Barclays sets a price target of $43 for NASDAQ:SCSC, indicating a potential increase of about 3.61%.Zacks Investment Research recognizes SCSC as a top value stock, placing it on the Zacks Rank #1 (Strong Buy) list.The stock's trading activity shows volatility with a year range between $53.90 and $28.75, suggesting potential for growth.SCSC, trading on the NASDAQ, is a company that has recently caught the attention of investors. On October 7, 2025, Guy Hardwick from Barclays set a price target of $43 for SCS ...

The near-term outlook for the Zacks Industrial Services industry appears encouraging, supported by rising e-commerce activity and a recent uptick in the production index. Industry participants are focused on strategic pricing, cost-reduction initiatives and enhancing productivity and efficiency to boost margins.Companies such as Fastenal (FAST) , MSC Industrial Direct Co., Inc. (MSM) and ScanSource (SCSC) are well-positioned to benefit from these trends. They are actively cutting costs, improving operationa ...

Investors looking for stocks in the Industrial Services sector might want to consider either ScanSource (SCSC) or SiteOne Landscape (SITE) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and ou ...

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point for fast-moving stocks, which can lead to limited upside or potential downside if growth fails to justify high valuations [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify promising candidates [3] Group 2: Company Spotlight - ScanSource (SCSC) - ScanSource (SCSC) has shown a four-week price change of 3.4%, indicating growing investor interest and positioning it well within the momentum investing framework [4] - Over the past 12 weeks, SCSC's stock has gained 11.5%, with a beta of 1.43, suggesting it moves 43% more than the market in either direction [5] - SCSC has a Momentum Score of B, indicating a favorable time to invest based on momentum [6] Group 3: Earnings and Valuation - SCSC has received a Zacks Rank 2 (Buy) due to upward trends in earnings estimate revisions, which attract more investor interest and support price increases [7] - The stock is currently trading at a Price-to-Sales ratio of 0.33, suggesting it is undervalued at 33 cents for each dollar of sales, providing significant room for growth [7] Group 4: Additional Opportunities - Besides SCSC, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies tailored to various investing styles, aiding in the identification of potential winning stocks [9]

Core Insights - Investors in the Industrial Services sector may consider ScanSource (SCSC) and SiteOne Landscape (SITE) as potential stocks for investment [1] Valuation Metrics - SCSC has a Zacks Rank of 1 (Strong Buy) while SITE has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook for SCSC [3] - The forward P/E ratio for SCSC is 10.99, significantly lower than SITE's forward P/E of 40.85, suggesting SCSC is undervalued [5] - SCSC's PEG ratio is 0.73, compared to SITE's PEG ratio of 2.43, indicating SCSC has a better valuation relative to its expected earnings growth [5] - SCSC has a P/B ratio of 1.09, while SITE's P/B ratio is 3.88, further supporting SCSC's position as a more attractive value option [6] - Based on these valuation metrics, SCSC has a Value grade of A, whereas SITE has a Value grade of C, highlighting SCSC's superior value proposition [6]

Group 1 - ScanSource, Inc. (SCSC) has reached an important support level and recently experienced a "golden cross" event, indicating a potential bullish breakout [1][2] - A golden cross occurs when a stock's short-term moving average, typically the 50-day, crosses above its long-term moving average, usually the 200-day, suggesting stronger breakouts [2][3] - SCSC has rallied 7.8% over the past four weeks and currently holds a 1 (Strong Buy) rating on the Zacks Rank, indicating a strong bullish sentiment [4] Group 2 - The positive earnings outlook for SCSC further supports the bullish case, with no earnings estimates decreasing in the past two months and two revisions higher [4][6] - The Zacks Consensus Estimate for SCSC has increased, reinforcing the potential for further gains in the near future [6]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than the traditional "buying low and selling high" approach, aiming for quicker profits [1] Group 1: Momentum Investing Strategy - Fast-moving trending stocks can be challenging to enter at the right time, as they may lose momentum if future growth does not justify their high valuations [2] - A safer strategy involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Company Analysis - ScanSource (SCSC) - ScanSource (SCSC) has shown a price increase of 7.8% over the past four weeks, indicating growing investor interest [4] - Over the past 12 weeks, SCSC's stock gained 10.8%, demonstrating its ability to deliver positive returns over a longer timeframe [5] - SCSC has a Momentum Score of A, suggesting it is an opportune time to invest in the stock for maximum momentum advantage [6] - The stock has received a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investors [7] - SCSC is trading at a Price-to-Sales ratio of 0.32, indicating it is relatively undervalued, as investors pay only 32 cents for each dollar of sales [7] Group 3: Additional Opportunities - Besides SCSC, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]

