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TD SYNNEX (SNX), MicroStrategy Tie Up In North America

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TD SYNNEX (SNX - Free Report) recently inked a partnership with the largest independent publicly-traded business intelligence company — MicroStrategy (MSTR - Free Report) — in the North American region.

MicroStrategy provides modern analytics on an open, comprehensive enterprise platform utilized by the world’s most admired brands in the Fortune Global 500. It offers flexible deployments, inclusive of on-premise and managed cloud-as-a-service, on leading cloud infrastructure options.

MicroStrategy’s breakthrough technology, HyperIntelligence, injects zero-click insights and actions directly into users’ existing workflows. Featured in the leading enterprise analytics platform, this solution overlays actionable enterprise data on popular business applications to help users make smarter and faster decisions.

Per the contract, MicroStrategy’s comprehensive software platform will include self-service data discovery, enterprise reporting, mobile applications, and embedded analytics. This, in turn, will expand TD SYNNEX’s internet of things (“IoT”), data, and analytics portfolio.

Through this, TD SYNNEX’s partners will be able to provide end-to-end enterprise analytics driving end-user adoption and meeting data-driven business culture demand.

Consecutive Distribution Deal Wins

It is remarkable that TD SYNNEX has been benefiting from consecutive deal wins since its formation, following the merger of SYNNEX and Tech Data Corporation in the first week of September 2021.

Recently, in December, TD SYNNEX’s wholly-owned subsidiary, Tech Data India, announced a partnership with Zscaler to enable its partners to purchase security solutions and services as part of the Zscaler Zero Trust Exchange platform directly from Tech Data India.

Prior to that, in October, TD SYNNEX’s legacy company, Tech Data, collaborated with Hewlett Packard Enterprise in the Asia Pacific to grow its distribution of HPE GreenLake cloud services in the region, enabling partners to access a robust set of cloud services that help customers tackle their most challenging business outcomes.

Earlier in October, TD SYNNEX’s legacy company, Tech Data, signed a distributor agreement with Freshworks Inc. to make Freshworks’ suite of products for business solutions available in the India region.

In September, TD SYNNEX partnered with Zscaler, which enabled its partners to purchase security solutions and services as part of the Zscaler Zero Trust Exchange platform directly from the company. In the same month, SNX signed an agreement with a leading Israeli software provider, Indeni, to leverage automated network security solutions.

Earlier in September, TD SYNNEX had won its first distribution contract from Palo Alto Networks to distribute the latter’s cybersecurity solutions to the India-& SAARC-based customers.

TD SYNNEX continues to look ahead to boost its organic growth with more strategic acquisitions and deal wins that complement and expand its existing capabilities. The merger of TD SYNNEX with Tech Data is expected to be significantly accretive to TD SYNNEX’s bottom line. The deal is anticipated to contribute solid synergy benefits to the company’s top line in the near term.

Zacks Rank & Stocks to Consider

TD SYNNEX currently carries a Zacks Rank #3 (Hold), while MicroStrategy carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks from the broader computer and technology sector include the largest global Customer Relationship Management vendor Salesforce (CRM - Free Report) and Hewlett Packard (HPE - Free Report) , each flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Salesforce’s fourth-quarter fiscal 2022 earnings has been revised downward by 7.6% to 73 cents per share over the past 60 days. For fiscal 2022, earnings estimates have moved upward by 0.43% to $4.68 per share in the last 60 days.

Salesforce’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 44.2%. CRM stock has appreciated 15.6% in the past year.

The Zacks Consensus Estimate for HPE’s first-quarter fiscal 2022 earnings has been revised downward by 6.1% to 46 cents per share over the past 60 days. For fiscal 2022, earnings estimates have moved north by 1.5% to $2.03 per share in the past 90 days.

HPE’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 14.4%. Shares of HPE have rallied 40.5% in the past year.

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