TD SYNNEX (SNX): Assessing Valuation After a 34% Year-to-Date Rally

TD SYNNEX (SNX) has quietly outperformed many tech peers this year, with the stock up roughly 34% year to date. That move invites a closer look at whether the current valuation still leaves upside.

See our latest analysis for TD SYNNEX.

The latest leg higher, including a roughly 3.3% 1 month share price return and a 33.6% year to date share price gain to about $155.66, adds to an already solid three year total shareholder return of just over 70%. This suggests momentum is still broadly constructive rather than exhausted.

If TD SYNNEX has you rethinking what is working in tech, it could be worth scanning high growth tech and AI stocks to see which other names are starting to build similar momentum.

With solid earnings growth, a sizeable intrinsic value discount, and analyst targets still sitting above the current price, the key question is straightforward: is TD SYNNEX attractive at this level, or is future growth already priced in?

Most Popular Narrative: 12.7% Undervalued

With TD SYNNEX last closing at $155.66 against a narrative fair value of $178.36, the story points to meaningful upside still on the table.

The continued enterprise wide digital transformation and AI adoption, highlighted by double digit growth in software (especially in cloud, cybersecurity, virtualization, and infrastructure software), is extending TD SYNNEX's addressable market and generating higher recurring revenue streams likely to drive consistent revenue and margin expansion.

Read the complete narrative.

Want to see how steady growth assumptions, rising margins, and a re rated earnings multiple combine into that upside case? The full narrative spells it out.

Result: Fair Value of $178.36 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, a maturing PC refresh cycle and persistent margin pressure in higher value units could quickly challenge the current upside narrative.

Find out about the key risks to this TD SYNNEX narrative.

Build Your Own TD SYNNEX Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a custom view in just minutes, Do it your way.

A great starting point for your TD SYNNEX research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

Before you move on, consider your next opportunity by scanning focused stock lists that highlight where strong fundamentals, momentum, and future potential already align.

• Look for potential multi baggers early by reviewing these 3611 penny stocks with strong financials that combine small market caps with balance sheets and earnings trajectories that can withstand real world shocks.
• Explore the AI transformation by reviewing these 26 AI penny stocks where machine learning, automation, and data infrastructure are already reflected in current revenue and margins.
• Search for value opportunities by filtering for these 908 undervalued stocks based on cash flows that trade below measures such as cash flow, which may offer a cushion if sentiment cools and potential upside if it improves.

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.

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