The entity's average rating is Buy from 6 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Synnex market sentiment investors' perception of the future value of Synnex. Let us look at a few aspects of Synnex technical analysis.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of Synnex. In general, sophisticated investors focus on analyzing Synnex stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Synnex's daily price indicators and compare them against related drivers such as
momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional
technical analysis and
fundamental analysis, we attempt to find the most accurate representation of
Synnex's intrinsic value. In addition to deriving basic predictive indicators for Synnex, many experienced traders also check how macroeconomic factors affect Synnex price patterns. Please read more on our
technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Synnex's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Synnex. Your research has to be compared to or analyzed against Synnex's peers to derive any actionable benefits. When done correctly, Synnex's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Synnex.
How important is Synnex's Liquidity
Synnex
financial leverage refers to using borrowed capital as a funding source to finance Synnex ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Synnex financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Synnex's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Synnex's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Synnex's total debt and its cash.
Synnex Gross Profit
Synnex Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Synnex previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Synnex Gross Profit growth over the last 10 years. Please check Synnex's
gross profit and other
fundamental indicators for more details.
Closer look at Synnex Variance
Synnex has current Variance of 8.68. Variance is another measure of security risk that shows the amount of dispersion of equity returns around their mean value. Variance is calculated as the average squared deviations from the mean. Evaluating a set of investment alternatives one can use variance to help determine the volatility when purchasing a specific security. Similar to Standard Deviation, the variance is a measure of how far a set of numbers is spread out around its mean.
Variance is also a measure of stock volatility and can help determine the risk an investor might take on when purchasing a specific security. A relatively big variance indicates that the daily prices or returns are far from the mean and a small variance indicates that they are located around the mean.
Variance | = | SUM(RET DEV)2 N |
| = | 8.68 |
| SUM | = | Summation notation |
| RET DEV | = | Actual returns deviation over selected period |
| N | = | Number of points for the period |
Analysis of Synnex
Synnex current potential upside rises over 4.21. As of the 11th of January 2021, Synnex has the Coefficient Of Variation of 494.6,
semi deviation of 1.55, and Risk Adjusted Performance of 0.214. In relation to
fundamental indicators, the
technical analysis model makes it possible for you to check existing technical drivers of Synnex, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to analyze and collect data for nineteen
technical drivers for Synnex, which can be compared to its competition. Please validate
Synnex variance and
potential upside to decide if Synnex is priced more or less accurately, providing market reflects its prevalent price of 86.9 per share. Given that Synnex has
jensen alpha of 0.4119, we advise you to double-check Synnex's current market performance to make sure the company can sustain itself at a future point.
The Bottom Line
While other companies within the information technology services industry are still a little expensive, even after the recent corrections, Synnex may offer a potential longer-term growth to investors. While some investors may not share our view, we believe it may be a good time to increase your existing holdings in Synnex as the risk-reward trade off is appealing enough to hold a position. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Synnex.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Synnex. Please refer to our
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