Sanmina Corporation SANM is a globally recognized provider of integrated manufacturing solutions with a strong presence in the defense and aerospace sector. Its engineering capabilities ensure highly reliable electronic systems and components for radar, communication, satellite systems and avionics used in mission-critical military applications.
In the defense domain, Sanmina produces key electronic components, including high-density printed circuit boards (PCBs), backplanes, microwave modules, optical assemblies, rugged enclosures and radio frequency (RF) components for military use. Its systems provide the strong signal performance needed for radar, surveillance and targeting, while its optical and photonics technologies enable fast data transmission and sensing in aerospace and space applications.
Sanmina maintains strict quality standards, such as AS9100 certification, to ensure its products are reliable and meet defense requirements. The company’s end-to-end supply chain solutions help defense original equipment manufacturers (OEMs) reduce complexity and accelerate product launch. Its global footprint supports defense programs across multiple regions while maintaining secure and controlled operations.
Rising geopolitical tensions are driving higher global defense spending, leading to increased demand for advanced and reliable defense electronics. Sanmina, with its strong defense portfolio, is well-positioned to benefit from this growth.
How Are Competitors Advancing in the Defense Sector?
The company faces stiff competition from Jabil, Inc. JBL and Celestica Inc. CLS. Jabil is expanding its presence in the defense sector by providing manufacturing, engineering and supply chain services for aerospace and military needs. It focuses on areas like satellites, secure communications and reliable defense electronics while working with major defense companies. The company is improving its supply chain and market intelligence to help defense customers manage risks and respond to global changes.
Celestica is strengthening its role in the defense sector by providing advanced electronics manufacturing and system integration services. It supports defense programs like secure communications, radar systems, UAVs and shipboard electronics used across air, land and sea platforms. The company also focuses on building rugged and high-reliability systems while helping defense customers improve production speed and supply chain efficiency.
SANM's Price Performance, Valuation & Estimates
Sanmina shares have surged 94.9% compared with the industry’s growth of 174.3%.
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From a valuation standpoint, the company’s shares currently trade at 13.03x forward 12-month earnings, lower than the industry tally of 25.47x.
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Earnings estimates for 2026 have moved up 1.3% to $10.19 per share over the past 60 days, while the same for 2027 has increased 2% to $12.35.
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Sanmina currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).