mix shifted to 49% notebooks and 48% servers, with AI servers constituting 50% of server sales [2][12]. - The company anticipates a 10% QoQ increase in Q225 sales to NT$173.0 billion, driven by strong demand for Blackwell HGX servers, although a stronger NT$ may dampen growth [3]. - Growth expectations for 2025 have been trimmed from 4% YoY to 2% YoY, influenced by flat demand in the second half and tariff impacts [4][19]. Financial Performance - For 2025, the expected EPS is NT$2.57, below the street estimate of NT$2.63, with a price target reduction reflecting a valuation of 16x 2026 EPS [5][27]. - The company's revenue projections show a gradual increase, with expected revenues of NT$663.8 billion in 2025 and NT$726.0 billion in 2026 [6][20]. Market Position and Valuation - Inventec is trading at a premium valuation of 17x/15x 2025-26 P/E, higher than its peers, indicating that the market has largely priced in growth expectations [10][27]. - The company has a solid market share in general servers and AI server motherboards, but may lag behind competitors like HonHai and Quanta in ramping up production [5][10]. Cash Flow and Dividends - The report indicates that Inventec's cash flows have been affected by cyclical earnings in PCs, but a return to positive free cash flow is projected in the coming years [21]. - A cash dividend of NT$1.70 has been declared, yielding approximately 4% at current levels, reflecting a high payout rate [21].