We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Synaptics (SYNA - Free Report) is a Zacks Rank #1 (Strong Buy) and following a very big beat, it is a safe bet that the stock will remain a Zacks Rank #1 (Strong Buy). Earnings beats play a role in the rank, but the movement in earnings estimates is a much more important factor to the Rank. Let's take a look at why I believe this stock will remain at the strongest Rank for at least the next few weeks.
Description
Synaptics Incorporated develops, markets, and sells intuitive human interface solutions for electronic devices and products worldwide. The company sells its products through direct sales, outside sales representatives, distributors, and resellers. It serves mobile and PC original equipment manufacturers; Internet of Things manufacturers; and consumer electronics manufacturers. The company was founded in 1986 and is headquartered in San Jose, California.
Recent Report
On February 6, the company reported EPS of $2.04 when the Zacks Consensus Estimate was calling for $1.44. That 60 cent beat translates into a positive earnings surprise of 41%
Revenues came in at $388M, almost 10% ahead of the Wall Street consensus for revenue.
The company also guided sales for next quarter to $330M - $350M as compared to the Wall Street consensus of $300M at the time of the report.
Earnings History
SYNA has a good history of beathing the number. I see each of the last four reports have come in ahead of the Zacks Consensus Estimate. For the most part, the beats are big, as the average positive earnings surprise over the last year is 36%.
Estimate Movement
Wow. That is all I could say as I look at the estimate moves for SYNA. The current quarter jumped to $1.47 from $0.69. That is a huge move for one quarter, but wait, there is more!
Next quarter lifted to $1.06 from $0.66.
The fiscal year moved from $4.00 to $5.78.
Next fiscal year jumped to $5.22 from $4.42.
Those are some huge moves!
Valuation
Those huges moves in estimated EPS have brought the valuation down to great levels. I see 14x forward earnings and a price to book of just about 4x. Price to sales at only 2x is also a great level.
Margins have moved from 6% to 6.6% and are now at 8% --- and you have to love that as more sales turn into even more EPS.
Chart
Synaptics Incorporated Price, Consensus and EPS Surprise
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
Bull Of The Day: Synaptics (SYNA)
Synaptics (SYNA - Free Report) is a Zacks Rank #1 (Strong Buy) and following a very big beat, it is a safe bet that the stock will remain a Zacks Rank #1 (Strong Buy). Earnings beats play a role in the rank, but the movement in earnings estimates is a much more important factor to the Rank. Let's take a look at why I believe this stock will remain at the strongest Rank for at least the next few weeks.
Description
Synaptics Incorporated develops, markets, and sells intuitive human interface solutions for electronic devices and products worldwide. The company sells its products through direct sales, outside sales representatives, distributors, and resellers. It serves mobile and PC original equipment manufacturers; Internet of Things manufacturers; and consumer electronics manufacturers. The company was founded in 1986 and is headquartered in San Jose, California.
Recent Report
On February 6, the company reported EPS of $2.04 when the Zacks Consensus Estimate was calling for $1.44. That 60 cent beat translates into a positive earnings surprise of 41%
Revenues came in at $388M, almost 10% ahead of the Wall Street consensus for revenue.
The company also guided sales for next quarter to $330M - $350M as compared to the Wall Street consensus of $300M at the time of the report.
Earnings History
SYNA has a good history of beathing the number. I see each of the last four reports have come in ahead of the Zacks Consensus Estimate. For the most part, the beats are big, as the average positive earnings surprise over the last year is 36%.
Estimate Movement
Wow. That is all I could say as I look at the estimate moves for SYNA. The current quarter jumped to $1.47 from $0.69. That is a huge move for one quarter, but wait, there is more!
Next quarter lifted to $1.06 from $0.66.
The fiscal year moved from $4.00 to $5.78.
Next fiscal year jumped to $5.22 from $4.42.
Those are some huge moves!
Valuation
Those huges moves in estimated EPS have brought the valuation down to great levels. I see 14x forward earnings and a price to book of just about 4x. Price to sales at only 2x is also a great level.
Margins have moved from 6% to 6.6% and are now at 8% --- and you have to love that as more sales turn into even more EPS.
Chart
Synaptics Incorporated Price, Consensus and EPS Surprise
Synaptics Incorporated price-consensus-eps-surprise-chart | Synaptics Incorporated Quote
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>