Stock Analysis

At US$95.29, Is TD SYNNEX Corporation (NYSE:SNX) Worth Looking At Closely?

NYSE:SNX
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TD SYNNEX Corporation (NYSE:SNX), is not the largest company out there, but it saw significant share price movement during recent months on the NYSE, rising to highs of US$103 and falling to the lows of US$90.14. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether TD SYNNEX's current trading price of US$95.29 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at TD SYNNEX’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for TD SYNNEX

What's The Opportunity In TD SYNNEX?

Great news for investors – TD SYNNEX is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $151.66, but it is currently trading at US$95.29 on the share market, meaning that there is still an opportunity to buy now. However, given that TD SYNNEX’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

Can we expect growth from TD SYNNEX?

earnings-and-revenue-growth
NYSE:SNX Earnings and Revenue Growth November 6th 2023

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 36% over the next couple of years, the future seems bright for TD SYNNEX. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? Since SNX is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on SNX for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy SNX. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

If you want to dive deeper into TD SYNNEX, you'd also look into what risks it is currently facing. While conducting our analysis, we found that TD SYNNEX has 2 warning signs and it would be unwise to ignore them.

If you are no longer interested in TD SYNNEX, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Valuation is complex, but we're helping make it simple.

Find out whether TD SYNNEX is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.