Stock of the Day

October 7, 2022

TD SYNNEX (SNX)

$256.96
-$6.80 (-2.6%)
Market Cap: $21.04B

About TD SYNNEX

TD SYNNEX Corporation operates as a distributor and solutions aggregator for the information technology (IT) ecosystem. The company offers personal computing devices and peripherals, mobile phones and accessories, printers, supplies, and endpoint technology software; and data center technologies, such as hybrid cloud, security, storage, networking, servers, technology software, and converged and hyper-converged infrastructure, as well as computing components. It also provides systems design and rack integration, build-to-order, and configure-to-order assembly; and thermal testing, power-draw testing, burn-in, and quality and logistics support. In addition, the company offers outsourced fulfillment, virtual distribution, and direct ship to end-users; shipping documents generation, multi-level serial number tracking, and configured products and online order and shipment tracking, as well as turn-key logistics solutions. Further, it provides public cloud solutions in productivity and collaboration, IaaS, or Infrastructure as a Service, PaaS, or Platform as a Service, SaaS, or Software as a Service, security, mobility, IoT, and other hybrid solutions. Additionally, the company offers online services; provides net terms, third party leasing, floor plan financing, and letters-of-credit backed financing and arrangement; and leases products and provides device-as-a-service, as well as offers direct mail, external media advertising, reseller product training, targeted telemarketing campaigns, national and regional trade shows, trade groups, database analysis, print on demand services, and web-based marketing. It serves value-added resellers, corporate resellers, government resellers, system integrators, direct marketers, retailers, and managed service providers. The company was formerly known as SYNNEX Corporation and changed its name to TD SYNNEX Corporation in September 2021. TD SYNNEX Corporation was founded in 1974 and is headquartered in Fremont, California.

Today's Trend

TD SYNNEX Corporation (NYSE: SNX) shares have declined amid ETF selling, uncertainty surrounding the company’s BlueStar acquisition and recent trading volatility. However, improved earnings estimates and analyst price targets suggest some investors remain constructive on the company’s longer-term outlook.

  • Zacks raises earnings forecasts. Zacks Research increased its FY2026 EPS estimate to $20.25 from $17.96 and lifted its FY2027 forecast to $23.03 from $20.53. Estimates for several upcoming quarters and FY2028 were also raised, while Zacks maintained a “Strong-Buy” rating. MarketBeat TD SYNNEX analyst estimates
  • Analyst targets imply additional upside. The average Wall Street price target indicates roughly 27% potential upside, although the reliability of price targets as a trading indicator is limited. The median target cited by Quiver Quantitative was $307.50. Zacks TD SYNNEX price target article
  • BlueStar acquisition remains a sentiment factor. TD SYNNEX’s agreement to acquire BlueStar expands its presence in automatic identification, data capture, RFID, point-of-sale, robotics and security technologies. The absence of disclosed financial terms leaves investors evaluating the deal’s strategic benefits against potential integration and valuation risks.
  • ETF selling added near-term pressure. ETFs recorded approximately $21.2 million in net selling of SNX shares on October 14, creating a potential technical headwind independent of the company’s operating performance. TD SYNNEX ETF selling article
  • Profit-taking and insider selling may be weighing on shares. Recent volatility following TD SYNNEX’s strong fiscal third-quarter results has encouraged position adjustments. Quiver also reported 68 insider sales and no insider purchases over the past six months, a signal that may reinforce short-term investor caution.
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