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

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In the latest trading session, Synnex (SNX - Free Report) closed at $119.12, marking a -1.76% move from the previous day. This move lagged the S&P 500's daily gain of 0.05%. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, added 0.11%.

Coming into today, shares of the high-tech contractor had gained 3.23% in the past month. In that same time, the Computer and Technology sector gained 4.89%, while the S&P 500 gained 4.32%.

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 $3.61 per share. This would mark a year-over-year decline of 1.1%. Meanwhile, our latest consensus estimate is calling for revenue of $6 billion, up 6.71% from the prior-year quarter.

SNX's full-year Zacks Consensus Estimates are calling for earnings of $12.61 per share and revenue of $23.18 billion. These results would represent year-over-year changes of +15.79% and +15.57%, respectively.

Investors should also note any recent changes to analyst estimates for SNX. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. SNX is currently a Zacks Rank #2 (Buy).

Looking at its valuation, SNX is holding a Forward P/E ratio of 9.62. This valuation marks a discount compared to its industry's average Forward P/E of 30.51.

It is also worth noting that SNX currently has a PEG ratio of 0.93. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Business - Software Services stocks are, on average, holding a PEG ratio of 2.7 based on yesterday's closing prices.

The Business - Software Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 68, putting it in the top 27% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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