Would You Still Hold Sanmina Stock If It Fell Another 30%?
Sanmina (SANM) stock is down 21.6% in a day. The recent slide reflects renewed concerns around Sanmina’s weak Q2 sales forecast and slower AI infrastructure ramp-up, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Sanmina stands today.
- Size: Sanmina is a $7.8 Bil company with $9.3 Bil in revenue currently trading at $143.19.
- Fundamentals: Last 12 month revenue growth of 20.9% and operating margin of 4.5%.
- Liquidity: Has Debt to Equity ratio of 0.28 and Cash to Assets ratio of 0.14
- Valuation: Sanmina stock is currently trading at P/E multiple of 33.7 and P/EBIT multiple of 21.9
- Has returned (median) 13.3% within a year following sharp dips since 2010. See SANM Dip Buy Analysis.
These metrics point to a Moderate operational performance, alongside Moderate valuation – making the stock Fairly Priced. For details, see Buy or Sell SANM Stock
That brings us to the key consideration for investors worried about this fall: how resilient is SANM stock if markets turn south? This is where our downturn resilience framework comes in. Suppose SANM stock falls another 20-30% to $100 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- SANM stock fell 33.9% from a high of $68.46 on 10 November 2022 to $45.24 on 7 November 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 30 May 2024
- Since then, the stock increased to a high of $182.54 on 26 January 2026 , and currently trades at $143.19
| SANM | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -33.9% | -25.4% |
| Time to Full Recovery | 205 days | 464 days |
2020 Covid Pandemic
- SANM stock fell 45.9% from a high of $34.65 on 2 January 2020 to $18.74 on 16 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 7 January 2021
| SANM | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -45.9% | -33.9% |
| Time to Full Recovery | 297 days | 148 days |
2018 Correction
- SANM stock fell 46.8% from a high of $42.45 on 24 July 2017 to $22.60 on 24 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 17 March 2021
| SANM | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -46.8% | -19.8% |
| Time to Full Recovery | 814 days | 120 days |
2008 Global Financial Crisis
- SANM stock fell 94.9% from a high of $23.46 on 26 February 2007 to $1.20 on 5 March 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 22 July 2014
| SANM | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -94.9% | -56.8% |
| Time to Full Recovery | 1,965 days | 1,480 days |
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