SYNNEX Corporation (SNX - Snapshot Report) recently raised fiscal second quarter guidance as business conditions improve across its segments. The company has attractive valuations, with a forward P/E of just 8.8.
Technology has been hot as its been one of the first industries to really see demand return since the start of the recession.
SYNNEX distributes IT systems, peripherals, system components, software and networking equipment to more than 15,000 resellers in several countries, including the United States, Canada, Mexico, China and Nicaragua.
Raised Second Quarter Guidance
On May 5, SYNNEX announced it was raising its second quarter guidance that it had previously issued on Mar 25 to the range of 67 to 70 cents from 62 to 65 cents.
The boost was based on a strengthening demand environment and an improving mix of business in key targeted segments.
Analysts raised estimates based on the new guidance. The fiscal second quarter Zacks Consensus Estimate jumped 4 cents to 68 cents per share.
The fiscal 2010 Zacks Consensus Estimate also climbed by 7 cents to $3.00 per share in the last month on the news.
Strong Earnings Surprise History
Even with the higher guidance, there is still a good chance that SYNNEX will surprise on estimates for the second quarter anyway.
The company has a strong track record of beating the estimate, having done so for the last 10 quarters. You can see the stellar earnings surprise track record below.
In addition to a low P/E ratio, the company also has a low price-to-book ratio of 1 which is well below the industry average of 1.9. It also has a PEG ratio of just 0.7, which indicates a value stock.
SYNNEX is now a Zacks #2 Rank (buy) stock.
Read the Oct 14, 2009 article.
Update to Previous Value Zacks Rank Buy Stocks
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