Back to top

Image: Bigstock

Here's Why Synchronoss (SNCR) Fell More Than Broader Market

Read MoreHide Full Article

Synchronoss (SNCR - Free Report) closed the most recent trading day at $6.42, moving -1.68% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.03%. On the other hand, the Dow registered a loss of 0.11%, and the technology-centric Nasdaq increased by 0.13%.

The mobile services company's stock has dropped by 5.77% in the past month, falling short of the Computer and Technology sector's gain of 3.02% and the S&P 500's gain of 0.6%.

Analysts and investors alike will be keeping a close eye on the performance of Synchronoss in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.25, reflecting a 47.92% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $42.59 million, down 2% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.17 per share and revenue of $172.42 million, indicating changes of -28.22% and -0.68%, respectively, compared to the previous year.

It is also important to note the recent changes to analyst estimates for Synchronoss. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 23.91% lower. Synchronoss is currently sporting a Zacks Rank of #5 (Strong Sell).

In terms of valuation, Synchronoss is presently being traded at a Forward P/E ratio of 5.58. This denotes a discount relative to the industry average Forward P/E of 28.07.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 53, positioning it in the top 22% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Synchronoss Technologies, Inc. (SNCR) - free report >>

Published in