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Is Synnex (SNX) Stock Undervalued Right Now?

Zacks Equity Research

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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

Synnex (SNX) is a stock many investors are watching right now. SNX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 8.78, while its industry has an average P/E of 21.78. 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 will also notice that SNX has a PEG ratio of 0.73. 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 1.91. SNX's PEG has been as high as 0.74 and as low as 0.70, with a median of 0.73, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Synnex is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SNX feels like a great value stock at the moment.


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