Have you been paying attention to shares of TD SYNNEX (SNX)? Shares have been on the move with the stock up 14.5% over the past month. The stock hit a new 52-week high of $264.81 in the previous session. TD SYNNEX has gained 73.9% since the start of the year compared to the 21.3% gain for the Zacks Computer and Technology sector and the -14.8% return for the Zacks Computers - IT Services industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on March 31, 2026, TD SYNNEX reported EPS of $4.73 versus consensus estimate of $3.26.
For the current fiscal year, TD SYNNEX is expected to post earnings of $16.63 per share on $68.14 in revenues. This represents a 26.08% change in EPS on a 9.02% change in revenues. For the next fiscal year, the company is expected to earn $18.48 per share on $72.1 in revenues. This represents a year-over-year change of 11.11% and 5.8%, respectively.
Valuation Metrics
TD SYNNEX may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
TD SYNNEX has a Value Score of B. The stock's Growth and Momentum Scores are D and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 15.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 13.5X. On a trailing cash flow basis, the stock currently trades at 14.5X versus its peer group's average of 11.4X. Additionally, the stock has a PEG ratio of 1.08. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, TD SYNNEX currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if TD SYNNEX passes the test. Thus, it seems as though TD SYNNEX shares could still be poised for more gains ahead.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power .
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
TD SYNNEX Corporation (SNX): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).