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

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In the latest trading session, Synnex (SNX - Free Report) closed at $133.82, marking a +0.5% move from the previous day. This move outpaced the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.46%, and the tech-heavy Nasdaq gained 0.17%.

Heading into today, shares of the high-tech contractor had lost 4.87% over the past month, outpacing the Computer and Technology sector's loss of 5.23% and the S&P 500's loss of 4.88% in that time.

Wall Street will be looking for positivity from SNX as it approaches its next earnings report date. In that report, analysts expect SNX to post earnings of $3.14 per share. This would mark year-over-year growth of 10.56%. Our most recent consensus estimate is calling for quarterly revenue of $5.39 billion, up 2.71% from the year-ago period.

SNX's full-year Zacks Consensus Estimates are calling for earnings of $13.97 per share and revenue of $23.01 billion. These results would represent year-over-year changes of +5.35% and -3.14%, respectively.

Investors might also notice recent changes to analyst estimates for SNX. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. SNX currently has a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that SNX has a Forward P/E ratio of 9.53 right now. For comparison, its industry has an average Forward P/E of 30.98, which means SNX is trading at a discount to the group.

We can also see that SNX currently has a PEG ratio of 0.92. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SNX's industry had an average PEG ratio of 3.78 as of yesterday's close.

The Business - Software Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 32, which puts it in the top 13% 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.

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


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