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Synchronoss (SNCR) Falls More Steeply Than Broader Market: What Investors Need to Know

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Synchronoss (SNCR - Free Report) ended the recent trading session at $7.25, demonstrating a -2.29% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.01%. At the same time, the Dow lost 0.32%, and the tech-heavy Nasdaq gained 0.05%.

The mobile services company's stock has climbed by 15.58% in the past month, exceeding the Computer and Technology sector's gain of 7.44% and the S&P 500's gain of 5.37%.

The investment community will be closely monitoring the performance of Synchronoss in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.25, reflecting a 47.92% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $42.59 million, indicating a 2% downward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $1.17 per share and a revenue of $172.42 million, demonstrating changes of -28.22% and -0.68%, respectively, from the preceding year.

Any recent changes to analyst estimates for Synchronoss should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Synchronoss is currently sporting a Zacks Rank of #4 (Sell).

In terms of valuation, Synchronoss is currently trading at a Forward P/E ratio of 6.34. This denotes a discount relative to the industry average Forward P/E of 28.43.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 77, putting it in the top 32% 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.


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