The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Synchronoss (SNCR) .Synchronoss currently has an average brokerag ...

Synchronoss (SNCR) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock. Shares of this mobile services company have returned -4.1% over the past month versus the Zacks S&P 500 composite's +3.5% change. The Zacks Internet - Software industry, to which Synchronoss belongs, has gained 9% over this period. Now the key question is: Where could the stock be headed in the near term? Althou ...

Synchronoss Technologies (SNCR) shares are one of the cheaper stocks in the broader Zacks Computer & Technology sector, with a Value Score of A. SNCR stock is trading at a significant discount with a forward 12-month Price/Sales (P/S) ratio of 0.73X compared with the sector's 6.2X. It is cheaper than its Zacks Internet Software industry peer Aspen Technology (AZPN) , which is currently trading at a forward 12-month P/S of 12.31X. SNCR's cheap valuation is attractive for investors. However, is it worth buyin ...

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Synchronoss (SNCR), and suggests that while the average brokerage recommendation indicates a buy, investors should be cautious and validate this with other analysis tools like the Zacks Rank [1][3][12]. Brokerage Recommendations - Synchronoss has an average brokerage recommendation (ABR) of 1.67, which is between Strong Buy and Buy, based on recommendations from three brokerage firms, with 66.7% of these being Strong Buy [2]. - Despite the positive ABR, studies indicate that brokerage recommendations often do not effectively guide investors towards stocks with the highest potential for price appreciation [3][4]. Analyst Bias - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings, with a ratio of five "Strong Buy" recommendations for every "Strong Sell" [4][8]. - This bias suggests that the interests of brokerage firms may not align with those of retail investors, leading to a lack of reliable insight into future stock price movements [5]. Zacks Rank Comparison - The Zacks Rank, which classifies stocks from 1 (Strong Buy) to 5 (Strong Sell), is based on earnings estimate revisions and is considered a more reliable indicator of near-term price performance compared to ABR [6][9]. - The Zacks Rank is updated more frequently and reflects timely changes in earnings estimates, unlike the potentially outdated ABR [10]. Current Earnings Estimates - For Synchronoss, the Zacks Consensus Estimate for the current year remains unchanged at $1.19, indicating steady analyst views on the company's earnings prospects [11]. - The unchanged consensus estimate has resulted in a Zacks Rank of 3 (Hold) for Synchronoss, suggesting caution despite the Buy-equivalent ABR [12].

Company Overview - Synchronoss (SNCR) shares increased by 5.1% to close at $14.11, following notable trading volume, contrasting with a 5.7% loss over the past four weeks [1] - The company is experiencing strong cloud subscriber growth, with a 6.1% increase in the number of cloud subscribers in Q2 2024, contributing to 5.9% of total revenues [1] Earnings Expectations - The upcoming quarterly earnings report is expected to show earnings of $0.25 per share, reflecting a year-over-year decline of 44.4%, with revenues projected at $43.31 million, down 22.2% from the previous year [2] - The consensus EPS estimate for Synchronoss has remained unchanged over the last 30 days, indicating that stock price movements may not continue without trends in earnings estimate revisions [3] Industry Context - Synchronoss is part of the Zacks Internet - Software industry, where another company, eGain (EGAN), saw a 2% increase to $5.17, but has returned -29.5% over the past month [3] - eGain's consensus EPS estimate has changed by -200% over the past month to $0.01, representing a year-over-year decline of 91.7%, and it currently holds a Zacks Rank of 3 (Hold) [4]

Synchronoss Technologies' (SNCR) announced the latest version of its carrier-grade Personal Cloud platform on Wednesday. This will enable service providers to deliver enhanced cloud solutions that are expected to boost subscriber engagement. The new Synchronoss Personal Cloud provides a customized white-label solution for service providers, empowering subscribers to manage, back up and optimize their digital content across various mobile devices, laptops, and computers. With the introduction of the Memories ...

Core Viewpoint - Synchronoss Technologies (SNCR) has significantly outperformed the Zacks Computer & Technology sector and the Zacks Internet Software industry in year-to-date returns, achieving 111% compared to 20.8% and 22.1% respectively [1] Group 1: Financial Performance - In Q2 2024, SNCR experienced a 6.1% growth in cloud subscribers, contributing to 5.9% of total revenues, with quarterly recurring revenues making up 90.5% of total revenues [2] - For 2024, SNCR anticipates revenues between $170 million and $175 million, reflecting a 5.8% year-over-year growth, with recurring revenues expected to be between 85% and 90% of total revenues [4] - Adjusted EBITDA is projected to be between $43 million and $46 million, an increase from the previous estimate of $42 million to $45 million [5] - The Zacks Consensus Estimate for 2024 earnings is now $1.19 per share, up from 56 cents, indicating an 184.4% year-over-year increase [6] Group 2: Growth Prospects - SNCR expects to achieve double-digit revenue growth over the next two to three years, with recurring revenues projected to be at least 90% of total revenues [7] - The company has a strong partner base, including collaborations with Verizon and SoftBank, which are expected to enhance its market presence [8] Group 3: Financial Health - As of June 30, 2024, SNCR had a cash balance of $23.65 million and generated a free cash flow of $7.6 million in Q2 2024 [9] - The company reduced its cost of capital by repurchasing outstanding preferred stock and Senior Notes, resulting in annual pre-tax cost savings of over $2 million [10] Group 4: Valuation and Market Position - SNCR is currently trading at a forward 12-month Price/Sales ratio of 0.79X, significantly lower than the sector's 6.26X, indicating a discounted valuation despite strong growth prospects [11] - The stock is considered attractive for growth-oriented investors, with a Zacks Rank of 1 (Strong Buy) [12]

Group 1 - Synchronoss (SNCR) stock closed at $13.12, reflecting a +1% change from the previous trading day, outperforming the S&P 500's daily gain of 0.25% [1] - Over the past month, Synchronoss shares appreciated by 1.25%, while the Computer and Technology sector experienced a loss of 0.11% and the S&P 500 gained 1.65% [1] Group 2 - The upcoming earnings report for Synchronoss is expected to show an EPS of $0.25, which is a decrease of 44.44% from the same quarter last year, with quarterly revenue anticipated at $43.31 million, down 22.18% year-over-year [2] - Full-year Zacks Consensus Estimates predict earnings of $1.19 per share and revenue of $173.36 million, indicating a year-over-year earnings increase of 184.4% and a revenue decrease of 19.17% [3] Group 3 - Recent changes in analyst estimates for Synchronoss are crucial as they reflect short-term business trends, with positive revisions indicating analysts' confidence in the company's performance [4] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Synchronoss as 1 (Strong Buy), with an average annual return of +25% for 1 ranked stocks since 1988 [6] Group 4 - Synchronoss has a Forward P/E ratio of 10.92, which is significantly lower than the industry's average Forward P/E of 31.07, indicating a valuation discount [7] - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 73, placing it in the top 29% of over 250 industries [7]

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Whi ...

The latest trading session saw Synchronoss (SNCR) ending at $13.67, denoting a +0.81% adjustment from its last day's close. The stock's change was more than the S&P 500's daily gain of 0.75%. Meanwhile, the Dow experienced a rise of 0.58%, and the technology-dominated Nasdaq saw an increase of 1%. The mobile services company's stock has climbed by 14.62% in the past month, exceeding the Computer and Technology sector's gain of 2.48% and the S&P 500's gain of 4.03%. The investment community will be paying cl ...