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Synchronoss (SNCR) Stock Sinks As Market Gains: What You Should Know

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Synchronoss (SNCR - Free Report) ended the recent trading session at $7.36, demonstrating a -3.29% change from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.83%. At the same time, the Dow added 0.77%, and the tech-heavy Nasdaq gained 1.02%.

Shares of the mobile services company have appreciated by 9.97% over the course of the past month, outperforming the Computer and Technology sector's gain of 8.25%, and the S&P 500's gain of 4.99%.

The investment community will be paying close attention to the earnings performance of Synchronoss in its upcoming release. The company is forecasted to report an EPS of $0.25, showcasing a 47.92% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $42.59 million, down 2% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.17 per share and revenue of $172.42 million. These totals would mark changes of -28.22% and -0.68%, respectively, from last year.

Any recent changes to analyst estimates for Synchronoss should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 remained stagnant. At present, Synchronoss boasts a Zacks Rank of #5 (Strong Sell).

Investors should also note Synchronoss's current valuation metrics, including its Forward P/E ratio of 6.5. This expresses a discount compared to the average Forward P/E of 28.74 of its industry.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 46, which puts it in the top 19% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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