FREMONT, Calif. and CLEARWATER, Fla.--(BUSINESS WIRE)--TD SYNNEX (NYSE: SNX) today announced financial results for the fiscal third quarter ended August 31, 2025. Consolidated Financial Highlights for the Fiscal 2025 Third Quarter: GAAP ($ in millions, except earnings per share)       Q3 FY25 Q3 FY24 Net Change from Q3 FY24 Revenue $ 15,650.9 $ 14,684.7 6.6 % Gross profit $ 1,129.9 $ 961.0 17.6 % Gross margin 7.22 % 6.54 % 68 bps  Operating income  . ...

Company Overview - TD SYNNEX Corporation is a significant player in the business process services sector, distributing a variety of products including PC systems, mobile phones, IT systems, and consumer electronics. The company also offers systems design, logistics, cloud services, and marketing services to resellers, system integrators, and retailers, positioning itself as a key player in the technology distribution industry [1] Price Target Trends - The consensus price target for TD SYNNEX has shown an upward trend over the past year, increasing from $148.22 a year ago to $155.6 in the last quarter, and further to $173 in the past month, indicating growing optimism among analysts regarding the company's stock performance [2][6] Financial Performance - In the second quarter, TD SYNNEX reported strong financial results, surpassing guidance with significant revenue growth, improved profit margins, and impressive cash generation. The company's business model, focusing on scale and efficient management of working capital, supports its high-quality economic framework [3][6] Upcoming Earnings Report - The upcoming third-quarter earnings report is expected to reflect higher earnings for TD SYNNEX, with the stock having already increased by 5.8% since the last earnings report 30 days ago. Despite a lower price target of $130 from analyst Matthew Sheerin, the overall sentiment remains positive, with a valuation analysis suggesting a fair value between $170 and $175 [4][5] Investment Case - The strong financial performance of TD SYNNEX, along with a trailing free cash flow yield of 6% and steady dividend growth, strengthens the investment case for the company [5]

Group 1 - TD SYNNEX Corporation is set to release its third-quarter earnings results on September 25, with expected earnings of $3.05 per share, an increase from $2.86 per share in the same period last year [1] - The company is projected to report quarterly revenue of $15.11 billion, compared to $14.68 billion a year earlier [1] - On August 27, TD SYNNEX entered a multi-year strategic collaboration with AWS to enhance AI and cloud growth [2] Group 2 - Barrington Research analyst Vincent Colicchio maintained an Outperform rating with a price target of $156 for TD SYNNEX [4] - Morgan Stanley analyst Erik Woodring raised the price target from $155 to $173 while maintaining an Overweight rating [4] - RBC Capital analyst Ashish Sabadra increased the price target from $145 to $165, maintaining an Outperform rating [4] - B of A Securities analyst Ruplu Bhattacharya raised the price target from $156 to $170 while maintaining a Buy rating [4] - JP Morgan analyst Joseph Cardoso raised the price target from $143 to $160 while maintaining a Neutral rating [4]

Core Viewpoint - The comparison between TD SYNNEX (SNX) and Hoya Corp. (HOCPY) indicates that SNX is currently a more attractive option for value investors due to its stronger earnings outlook and favorable valuation metrics [1][3][7]. Valuation Metrics - SNX has a forward P/E ratio of 12.49, significantly lower than HOCPY's forward P/E of 33.49, suggesting that SNX is undervalued relative to its earnings potential [5]. - The PEG ratio for SNX is 1.17, while HOCPY's PEG ratio is 3.06, indicating that SNX offers better value when considering expected earnings growth [5]. - SNX's P/B ratio stands at 1.5, compared to HOCPY's P/B of 7.3, further supporting the notion that SNX is a more attractive investment from a valuation perspective [6]. Earnings Outlook - SNX is experiencing an improving earnings outlook, which is a key factor in its favorable Zacks Rank of 2 (Buy), while HOCPY holds a Zacks Rank of 4 (Sell) [3][7].

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, as stocks may lose momentum when their valuations exceed future growth potential [2] - Investing in bargain stocks that exhibit recent price momentum can be a safer strategy, utilizing tools like the Zacks Momentum Style Score to identify promising stocks [3] Group 2: TD SYNNEX (SNX) Analysis - TD SYNNEX (SNX) has shown a four-week price change of 1.9%, indicating growing investor interest [4] - Over the past 12 weeks, SNX has gained 11.6%, with a beta of 1.35, suggesting it moves 35% more than the market [5] - SNX has a Momentum Score of A, indicating a favorable time to invest based on momentum [6] Group 3: Earnings Estimates and Valuation - SNX has received upward revisions in earnings estimates, earning a Zacks Rank 2 (Buy), which is associated with strong momentum effects [7] - The stock is trading at a Price-to-Sales ratio of 0.21, suggesting it is undervalued at 21 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides SNX, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Zacks offers over 45 Premium Screens tailored to different investing styles, aiding in stock selection [9]

