Back to top

Image: Bigstock

TD SYNNEX (SNX) Rides on Rising IT Spending and New Deals

Read MoreHide Full Article

TD SYNNEX (SNX - Free Report) has been benefiting from the steady IT spending environment driven by the rapid digital transformation of late. Per Gartner, worldwide IT spending is anticipated to reach $4.2 trillion in 2021, suggesting an increase of 8.6% from 2020. The worldwide spending on enterprise software is expected to grow 13.2% year over year to approximately $599 billion this year.

TD SYNNEX has been gaining from consecutive deal wins within a month of its formation following the merger of SYNNEX and Tech Data Corporation in the first week of September. Besides, acquisitions and partnerships are boosting its product portfolio.

Most recently, it signed a strategic distribution agreement with the network security and automation solutions provider, EfficientIP. Per the agreement, TD SYNNEX will provide EfficientIP’s DDI and DNS Security solutions to its partner community of traditional value-added resellers, managed service providers, and system integrators. While this deal expands TD SYNNEX’s technology portfolio, it reinforces EfficientIP’s position in the DDI market.

In October, TD SYNNEX launched a virtual demo lab called World of Inspiration for visualizing and collaborating on multi-vendor solutions within authentic environments.

Earlier in the same month, the company signed a distribution agreement with the leading security compliance solution provider, Tugboat Logic, to leverage security compliance and assurance SaaS platform.

In September, it partnered with the global cloud security leader Zscaler (ZS - Free Report) to leverage security solutions from Zscaler’s leading Zero Trust Exchange platform.

Prior to that, the newly-formed entity signed an agreement with a leading Israeli software provider, Indeni, in a bid to utilize automated network security solutions. It has also signed a distribution contract with Palo Alto Networks (PANW - Free Report) to provide cybersecurity solutions to its India & SAARC (South Asian Association for Regional Cooperation)-based customers.

Zacks Rank & Another Key Pick

TD SYNNEX currently sports a Zacks Rank #1 (Strong Buy).

Another top-ranked stock in the broader technology sector is NVIDIA Corporation (NVDA - Free Report) , which flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term earnings growth rate of NVIDIA is pegged at 19.5%.

Published in