Synnex (SNX) closed the most recent trading day at $84.98, moving +1.17% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.83%. Meanwhile, the Dow gained 0.93%, and the Nasdaq, a tech-heavy index, added 0.9%.
Coming into today, shares of the high-tech contractor had lost 14.43% in the past month. In that same time, the Computer and Technology sector lost 2.06%, while the S&P 500 lost 2.38%.
SNX will be looking to display strength as it nears its next earnings release. On that day, SNX is projected to report earnings of $2.86 per share, which would represent year-over-year growth of 11.28%. Meanwhile, our latest consensus estimate is calling for revenue of $5.68 billion, up 15.72% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.10 per share and revenue of $22.57 billion. These totals would mark changes of +11.11% and +12.56%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for SNX. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 currently has a Zacks Rank of #2 (Buy).
Digging into valuation, SNX currently has a Forward P/E ratio of 6.94. This represents a discount compared to its industry's average Forward P/E of 35.42.
Investors should also note that SNX has a PEG ratio of 0.58 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. Business - Software Services stocks are, on average, holding a PEG ratio of 2.61 based on yesterday's closing prices.
The Business - Software Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 100, putting it in the top 40% 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.
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