In the latest trading session, Synnex (SNX) closed at $143.99, marking a -0.12% move from the previous day. This change was narrower than the S&P 500's 0.16% loss on the day. Elsewhere, the Dow lost 0.43%, while the tech-heavy Nasdaq lost 0.14%.
Coming into today, shares of the high-tech contractor had lost 3.98% in the past month. In that same time, the Computer and Technology sector gained 5.86%, while the S&P 500 gained 3.63%.
Investors will be hoping for strength from SNX as it approaches its next earnings release. On that day, SNX is projected to report earnings of $3.14 per share, which would represent 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.
Any recent changes to analyst estimates for SNX should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. SNX is currently a Zacks Rank #1 (Strong Buy).
Looking at its valuation, SNX is holding a Forward P/E ratio of 10.32. Its industry sports an average Forward P/E of 31.59, so we one might conclude that SNX is trading at a discount comparatively.
Investors should also note that SNX has a PEG ratio of 0.99 right now. 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 was holding an average PEG ratio of 2.97 at yesterday's closing price.
The Business - Software Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 13, putting it in the top 6% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.