Synnex Stock Story

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SNX
 Stock
  

USD 104.54  2.03  1.90%   

By Vlad Skutelnik
Macroaxis Story
Synnex Corp Tangible Asset Value is fairly stable at the moment as compared to the past year. Synnex Corp reported Tangible Asset Value of 3.99 Billion in 2021. Working Capital is likely to rise to about 1.5 B in 2022, whereas Earnings Before Interest Taxes and Depreciation Amortization EBITDA are likely to drop slightly above 536.4 M in 2022. The goal of this article is to forecast a future value of Synnex Corp using technical analysis. What exactly are Synnex Corp investors should expect in July?
Published over a month ago
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Our projection for Synnex Corp (NYSE:SNX) in July

Synnex Corp has a beta of 1.2057. Let's try to break down what Synnex's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Synnex Corp will likely underperform. The beta indicator helps investors understand whether Synnex Corp moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Synnex deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Synnex Corp. Regardless of method or technology, to accurately forecast the stock or bond market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Synnex Corp

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Synnex Corp's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Synnex Corp in the context of predictive analytics.
Hype
Prediction
Details
Intrinsic
Valuation
Details
Naive
Forecast
Details
8 Analysts
Consensus
Details
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Synnex Corp. Your research has to be compared to or analyzed against Synnex Corp's peers to derive any actionable benefits. When done correctly, Synnex Corp's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Synnex Corp.

How important is Synnex Corp's Liquidity

Synnex Corp financial leverage refers to using borrowed capital as a funding source to finance Synnex Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Synnex Corp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Synnex Corp's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Synnex Corp, but it might be worth checking our own buy vs. sell analysis

Sale by Richard Hume of 2100 shares of Synnex Corp

Legal trades by Synnex Corp insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Synnex insider trading alert for sale of common stock by Richard Hume, Chief Executive Officer, on 17th of August 2022. This event was filed by Td Synnex Corp with SEC on 2022-08-17. Statement of changes in beneficial ownership - SEC Form 4. Richard Hume currently serves as president, chief executive officer, director of Synnex Corp [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking it down a bit more

Synnex Corp price slide over the last few months created some momentum for investors as it was traded today as low as 93.39 and as high as 99.65 per share. The company directors and management were not very successful in positioning the company resources to exploit market volatility in May. However, diversifying your holdings with Synnex Corp or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 2.27. The current volatility is consistent with the ongoing market swings in May 2022 as well as with Synnex Corp unsystematic, company-specific events.

Margin Breakdown

1.26
Profit Margin
2.04
Operating Margin
2.3
EBITDA Margin
Operating Margin2.04
EBITDA Margin2.3
Gross Margin6.29
Profit Margin1.26

Our perspective of the current Synnex Corp slide

Synnex Corp current maximum drawdown rises over 11.83. Synnex Corp exhibits very low volatility with skewness of -0.46 and kurtosis of 0.25. However, we advise investors to further study Synnex Corp technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Synnex Corp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Synnex Corp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Synnex Corp Implied Volatility

Synnex Corp's implied volatility exposes the market's sentiment of Synnex Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Synnex Corp's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Synnex Corp stock will not fluctuate a lot when Synnex Corp's options are near their expiration.

The Bottom Line

While some other firms in the information technology services industry are either recovering or due for a correction, Synnex may not be as strong as the others in terms of longer-term growth potentials. While some investors may not share our view, we believe it may be a good time to increase your existing holdings in Synnex as the risk-reward trade off is appealing enough to hold a position. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Synnex Corp.

Editorial Staff

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. View Profile
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Synnex Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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