Advertisement
Canada markets open in 1 hour 21 minutes

  • S&P/TSX

    22,290.62
    +31.15 (+0.14%)
     

  • S&P 500

    5,187.70
    +6.96 (+0.13%)
     

  • DOW

    38,884.26
    +31.99 (+0.08%)
     

  • CAD/USD

    0.7267
    -0.0019 (-0.27%)
     

  • CRUDE OIL

    77.46
    -0.92 (-1.17%)
     

  • Bitcoin CAD

    85,897.51
    -1,653.63 (-1.89%)
     

  • CMC Crypto 200

    1,322.70
    +28.03 (+2.16%)
     

  • GOLD FUTURES

    2,322.20
    -2.00 (-0.09%)
     

  • RUSSELL 2000

    2,064.65
    +3.97 (+0.19%)
     

  • 10-Yr Bond

    4.4630
    -0.0260 (-0.58%)
     

  • NASDAQ futures

    18,152.75
    -46.75 (-0.26%)
     

  • VOLATILITY

    13.31
    +0.08 (+0.60%)
     

  • FTSE

    8,336.30
    +22.63 (+0.27%)
     

  • NIKKEI 225

    38,202.37
    -632.73 (-1.63%)
     

  • CAD/EUR

    0.6760
    -0.0011 (-0.16%)
     

Are Investors Undervaluing Synnex (SNX) Right Now?

Zacks Equity Research

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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 8.59, which compares to its industry's average of 20.43. SNX's Forward P/E has been as high as 9.06 and as low as 6.31, with a median of 7.67, all within the past year.

ADVERTISEMENT

SNX is also sporting a PEG ratio of 0.83. 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 industry currently sports an average PEG of 1.88. SNX's PEG has been as high as 0.87 and as low as 0.53, with a median of 0.66, all within the past year.

These are only a few of the key metrics included in Synnex's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, SNX looks like an impressive value stock at the moment.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
SYNNEX Corporation (SNX) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research