Are Investors Undervaluing Synnex (SNX) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company value investors might notice 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 P/E ratio of 10.54 right now. For comparison, its industry sports an average P/E of 24.08. Over the past 52 weeks, SNX's Forward P/E has been as high as 12.75 and as low as 4.67, with a median of 9.98.
Investors will also notice that SNX has a PEG ratio of 1.12. 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. SNX's industry has an average PEG of 2.56 right now. Over the last 12 months, SNX's PEG has been as high as 1.36 and as low as 0.45, with a median of 1.03.
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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.