TD SYNNEX
SNX
$252.42
-2.62%
TD SYNNEX Corporation is a leading global distributor and solutions aggregator for the IT ecosystem, providing hardware, software, and services across personal computing, data center, cloud, security, and networking. As one of the largest IT distributors worldwide, it operates through the Americas, Europe, and APJ segments, leveraging scale and vendor relationships to serve a vast channel of resellers and system integrators. The current investor narrative centers on the company's robust growth acceleration, driven by strong demand for AI infrastructure and hybrid cloud solutions, alongside margin expansion and operational efficiency gains. Recent quarterly results have exceeded expectations, fueling a significant re-rating of the stock as the market rewards its strategic positioning in high-growth technology segments.…
SNX
TD SYNNEX
$252.42
Investment Opinion: Should I buy SNX Today?
We rate TD SYNNEX as a Buy, given its strong growth acceleration, improving profitability, and attractive valuation. The analyst consensus is Buy with an average target of $333.55, implying 28.7% upside. The core thesis is that the company is leveraging its scale in AI infrastructure and hybrid cloud to drive above-market growth, while the stock remains undervalued relative to its growth rate.
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SNX 12-Month Price Forecast
The AI assessment is bullish, driven by the company's exceptional revenue growth and attractive valuation. The PEG ratio of 0.58 suggests the market is not fully pricing in the growth potential. However, the high beta and thin margins introduce uncertainty, warranting a medium confidence. If the company can sustain its growth trajectory and expand margins, the stock has significant upside. Conversely, any signs of deceleration would warrant a downgrade to neutral. Key factors to watch include quarterly revenue growth, margin trends, and analyst sentiment.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on TD SYNNEX's 12-month outlook, with a consensus price target around $333.55 and implied upside of +32.1% versus the current price.
Average Target
$333.55
0 analysts
Implied Upside
+32.1%
vs. current price
Analyst Count
—
covering this stock
Price Range
$278 - $374
Analyst target range
TD SYNNEX has coverage from 11 analysts, with a consensus recommendation of 'Buy' and a mean rating of 1.55 (where 1 is Strong Buy and 5 is Sell). The average price target is $333.55, implying a substantial upside of 28.7% from the current price of $259.21. The distribution of ratings is bullish, with no Sell ratings and only a few Hold/Equal Weight ratings, indicating strong conviction among analysts. The target price range spans from a low of $278.00 to a high of $374.00, with the low target still representing a 7.2% upside, while the high target suggests a 44.3% upside. The wide spread between the low and high targets (34.5% difference) reflects uncertainty about the sustainability of growth, but the overall positive skew indicates analysts expect continued outperformance. Recent ratings actions have been predominantly reaffirmations of Buy/Overweight ratings from major firms like UBS, Morgan Stanley, and Goldman Sachs, with no downgrades, signaling stable to improving sentiment.
Bulls vs Bears: SNX Investment Factors
TD SYNNEX presents a compelling bull case with accelerating revenue growth, improving profitability, and a valuation that appears undervalued relative to growth (PEG 0.58). The analyst consensus is strongly bullish with a 28.7% upside to the average target. However, the bear case highlights the stock's proximity to its 52-week high, high beta, and thin margins, which could lead to volatility. The most important tension is whether the company can sustain its 31% revenue growth and margin expansion, as any deceleration could trigger a de-rating. Currently, the bull case has stronger evidence given the robust fundamentals and analyst support, but investors should monitor growth sustainability closely.
Bullish
- Revenue growth accelerating to 31% YoY: Q2 2026 revenue surged 30.97% year-over-year to $19.57 billion, up from 15.4% growth in the prior quarter, driven by robust demand for AI infrastructure and hybrid cloud solutions. This acceleration demonstrates strong market positioning and momentum.
- Undervalued with PEG of 0.58: The PEG ratio of 0.58, based on a trailing PE of 15.05x and expected earnings growth of ~24%, indicates the stock is undervalued relative to its growth rate. This suggests the market has not fully priced in the company's earnings potential.
- Analyst consensus Buy with 28.7% upside: The average analyst price target is $333.55, implying a 28.7% upside from the current price of $259.21. With a mean rating of 1.55 (Strong Buy) and no Sell ratings, analyst sentiment is strongly bullish.
- Profitability improving with margin expansion: Net income rose to $334 million in Q2 2026 from $185 million a year ago, with gross margin expanding to 6.84% from 6.73%. Operating margin also improved to 2.65% from 2.62%, reflecting better cost management and scale benefits.