Group 1 - The stock of TD SYNNEX Corporation (NYSE: SNX) has increased by 16% including dividends since the last publication, indicating a strong investment thesis [1] - The investment strategy focuses on identifying high probability long-term compounders by analyzing fundamental value drivers of business economics [2] - The company maintains a beneficial long position in SNX shares through various financial instruments [3]

Group 1 - The stock of TD SYNNEX Corporation (NYSE: SNX) has increased by 16% since the last publication, including dividends, indicating a strong investment thesis [1] - The investment strategy focuses on identifying long-term compounders by analyzing fundamental value drivers and buying at prices that reflect intrinsic worth [2] - The analyst holds a beneficial long position in SNX shares through various financial instruments, expressing personal opinions without external compensation [3]

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgent need for energy to support its growth [1][2][3] - A specific company is highlighted as a key player in the AI energy sector, owning critical energy infrastructure assets that are essential for meeting the increasing energy demands of AI technologies [3][7][8] AI and Energy Demand - AI technologies, particularly large language models like ChatGPT, are extremely energy-intensive, with data centers consuming as much energy as small cities [2] - The energy requirements for AI are expected to escalate, leading to potential crises in power grids and rising electricity prices [2] - Industry leaders, including Sam Altman and Elon Musk, have warned about the impending energy challenges facing AI development [2] Investment Opportunity - The company in focus is positioned to capitalize on the surge in demand for electricity driven by AI data centers, making it a potentially lucrative investment [3][6] - This company is not a chipmaker or cloud platform but is crucial for providing the necessary energy infrastructure [3][6] - It is noted for being debt-free and having significant cash reserves, which is advantageous compared to other energy firms burdened with debt [8] Market Position and Valuation - The company is involved in various sectors, including nuclear energy, LNG exportation, and renewable fuels, positioning it strategically within the energy market [7][8] - It is trading at a low valuation of less than 7 times earnings, making it an attractive option for investors looking for undervalued stocks in the AI and energy space [10] Future Growth Potential - The company is expected to benefit from the ongoing trends of onshoring and increased U.S. LNG exports, particularly under the current political climate [5][14] - There is a growing interest from hedge funds in this company, indicating its potential for significant returns as it remains under the radar of mainstream investors [9][10]

Core Insights - Newforma has announced a strategic partnership with Datech, enhancing access to project and information management tools for the AECO industry globally [1][2][3] Group 1: Partnership Details - The partnership allows TD SYNNEX to serve as an official distributor for Newforma, significantly expanding its market reach across North America, Europe, and the Middle East [2][5] - This collaboration aims to provide AECO firms with easier access to Newforma's advanced solutions, improving communication and collaboration while managing project complexity [2][3] Group 2: Product Offerings - Newforma Konekt is introduced as a cloud-based platform that centralizes project information, reducing risks and eliminating costly rework [4] - The Info Track module for Konekt is highlighted as a unique solution for AECO teams, centralizing access to project conversations, files, tasks, and decisions [4] Group 3: Strategic Goals - The partnership aligns with Newforma's "New Newforma" brand campaign, encouraging AECO professionals to reimagine project delivery [3] - Newforma's CEO emphasized that this partnership will scale their impact and accelerate the adoption of their cloud-hosted platform [5] Group 4: Company Background - Newforma has over 20 years of experience in project and information management, serving more than 4.5 million users and 1,500 firms globally [7] - Datech specializes in design, digital twin, and visualization solutions, supporting partners with advanced technologies and value-added services [9]

Company Overview - TD SYNNEX is a leading global IT distributor and solutions aggregator, providing a comprehensive range of technology distribution, logistics, and integration services [11] - The company was rebranded from SYNNEX Corporation to TD SYNNEX in September 2021 following its merger with Tech Data Corporation, which significantly expanded its global reach and vendor partnerships [11] Investment Analysis - TD SYNNEX currently holds a 3 (Hold) rating on the Zacks Rank, with a VGM Score of B [12] - The company has a Momentum Style Score of B, and its shares have increased by 2.9% over the past four weeks [12] - In the last 60 days, five analysts have revised their earnings estimates upwards for fiscal 2025, with the Zacks Consensus Estimate rising by $0.29 to $12.11 per share [12] - TD SYNNEX has an average earnings surprise of +3% [12] Recommendation - With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, TD SYNNEX should be considered for investors' short lists [13]