Latest news with #TD SYNNEX
Yahoo
23-06-2025
- Business
- Yahoo
TD SYNNEX (SNX) Reports Q2: Everything You Need To Know Ahead Of Earnings
IT distribution giant TD SYNNEX (NYSE:SNX) will be reporting results this Tuesday before market hours. Here's what to look for. TD SYNNEX missed analysts' revenue expectations by 1.7% last quarter, reporting revenues of $14.53 billion, up 4% year on year. It was a softer quarter for the company, with a significant miss of analysts' EPS estimates. Is TD SYNNEX a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting TD SYNNEX's revenue to grow 2.6% year on year to $14.32 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $2.75 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. TD SYNNEX has missed Wall Street's revenue estimates five times over the last two years. Looking at TD SYNNEX's peers in the tech hardware & electronics segment, only Jabil has reported results so far. It beat analysts' revenue estimates by 11.2%, delivering year-on-year sales growth of 15.7%. The stock traded up 13.1% on the results. Read our full analysis of Jabil's earnings results here. Investors in the tech hardware & electronics segment have had fairly steady hands going into earnings, with share prices down 1.4% on average over the last month. TD SYNNEX's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $135.99 (compared to the current share price of $125.18). Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Sign in to access your portfolio
Globe and Mail
19-06-2025
- Business
- Globe and Mail
Should You Buy, Sell or Hold NET Stock After a 68.5% YTD Surge?
Cloudflare NET has enjoyed a remarkable 68.5% surge in the year-to-date period, outperforming the Zacks Internet - Software industry's return of 12.9%. With such a stellar performance, investors are left wondering — should they double down on NET stock, or is caution the wiser path? Cloudflare YTD Performance Chart Strength in SASE and Zero Trust Aids Cloudflare's Growth Cloudflare's secure access service edge (SASE) platform is gaining rapid adoption among enterprises as it offers modernized and simplified network security and connectivity. NET recently secured its longest SASE deal in the first quarter of fiscal 2025. The company has also expanded its geographical reach in Latin America through collaboration with TD SYNNEX. Since Cloudflare provides an end-to-end cloud-based secured SASE solution that simplifies the adoption process for its clients, it is winning larger deals. Cloudflare combines its Zero Trust security products like Cloudflare Gateway, remote browser isolation and cloud access security broker with its Network Services like Magic WAN, Magic Transit and Magic Firewall, Cloudflare Network Interconnect. Cloudflare's presence is rapidly expanding in the Zero Trust cybersecurity space, where it has made integrations with companies like Atlassian, Microsoft and Sumo Logic, to enable small, medium and large-sized businesses to secure reliable tools and applications with enterprise-ready Zero Trust security. Based on this approach, NET has been witnessing tremendous customer growth in Zero Trust solutions and network services like Magic Transit in Cloudflare One. For instance, Cloudflare One Zero Trust platform is used by more than 10,000 companies worldwide. Rapid Adoption of Workers Developer Platform Drives Cloudflare Cloudflare Workers started as a serverless platform where developers could build, deploy, and scale applications across Cloudflare's global network. The platform was developed for convenience as it enables developers to take actions using a single command and reduces infrastructure management and configuration complexities and brings applications closer to users. The Workers AI tool integrated in the Workers developer platform has witnessed an explosive 4,000% year-over-year surge in inference requests as reported in first-quarter earnings. Cloudflare is now focusing on enriching its Workers platform with the Model Context Protocol server, which will enable clients to deploy AI agents to simplify tasks like managing workflows, handling transactions, or querying business data. These value additions to its platform will lead to upsells and customer acquisition, hence boosting this platform's growth. In its latest quarterly results, NET announced that its total customer base has reached the milestone of 250,819 paying customers, up 27% year over year. Due to all these positive factors, analysts are optimistic about the stock's future growth. The Zacks Consensus Estimate for fiscal 2025 and 2026 revenues is projected to grow 25.38% and 26%, respectively. The Zacks Consensus Estimate for 2025 and 2026 earnings is projected to grow 5.3% and 31.6%, respectively. Cloudflare beat the Zacks Consensus Estimates in three of the trailing four quarters while matching the same on one occasion, with an average surprise of 14.88%. Key Challenges Faced by Cloudflare A substantial portion of the company's sales is derived from outside the United States. During the full years 2024, 2023, 2022, 2021 and 2020, NET earned approximately 49%, 48%, 47%, 48% and 49%, respectively, of its revenues from outside the United States. However, the U.S. government's aggressive stance on tariffs toward major economies is a concern for Cloudflare. Moreover, NET operates in a highly competitive environment. In its content delivery space, companies like Amazon AMZN, Akamai Technology and Fastly compete with Cloudflare. While in the cyber security space, a range of competitors like Palo Alto Networks PANW and Zscaler ZS compete with it. Amazon also competes with its developer platform through its general-purpose serverless and container-based edge deployment solutions. Alphabet is implementing AI in its Cloud Run solution, Amazon's AWS Lambda & Lambda@Edge leverage deep integrations with AWS services, robust tooling, and a mature developer base. Additionally, AWS Fargate is the AWS service that also enables serverless compute for containers. These solutions threaten the dominance of Cloudflare's developer platform. Palo Alto Networks' SASE platform has an active customer user base of more than 6,000. Palo Alto Networks achieved 36% year-over-year growth in SASE ARR and 16% growth in $1 million-plus deals in the third quarter of fiscal 2025, making it a dominant SASE player. Zscaler, on the other hand, leads the Zero Trust space and also offers SASE solutions. The company offers Zero Trust Network Access solutions through Zscaler Private Access, which enables secure application access without VPN. ZS is now moving toward the Zero Trust Everywhere model, which secures cloud, endpoint and network. Zscaler also provides a full SASE platform by combining identity access, private access and cloud protection. NET's Valuation Suggests the Stock's Overvaluation Cloudflare is trading at a 12-month forward P/S ratio of 25.43X, significantly above the industry average of 6.97X. Cloudflare Forward 12 Month P/S Valuation Chart What Should Investors Do? While Cloudflare's recent stock surge and strong market position are encouraging, its high valuation warrants caution. Therefore, we believe new investors should wait for a better entry point and existing investors should retain Cloudflare, which currently carries a Zacks Rank #3 (Hold), given the modest growth prospects and a stretched valuation in the near term. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN): Free Stock Analysis Report Palo Alto Networks, Inc. (PANW): Free Stock Analysis Report Zscaler, Inc. (ZS): Free Stock Analysis Report Cloudflare, Inc. (NET): Free Stock Analysis Report