Bearish
- Trading near 52-week high with limited margin of safety: At $259.21, the stock is at 87.5% of its 52-week range (high $296.47), leaving limited upside if growth decelerates. The recent pullback from the high suggests potential volatility.
- Negative free cash flow in recent quarter: Free cash flow was negative in Q2 2026 due to working capital investments, though TTM FCF is $374.6 million. This could pressure liquidity if working capital needs persist.
- High beta of 1.436 increases market sensitivity: With a beta of 1.436, the stock is 43.6% more volatile than the market, amplifying downside risk during market corrections. This is a concern for risk-averse investors.
- Thin gross margins typical of distribution: Gross margin of 6.84% is low, reflecting the distribution business model. This leaves little room for error and makes profitability sensitive to cost pressures or pricing competition.
SNX Technical Analysis
TD SYNNEX has been in a powerful sustained uptrend over the past year, with the stock price surging 82.4% over the last 12 months, dramatically outperforming the S&P 500's 21.5% gain. The current price of $259.21 sits at 87.5% of its 52-week range (low of $142.13, high of $296.47), indicating the stock is trading near its highs, reflecting strong momentum and investor confidence. This positioning near the upper end of the range suggests the market is rewarding the company's growth trajectory, though it also raises the risk of short-term overextension.
Beta
1.44
1.44x market volatility
Max Drawdown
-18.8%
Largest decline past year
52-Week Range
$142-$296
Price range past year
Annual Return
+75.9%
Cumulative gain past year
| Period | SNX Return | S&P 500 |
|---|---|---|
| 1m | +2.9% | +2.4% |
| 3m | +5.6% | +4.6% |
| 6m | +47.3% | +11.7% |
| 1y | +75.9% | +21.4% |
| ytd | +64.5% | +13.4% |
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SNX Fundamental Analysis
TD SYNNEX has demonstrated exceptional revenue growth, with the most recent quarter (Q2 2026) reporting revenue of $19.57 billion, a 30.97% year-over-year increase, accelerating from the prior quarter's 15.4% growth. This acceleration is driven by robust demand across product and service segments, with product revenue at $6.12 billion and service revenue at $1.30 billion in the latest quarter. The company's profitability has improved significantly, with net income of $334 million in Q2 2026, up from $185 million in the year-ago quarter, and gross margin expanding to 6.84% from 6.73% in the prior year. Operating margin also improved to 2.65% from 2.62% in the year-ago quarter, reflecting better cost management and scale benefits. The balance sheet remains healthy with a debt-to-equity ratio of 0.55 and a current ratio of 1.21, though free cash flow was negative in the recent quarter due to working capital investments, but TTM FCF stands at $374.6 million, indicating the company can fund growth internally.
Quarterly Revenue
$19.6B
2026-05
Revenue YoY Growth
+31.0%
YoY Comparison
Gross Margin
6.8%
Latest Quarter
Free Cash Flow
$374559000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is SNX Overvalued?
Given TD SYNNEX's positive net income, the PE ratio is the primary valuation metric. The trailing PE is 15.05x, while the forward PE is 12.10x, implying the market expects earnings growth of approximately 24% over the next year. This forward discount suggests investors are pricing in continued robust earnings expansion, supported by the company's strong revenue growth and margin improvements. Compared to the technology distribution industry, TD SYNNEX trades at a significant discount, with a PE of 15.05x versus the industry average of 22x, representing a 32% discount. This discount is likely due to the company's lower gross margins typical of distribution businesses, but it may be unwarranted given its superior growth and profitability metrics. Historically, the stock's PE has ranged from 9.7x to 19.6x over the past two years, and the current 15.05x is near the midpoint, suggesting the market is pricing in moderate optimism. The PEG ratio of 0.58 indicates the stock is undervalued relative to its growth rate, reinforcing the view that the discount to the sector is not justified.
PE
15.0x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 10x~20x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
8.0x
Enterprise Value Multiple
Investment Risk Disclosure
Financial risks include a debt-to-equity ratio of 0.55, which is moderate but could strain if interest rates rise. The negative free cash flow in Q2 2026 due to working capital investments may pressure liquidity, though TTM FCF of $374.6 million provides a cushion. Revenue concentration in IT distribution exposes the company to cyclicality in tech spending, and thin gross margins (6.84%) leave little room for cost shocks. Earnings volatility is evident from the EPS range of $2.22 to $4.20 over the past year, reflecting sensitivity to demand swings.