SNX

TD SYNNEX (SNX) and ServiceNow (NOW) are compared as potential value stock investments in the IT Services sector. SNX emerges as the superior value option with a Zacks Rank of #1 (Strong Buy), forward P/E of 11.65, and Value grade of B, while NOW has a Zacks Rank of #5 (Strong Sell), forward P/E of 38.66, and Value grade of F.

TD SYNNEX's Hyve Solutions business experienced explosive growth with gross billings jumping 117% YoY to $7 billion in Q3'26, driven by strong demand for AI infrastructure. The company now serves all five top U.S. hyperscalers and secured a major enterprise AI factory deal.

TD SYNNEX reported overall quarterly revenues of $21.6 billion, up 37.7% YoY, with non-GAAP EPS climbing 58.7%. The stock trades at a forward P/E of 10.04, well below the industry average of 19.05, and holds a Zacks Rank #1 (Strong Buy) rating.

ATEN International recognized TD SYNNEX with its Annual Best Sales Performance Award, celebrating their exceptional sales results and strong partnership. The collaboration has driven significant business growth through ATEN's KVM and connectivity solutions combined with TD SYNNEX's distribution network, delivering value to channel partners and customers.

TD SYNNEX (SNX) has gained 1.3% over the past four weeks and closed at $263.76. Wall Street analysts have a mean price target of $336.08, suggesting a potential 27.4% upside.

The stock has a Zacks Rank #1 (Strong Buy) rating, supported by positive earnings estimate revisions with six upward revisions in the last 30 days and a 13% increase in consensus estimates. However, the article cautions that price targets alone should not be the sole basis for investment decisions.

TD SYNNEX reported that customers using its digital platforms increased spending at nearly twice the rate of comparable customers in Q3 FY2026. The company's PartnerFirst and Digital Bridge platforms, powered by AI agents, are helping simplify technology purchasing and deepen customer relationships. Q3 revenues surged 37.7% YoY to $21.6B with gross billings up 40% to $31.8B. SNX trades at a forward P/E of 11.31, below the industry average of 18.45, and holds a Zacks Rank #1 (Strong Buy) rating.

TD SYNNEX (SNX) has surged 78% year-to-date, significantly outperforming its IT Services industry peers. Strong Q3 fiscal 2026 results showed 37.7% revenue growth and 58.7% non-GAAP EPS growth, driven by robust AI infrastructure demand. With a forward P/E of 11.26X below the industry average of 17.98X, the stock is rated a Zacks Rank #1 Strong Buy, offering continued upside potential for investors seeking AI and technology exposure.

Zacks.com highlights three momentum stocks based on Richard Driehaus's investment strategy: NVIDIA Corp., TD SYNNEX Corp., and KE Holdings Inc. These stocks are identified as top momentum picks with strong upside potential, featuring positive earnings surprises and impressive earnings growth projections.

A comparison of two IT services sector stocks reveals TD SYNNEX (SNX) as the superior value investment. SNX holds a Zacks Rank #1 (Strong Buy) with a forward P/E of 13.58 and Value grade of B, while ServiceNow (NOW) has a Zacks Rank #3 (Hold) with a forward P/E of 33.97 and Value grade of F. SNX's lower valuation metrics and stronger earnings outlook make it more attractive to value investors.

Using Richard Driehaus's momentum-investing strategy, three stocks stand out as top picks for October: NVIDIA with a B Momentum Score and 93.9% expected growth, TD SYNNEX with an A Momentum Score and 55.4% expected growth, and KE Holdings with a B Momentum Score and 93.6% expected growth. The strategy focuses on stocks trading above their 50-day moving average with strong earnings growth and positive momentum indicators.

TD SYNNEX (SNX) has received a Zacks Rank #1 (Strong Buy) rating due to significant upward revisions in earnings estimates. The company's consensus estimates for the current quarter increased 27.47% over the past month, with expected earnings of $5.69 per share (+48.6% year-over-year).

Full-year estimates rose 10.47% to $20.50 per share (+55.4% year-over-year). The stock has gained 6% over the past four weeks as investors respond to improving earnings prospects.

Avnet (AVT) delivered robust fiscal Q4 2026 results with sales surging 47.7% to $8.3 billion and adjusted operating margin expanding to 3.8%. The company forecasts Q1 FY2027 sales of $9-$9.3 billion with adjusted EPS of $2.80-$2.90, representing 241% year-over-year earnings growth. AVT stock has outperformed its industry significantly while trading at a valuation discount.

Avnet (AVT) achieved record IP&E sales in fiscal Q4 2026 with full-year revenues approaching $5 billion and forecasts 10% sequential growth for Q1 fiscal 2027. Despite an 88.5% one-year stock surge, AVT trades below industry valuation multiples at 0.23X P/S versus 0.37X industry average, earning a Zacks Rank #1 Strong Buy rating. The company benefits from AI infrastructure demand, expanding margins, and strong performance across all end markets.