Based in Clearwater, Florida, and Fremont, California, TD SYNNEX (SNX) — formed from the merger of Tech Data and SYNNEX Corp. — is a leading global distributor of information technology systems, notes Mark Skousen, growth stock expert and editor of Home Run Trader.
It helps that the company has more than 150,000 customers in 100-plus countries to maximize the value of technology investments to increase efficiencies and fuel growth.
Its products and services are focused on many of the highest-growth technology segments, including cloud, cybersecurity, data analytics, internet of things, mobility and “everything as a service.”
In today’s increasingly wired world, technology moves fast. Companies partner with TD SYNNEX to manage transformation, inspire innovation, find creative solutions, cut costs and bolster sales and profits.
Whether a company can actually execute on such ambitious goals can only be confirmed by looking at the numbers. And they are excellent. Annual revenue tops $61.7 billion. Earnings are up 57% year over year on a 195% increase in revenue. And I expect net income per share to rise from $11.45 this year to more than $13 in 2023.
Despite these strong numbers, the stock is unbelievably cheap. It sells for 16 times earnings, 13% of sales and only one times book value. Of course, cheap doesn’t always mean undervalued. But in this case, we have excellent confirmation that the stock is both.
Director and investor Matthew Miau — who is also the current Chairman of Lien Hwa Industrial Holdings — purchased 4,997,878 shares of TD SYNNEX this month at $87.32 per share.
That’s an investment of $439 million, as well as a strong vote of confidence by a man who has access to all sorts of material, non-public information about the prospects of the business. So, follow his lead and pick up TD SYNNEX at market. Place a sell stop at $70 for protection.
