Is Synnex (SNX) a Great Value Stock Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Synnex (SNX). SNX is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.43, which compares to its industry's average of 23.33. Over the last 12 months, SNX's Forward P/E has been as high as 10.89 and as low as 6.31, with a median of 8.22.
Investors should also note that SNX holds a PEG ratio of 1.01. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SNX's PEG compares to its industry's average PEG of 2.15. SNX's PEG has been as high as 1.01 and as low as 0.53, with a median of 0.73, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Synnex is likely undervalued currently. And when considering the strength of its earnings outlook, SNX sticks out at as one of the market's strongest value stocks.
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