Top tech stock Sanmina has formed a three-weeks-tight pattern since mid-November, with a possible entry at 69.38.
The stock broke out of a cup base with a 52.24 buy point back in October. It surged into the 60s after an early November breakaway gap and eased into a flat base. This action could soon offer a secondary entry as Sanmina continues to hold near the rally high.
Top-notch technical ratings have landed Sanmina a spot in the IBD Breakout Opportunities index.
Volume surged in recent sessions, supporting the bullish action, which has held support along the 10-day line since mid-November.
SANM stock's Electronic-Contract Manufacturing industry group holds a lofty No. 2 spot on IBD's list of 197 industry sectors. It ranks first among its peers, with stellar ratings, including a perfect 99 Composite Rating and 98 Relative Strength Rating.
Mutual funds have been scooping up shares of the top-rated manufacturer over the past three quarters. Over 65% of its stock is owned by funds. That makes sense, given its top-notch "A-" Accumulation/Distribution Rating, which indicates strong institutional interest.
Third quarter sales grew 34% to $2.2 billion while earnings of $1.50 per share marked a 58% surge from the previous year.
Top Tech Stock Leads Electronics Market
Sanmina has a long industrial history, founded back in 1980.
This top tech stock makes printed circuit boards, welded frames, backplanes, cables, optical and RF microelectronics for original equipment manufacturers.
The San Jose, Calif. based company also provides testing and supply chain management. It sells products and services for industrial, aviation, medical, defense, automation and other applications.
Sanmina operates in 20 countries outside the U.S., including Japan, Canada, Mexico, India, Singapore, Thailand and China. It acquired SCI Systems in 2001, catapulting the company from a niche play in electronic contract manufacturing to diverse industrial provider with a wide range of capabilities.
It entered into a joint venture with Reliance Industries in March 2022, hooking up with the largest private sector company in India. Sanmina holds a 49.9% stake in the venture which was completed in October.
IBD Breakout Opportunities ETF
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