Copy Section

{{articledata.title}}

{{moment(articledata.cdate)}} @{{articledata.company.replace(" ","")}} comment

Among technology companies, small-cap stock %Sanmina Corp. (NASDAQ: $SANM ) gets little attention.

The company, based in the heart of Silicon Valley, manufacturers the electronic components and hardware that power today's computers and communications systems.

Because the company doesn't sell to the public – its customers are tech companies such as %Cisco Systems (NASDAQ: $CSCO ), %Dell Technologies (NYSE: $DELL ), and IBM (NYSE: $IBM ) – it is not well-known among investors.

However, Sanmina manufactures products that are essential within the technology sector, both in the U.S. and globally.

Today, Sanmina has 80 manufacturing sites worldwide and is the world's largest manufacturer of %CircuitBoards. Not sexy, but indispensable to its customers.

Owing to the essential nature of its products, Sanmina consistently produces strong financial results, and this has powered the company's stock.

This year, SANM stock is up 12%. Over the past five years, the company's share price has rocketed nearly 240% higher.

Yet for all its success, and the fact that Sanmina has 32,000 employees and annual revenues of more than $8 billion U.S., it remains a small-cap stock with a market capitalization of $4.51 billion U.S.

Unlike many other technology companies, Sanmina also has an attractive valuation. Its shares currently trade at 19 times this year's earnings estimates, which is rock bottom in Silicon Valley.

There's no dividend on offer, but the share price appreciation should make Sanmina attractive to investors on the hunt for under-the-radar tech stocks that aren't expensive but deliver growth to shareholders.

SANM stock is currently trading at $84.44 U.S. per share.


More from @{{articledata.company.replace(" ", "") }}

Menu