Sanmina Corporation-(SANM)
Sanmina provides electronics contract manufacturing services. It focuses on engineering and fabricating complex components. SANM also provides end-to-end supply chain solutions to OEMs (original equipment manufacturers). Sanmina’s stock is a Zacks Rank #3 (Hold) and it gets an “A” for Growth and Value in our Style Scores.
Sanmina looks like a viable investment choice because of its well-roundedness across fundamental financial metrics. The company’s current ratio of 1.64 shows that SANM is relatively liquid, and its debt-to-equity of 0.28 shows that it is not very leveraged either. One especially promising trait of Sanmina’s is its exceptional profit margins compared to the industry. SANM has a trailing twelve month net margin of 6.24%, and this far surpasses the industry’s average net margin of 2.47%.
In spite of looking like a strong company within its industry, SANM looks quite cheap across a range of valuation metrics. Sanmina has a forward PE of 12.48, and its PEG stands at just 0.71. A PEG under one could suggest that there is value present. SANM also has a price-to-sales of 0.32, and this further supports the notion that this stock may be undervalued. Sanmina has surpassed our EPS consensus estimate in two of the last three quarters, and t is slated to release its next quarterly earnings report in the beginning of November.
Vishay Intertechnology Inc-(VSH)
Vishay Intertechnology is a manufacturer and supplier of discrete passive and discrete active electronic components such as resistors, capacitors, inductors, diodes, and transistors. Vishay Intertechnology is a Zacks Rank #1 (Strong Buy) and it has a market cap of $2 billion.
Like Sanmina, VSH is solid across important valuation metrics. It has a current ratio and debt-to-equity of 4.18 and 0.2 respectively. The corporation’s EPS is projected to grow by 23.61% this year, and over the last 3 months our current year EPS consensus has grown by 4.7% to $0.89. The company has topped our EPS estimate in each of the last four quarters, and in that span of time it has beaten our consensus by an average of 19% per quarter.
Vishay Intertechnology’s stock seems to be pretty cheap right now. The firm’s price-to-sales and PEG come out to just 0.9 and 0.89 respectively. Both of these metrics are under one, and this helps in supporting an argument for why VSH is a bargain opportunity. VSH also has a price-to-book of 1.25 and a forward PE of 15.71. The corporation is expected to release its next quarterly earnings report in early November.
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