SANM Should I Buy
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Sanmina Corp (SANM) is not a strong buy for a beginner investor with a long-term focus at this moment. While the company has shown significant revenue growth, its declining net income, EPS, and gross margin, combined with neutral trading sentiment and lack of recent positive catalysts, suggest a wait-and-see approach. The technical indicators and options data do not point to a compelling entry point currently.
The MACD histogram is negative and expanding (-1.551), indicating bearish momentum. RSI is neutral at 33.521, and moving averages are converging, showing no clear trend. The stock is trading near its S1 support level (139.608), with resistance at 146.862. Short-term stock trend analysis suggests a 60% chance of minor declines in the next day (-0.4%) and week (-1.37%).
Analyst upgrades from Argus and BofA with increased price targets ($200 and $190, respectively) suggest confidence in the company's long-term potential. The company's extensive manufacturing presence and agile infrastructure are noted as strengths.
Declining net income (-24.18% YoY), EPS (-23.28% YoY), and gross margin (-9.68% YoY) in Q1 2026 indicate profitability challenges. There is uncertainty around the integration of ZT Systems and its revenue ramp-up with AMD. No recent news or congress trading data to act as a catalyst.
In Q1 2026, revenue increased significantly by 58.98% YoY to $3.19 billion, but net income dropped by 24.18% YoY to $49.29 million. EPS fell by 23.28% YoY to 0.89, and gross margin declined to 7.56% (-9.68% YoY), reflecting profitability challenges.
Argus raised the price target to $200 from $170 with a Buy rating, citing strong earnings and manufacturing capabilities. BofA raised the price target to $190 from $180 but maintained a Neutral rating, highlighting both opportunities and challenges in the company's revenue streams.
