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Synnex (SNX) Dips More Than Broader Markets: What You Should Know

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Synnex (SNX - Free Report) closed at $96.27 in the latest trading session, marking a -0.45% move from the prior day. This change lagged the S&P 500's daily loss of 0.15%. Meanwhile, the Dow gained 0.21%, and the Nasdaq, a tech-heavy index, lost 0.81%.

Prior to today's trading, shares of the high-tech contractor had gained 19.63% over the past month. This has outpaced the Computer and Technology sector's gain of 5.57% and the S&P 500's gain of 6.55% in that time.

Wall Street will be looking for positivity from SNX as it approaches its next earnings report date. This is expected to be April 4, 2019. The company is expected to report EPS of $2.73, up 27.57% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.29 billion, up 16.12% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $11.81 per share and revenue of $21.86 billion, which would represent changes of +8.45% and +9%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for SNX. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.17% higher. SNX is holding a Zacks Rank of #1 (Strong Buy) right now.

Looking at its valuation, SNX is holding a Forward P/E ratio of 8.19. This valuation marks a discount compared to its industry's average Forward P/E of 27.4.

The Business - Software Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 21, which puts it in the top 9% 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.

To follow SNX in the coming trading sessions, be sure to utilize Zacks.com.


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