Is It Time To Consider Buying SYNNEX Corporation (NYSE:SNX)?
SYNNEX Corporation (NYSE: SNX) isn't the largest company in the market, but has led the NYSE winners with a relatively large price hike in recent weeks. Since many analysts cover the mid-cap stock, we can assume that price-sensitive announcements have already been included in the share price of the stock. But what if the stock is still a bargain? Let's take a closer look at SYNNEX's valuation and outlook to see if there is still an opportunity.
Check out our latest analysis for SYNNEX
What is the chance in SYNNEX?
Good news for investors - SYNNEX is still trading at a relatively cheap price based on my multiple price model, where I compare the company's value for money with the industry average. In this case, I used price-to-earnings (PE) because there isn't enough information to reliably predict the stock's cash flows. I find the SYNNEX quote of 15.76x is below the comparative average of 25.4x, indicating that the stock is trading at a lower price compared to the electronics industry. More interestingly, the SYNNEX share price is quite volatile, which gives us more buying opportunities as the share price could go down (or go up) in the future. This is based on the high beta which is a good indicator of how much the stock is moving relative to the rest of the market.
What does the future of SYNNEX look like?
Profit and sales growth
The future outlook is an important consideration when looking to buy a stock, especially if, as an investor, you are looking for growth in your portfolio. Buying a great company with solid prospects at a great price is always a good investment. So let's also look at the company's future expectations. With a relatively subdued earnings growth of 9.9% expected for the next year, however, growth does not seem to be a major driver for a purchase decision for SYNNEX, at least in the short term.
What this means for you:
Are you a shareholder? While growth is relatively subdued with SNX currently trading below the industry PE ratio, it may be a good time to start accumulating more of your stock holdings. However, there are other factors to consider, such as financial health, that could explain the current price multiplier.
Are you a potential investor? If you've been keeping your eye on SNX for a while, now may be time to take a dip. The future earnings outlook is not yet fully reflected in the current share price, so it is not too late to buy SNX. Before making any investment decisions, however, you should consider other factors, such as: B. The track record of the management team to make an informed assessment.
While the quality of the return is important, it is equally important to consider the risks SYNNEX is exposed to at this point in time. We found two SYNNEX warning signs on Simply Wall Street that we think deserve your attention.
If you are no longer interested in SYNNEX, you can use our free platform to view our list of over 50 other stocks with high growth potential.
This article from Simply Wall St is of a general nature. It is not a recommendation to buy or sell stocks and does not take into account your goals or your financial situation. We want to provide you with a long-term, focused analysis based on fundamental data. Note that our analysis may not take into account the latest price sensitive company announcements or quality materials. Simply Wall St has no position in the stocks mentioned.
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