Discover Sanmina Corp (SANM), an undervalued stock with strong fundamentals, solid financial health, and promising growth prospects for value investors.
A number of stocks jumped in the afternoon session after the major indices rebounded, as Fed Chair Jerome Powell delivered dovish remarks at the much-awaited Jackson Hole symposium. Powell suggested that with inflation risks moderating and unemployment remaining low, the Federal Reserve might consider a shift in its monetary policy stance, including potential interest rate cuts. This outlook eased market concerns about prolonged high interest rates and their impact on economic growth. The prospect of lower borrowing costs bolstered investor confidence, particularly in sectors that have lagged, leading to a broad rally across the market.
A number of stocks fell in the afternoon session after investors took some profits off the table as markets awaited signals on future monetary policy from the Federal Reserve's Jackson Hole symposium later in the week.
Electronics manufacturing services company Sanmina (NASDAQ:SANM) reported Q2 CY2025 results beating Wall Street’s revenue expectations, with sales up 10.9% year on year to $2.04 billion. On the other hand, next quarter’s revenue guidance of $2.05 billion was less impressive, coming in 4% below analysts’ estimates. Its non-GAAP profit of $1.53 per share was 8.1% above analysts’ consensus estimates.
Even if a company is profitable, it doesn’t always mean it’s a great investment.
Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential.
The Russell 2000 (^RUT) is packed with potential breakout stocks, thanks to its focus on smaller companies with high growth potential.
However, smaller size also means these businesses often lack the resilience and financial flexibility of large-cap firms, making careful selection crucial.
A company that generates cash isn’t automatically a winner.
Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand.
Electronics manufacturing services company Sanmina (NASDAQ:SANM) beat Wall Street’s revenue expectations in Q2 CY2025, with sales up 10.9% year on year to $2.04 billion. On the other hand, next quarter’s revenue guidance of $2.05 billion was less impressive, coming in 3.8% below analysts’ estimates. Its non-GAAP profit of $1.53 per share was 8.1% above analysts’ consensus estimates.
Even if they go mostly unnoticed, industrial businesses are the backbone of our country. Unfortunately, this role also comes with a demand profile tethered to the ebbs and flows of the broader economy.
The market seems to be debating where we are in the cycle as the industrials stocks were flat over the past six months.
At the same time, the S&P 500 rose by 3.7%.
Shares of electronics manufacturing services company Sanmina (NASDAQ:SANM) jumped 3.4% in the afternoon session as the stock gained ground amid broader positive market sentiment, with no major company-specific news released.
A highly volatile stock can deliver big gains - or just as easily wipe out a portfolio if things go south.
While some investors embrace risk, mistakes can be costly for those who aren’t prepared.
The low valuation multiples for value stocks provide a margin of safety that growth stocks rarely offer.
However, the challenge lies in determining whether these cheap assets are genuinely undervalued or simply on sale due to their potentially deteriorating business models.
A surplus of cash can mean financial stability, but it can also indicate a reluctance (or inability) to invest in growth.
Some of these companies also face challenges like stagnating revenue, declining market share, or limited scalability.
