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Is Synnex (SNX) Stock Undervalued Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is Synnex (SNX - Free Report) . SNX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 10.73 right now. For comparison, its industry sports an average P/E of 23.95. Over the last 12 months, SNX's Forward P/E has been as high as 12.75 and as low as 4.67, with a median of 10.05.

Investors should also note that SNX holds a PEG ratio of 1.15. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SNX's industry currently sports an average PEG of 2.55. Over the last 12 months, SNX's PEG has been as high as 1.36 and as low as 0.45, with a median of 1.05.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Synnex is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SNX feels like a great value stock at the moment.


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