Are Investors Undervaluing Synnex (SNX) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Synnex (SNX). SNX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 8.54 right now. For comparison, its industry sports an average P/E of 21.11. SNX's Forward P/E has been as high as 10.87 and as low as 6.31, with a median of 8.44, all within the past year.
Investors should also note that SNX holds a PEG ratio of 0.71. 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 1.94. SNX's PEG has been as high as 0.71 and as low as 0.71, with a median of 0.71, all within the past year.
These are just a handful of the figures considered in Synnex's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SNX is an impressive value stock right now.
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