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Synchronoss (SNCR) Gains As Market Dips: What You Should Know

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Synchronoss (SNCR - Free Report) closed at $1.12 in the latest trading session, marking a +1.82% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.06%. Meanwhile, the Dow lost 0.46%, and the Nasdaq, a tech-heavy index, lost 0.08%.

Heading into today, shares of the mobile services company had lost 8.33% over the past month, lagging the Computer and Technology sector's loss of 1.1% and the S&P 500's gain of 4.94% in that time.

Synchronoss will be looking to display strength as it nears its next earnings release, which is expected to be November 8, 2022. The company is expected to report EPS of $0, down 100% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $62.4 million, down 10.54% from the year-ago period.

SNCR's full-year Zacks Consensus Estimates are calling for earnings of $0.16 per share and revenue of $261.72 million. These results would represent year-over-year changes of +180% and -6.73%, respectively.

Investors might also notice recent changes to analyst estimates for Synchronoss. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Synchronoss is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, Synchronoss is currently trading at a Forward P/E ratio of 6.88. Its industry sports an average Forward P/E of 42.59, so we one might conclude that Synchronoss is trading at a discount comparatively.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 76, putting it in the top 31% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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