SNX Stock Analysis — TD SYNNEX Corporation
Sector: Tech Distribution
AI Verdict
SNX is cheap for the growth you're getting, but the market is only rewarding this if the company's scale and vendor lock-in actually deliver the big earnings jump analysts expect.
Competitive Moat
TD SYNNEX operates as a global IT distributor, leveraging scale and deep vendor relationships to secure preferential pricing and access to the broadest range of hardware and software. Its defensibility comes from high switching costs for enterprise customers and exclusive distribution agreements with top tech brands.
Summary
SNX is drawing attention for its sharp expected earnings jump, with analysts forecasting 68.0% EPS growth in the next year.
Where It Stands
SNX trades at 13.3x next year's earnings, which is a discount to the tech hardware sector median of 25x, while delivering 68.0% forward EPS growth and a trailing P/E of 22.3x.
Key Metrics
- Trailing P/E: 22.3x
- Forward P/E: 13.3x
- PEG Ratio: 0.33
- Earnings Growth: +0.7%
- Revenue Growth: +0.1%
- Dividend Yield: 0.01%
- 52-Week High: $242.49
- 52-Week Low: $118.35
Analyst Consensus
13 Buy · 4 Hold · 0 Sell (17 analysts)
Bull Case
A 13.3x forward P/E for 68.0% expected EPS growth is cheap for the growth on offer, especially given the company's scale-driven moat.
Bear Case
If the forward P/E reverts to the sector median of 25x without the projected growth materializing, the stock could see a sharp rerating downward.
Catalyst to Watch
Watch for next quarter's earnings report to confirm whether the 68.0% EPS growth expectation is tracking in line with analyst forecasts.