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Is Synnex (SNX) Stock Undervalued Right Now?

Zacks Equity Research

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Synnex (SNX). SNX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 9.06, which compares to its industry's average of 19.84. Over the past year, SNX's Forward P/E has been as high as 9.06 and as low as 6.31, with a median of 7.65.

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Investors will also notice that SNX has a PEG ratio of 0.87. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SNX's PEG compares to its industry's average PEG of 1.83. Over the last 12 months, SNX's PEG has been as high as 0.87 and as low as 0.53, with a median of 0.65.

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.


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Zacks Investment Research