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Synnex (SNX) Stock Sinks As Market Gains: What You Should Know

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Synnex (SNX - Free Report) closed the most recent trading day at $79.30, moving -1.72% from the previous trading session. This change lagged the S&P 500's daily gain of 0.25%. Meanwhile, the Dow gained 0.39%, and the Nasdaq, a tech-heavy index, lost 0.09%.

Heading into today, shares of the high-tech contractor had lost 15.3% over the past month, lagging the Computer and Technology sector's loss of 5.18% and the S&P 500's loss of 5.58% in that time.

Investors will be hoping for strength from SNX as it approaches its next earnings release. In that report, analysts expect SNX to post earnings of $2.86 per share. This would mark year-over-year growth of 11.28%. Meanwhile, our latest consensus estimate is calling for revenue of $5.68 billion, up 15.72% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.10 per share and revenue of $22.57 billion. These totals would mark changes of +11.11% and +12.56%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for SNX. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 remained stagnant. SNX currently has a Zacks Rank of #2 (Buy).

Digging into valuation, SNX currently has a Forward P/E ratio of 6.67. Its industry sports an average Forward P/E of 33.91, so we one might conclude that SNX is trading at a discount comparatively.

It is also worth noting that SNX currently has a PEG ratio of 0.56. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Business - Software Services stocks are, on average, holding a PEG ratio of 2.5 based on yesterday's closing prices.

The Business - Software Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 41% of all 250+ industries.

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

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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