Core Insights - ScanSource, Inc. (SCSC) reported adjusted earnings of $1.02 per share for Q4 fiscal 2025, exceeding the Zacks Consensus Estimate of 91 cents, marking a 28% increase from the previous year's earnings of 80 cents [1][8] - The company achieved net revenues of $813 million in the quarter, an 8.9% increase year-over-year, surpassing the Zacks Consensus Estimate of $773 million [2][8] - For fiscal 2026, ScanSource projects net revenues between $3.1 billion and $3.3 billion, with adjusted EBITDA expected to be between $150 million and $160 million [9] Revenue Performance - Net revenues in the United States and Canada rose by 12.2% to $745 million, while international sales decreased by 17.4% to $68.2 million [2] - Specialty Technology Solutions' revenues increased by 9.2% to $789 million in Q4 fiscal 2025, driven by growth in North America [2] Profitability Metrics - The cost of sales for Q4 was $708 million, up 9.1% year-over-year, with gross profit totaling $105 million, an 8% increase from $97 million in the prior year [4] - Adjusted EBITDA rose by 13% year-over-year to $38.6 million, with an adjusted EBITDA margin of 4.7%, slightly up from 4.6% in the previous year [5] Cash Flow and Balance Sheet - As of June 30, 2025, the company reported cash and cash equivalents of $126 million, down from $185 million a year earlier [6] - Operating activities generated $112 million in cash for fiscal 2025, a decrease from $372 million in the prior year [6] Fiscal Year Performance - For fiscal 2025, adjusted earnings per share were $3.57, compared to $3.08 in the prior year, beating the Zacks Consensus Estimate of $3.47 [7] - Total revenues for fiscal 2025 were $3.04 billion, down 6.7% year-over-year, but still exceeding the Zacks Consensus Estimate of $3.01 billion [7] Share Price Performance - The company's shares have declined by 8.7% over the past year, contrasting with an 18% growth in the industry [10]

Core Viewpoint - ScanSource, Inc. is conducting its Q4 2025 earnings conference call to discuss operating results and future outlook [1][2][3]. Group 1: Company Overview - The conference call features key participants including the Chair and CEO, Mike Baur, and the Chief Financial Officer, Steve Jones [1][3]. - The company has provided an earnings infographic that accompanies the call, available in the Investor Relations section of its website [4]. Group 2: Financial Reporting - The call will cover both GAAP and non-GAAP results, with reconciliations provided on the company's website and in its Form 8-K [5].

Financial Data and Key Metrics Changes - Net sales for Q4 grew almost 9% year over year, while adjusted EBITDA grew 13% and non-GAAP net income grew 17% over last year [9] - Q4 non-GAAP earnings per share of $1.02 grew 27.5% year over year [10] - Full year net sales totaled just over $3 billion, a year-over-year decline of 6.7%, while gross profits grew by 2.4% to $408.6 million [12] - Non-GAAP net income of $85.1 million increased by 9.6% over last year, with full year free cash flow of $104 million representing 122% conversion of non-GAAP net income [13] Business Segment Data and Key Metrics Changes - Specialty Technology Solutions segment net sales increased 9% year over year and 16% quarter over quarter, driven by hardware growth in North America [10] - Intellisys and Advisory segment net sales and gross profits increased 1% year over year, but adjusted EBITDA declined 4% due to increased investments in SG&A [11] - Annual end user billing for Intelisys increased 4.5% year over year, totaling approximately $2.8 billion [12] Market Data and Key Metrics Changes - Brazil's business model is transitioning to focus more on cloud and recurring products, with growth in local currency despite economic challenges [51][54] - The company is experiencing competitive pressures in the Intelisys segment due to private equity-backed competitors [39] Company Strategy and Development Direction - The company is focusing on building capabilities in converged solutions, integrating hardware, software, and services [7] - A new business development team, LaunchPoint, has been created to assist emerging technology companies [6] - The company aims to increase the percentage of gross profits from recurring revenues to 50% over the next three years [44][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in growth opportunities despite navigating a dynamic macro environment [15][16] - The company anticipates low single-digit growth in the first half of fiscal year 2026, with expectations for acceleration in the second half [15][16] Other Important Information - The company ended Q4 with $126 million in cash and a net debt leverage ratio of approximately zero [13] - Share repurchases totaled $25 million for the quarter, with ongoing acquisition targets to expand capabilities [14] Q&A Session Summary Question: Discussion on midterm targets and free cash flow - Management emphasized the importance of free cash flow conversion as a metric for long-term outlook and capital allocation priorities [21][22] Question: Strategic investments in the Intelisys segment - Management discussed a new partner segmentation strategy and investments to support growth in the Intelisys business [27][29] Question: Expectations for the Intelisys business in 2026 - Management indicated a focus on adding new suppliers and sales resources to drive growth in the Intelisys segment [41] Question: Guidance for next year and factors affecting EBITDA - Management highlighted the importance of investments and mix in determining the range for adjusted EBITDA growth [42][43] Question: Recurring revenue as a driver of gross profits - Management noted that acquisitions and emerging technologies will contribute to increasing recurring revenue [44][46] Question: Growth in technology segment and market outlook for Brazil - Management acknowledged strong growth in the technology segment but noted challenges in Brazil due to economic conditions [49][51]