Stock of the Day

October 7, 2022

TD SYNNEX (SNX)

$254.84
-$8.93 (-3.4%)
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 declined as investors weighed uncertainty surrounding its BlueStar acquisition and recent volatility. The company’s strong earnings outlook and favorable analyst revisions provide potential support, but deal-related questions and insider selling appear to be weighing on sentiment.

  • Analysts raised earnings forecasts. Zacks Research increased its FY2026 EPS estimate to $20.25 from $17.96, FY2027 EPS to $23.03 from $20.53, and FY2028 EPS to $26.30 from $26.10. It also raised several quarterly estimates and maintained a “Strong-Buy” rating. Zacks Research estimate updates
  • Wall Street’s valuation outlook remains constructive. The average analyst price target implies approximately 27.4% upside, although target prices are not always reliable indicators of near-term performance. Recent quarterly results were also strong, with revenue of $21.6 billion and non-GAAP EPS of $5.68, both above company guidance. Zacks analyst price target article
  • TD SYNNEX is expanding into additional technology markets. The announced acquisition of BlueStar would broaden the company’s exposure to automatic identification and data capture, RFID, point-of-sale, robotics, and security technologies. However, TD SYNNEX has not disclosed financial terms, leaving investors unable to assess the deal’s purchase price, financing needs, or expected returns. TD SYNNEX BlueStar acquisition and volatility analysis
  • Deal uncertainty and selling pressure are limiting investor confidence. SNX has experienced sharp swings since its late-September earnings release, encouraging profit-taking and position adjustments. In addition, reported insider activity showed 68 open-market sales and no purchases over the past six months, including sales by senior executives. The lack of fresh company news may have amplified the pullback.
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