Synnex (SNX) Gains As Market Dips: What You Should Know
Synnex (SNX) closed at $145.22 in the latest trading session, marking a +1.12% move from the prior day. This change outpaced the S&P 500's 0.38% loss on the day. Meanwhile, the Dow lost 0.44%, and the Nasdaq, a tech-heavy index, lost 0.67%.
Prior to today's trading, shares of the high-tech contractor had lost 1.99% over the past month. This has lagged the Computer and Technology sector's gain of 3.8% and the S&P 500's gain of 1.91% in that time.
SNX will be looking to display strength as it nears its next earnings release. 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.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.97 per share and revenue of $23.01 billion, which would represent changes of +5.35% and -3.14%, respectively, from the prior year.
Any recent changes to analyst estimates for SNX should also be noted by investors. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 currently has a Zacks Rank of #1 (Strong Buy).
Investors should also note SNX's current valuation metrics, including its Forward P/E ratio of 10.28. This valuation marks a discount compared to its industry's average Forward P/E of 32.32.
Also, we should mention that SNX has a PEG ratio of 0.99. 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. The Business - Software Services industry currently had an average PEG ratio of 3.9 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 20, which puts it in the top 8% 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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