The Electronics Distributors industry has seen a noteworthy upturn of 7.96% in the previous month. This surge is particularly significant, considering the prevailing economic conditions and challenges that this industry faces.
Electronics distributors play a pivotal role in the supply chain, facilitating the distribution of electronic components, computer products/peripherals, and software products & services. The evolution of the industry has seen these distributors also become vital hubs for technical, pre-, and post-sale support.
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However, like all industries, there are threats and challenges to navigate. For the electronics distribution sector, tariffs and cross-border trade barriers are notable concerns. This dynamic environment can mean distributors have to constantly pivot, perhaps seeking markets where tariffs and restrictions are lower. Economic slowdowns are yet another vulnerability, directly impacting the demand for electronics.
Companies like Arrow Electronics, Inc., SYNNEX Corporation, and Versum Materials, Inc. stand out as key players in the U.S. electronics distributors landscape.
A Snapshot of Market Dynamics:
Market Cap: There seems to be a wide range in company valuations within this industry. The average market capitalization across this sector stands at 3.2B, with individual companies ranging from a low 116.2M (IZM) to a staggering 9.3B (SNX).
Price Movements: The past quarter saw an average price growth of 4.43%, which leaped to 8.59% in the past month, pushing the average monthly gain close to our noted 7.96%. A few outliers emerged in this scenario - IZM with an impressive 24.31% growth, and unfortunately, CLMB, which went the other direction, dropping by 4.53%.
Volume: A significant metric to consider, the average weekly volume growth declined by 11.86%, while the average monthly volume surged by 93.15%. This suggests a high level of trading activity and interest in the industry recently.
Key Notable Events:
ICZOOM Group (IZM) saw both highs and lows in recent times. On 7/1/23, the stock plummeted by 20.62%, only to rise dramatically by 23% on 5/27/23.
Insight Enterprises (NSIT) experienced a setback on 4/20/23, with its stock declining by 7.38%.
Volume Spikes: There were exceptional volume spikes for several companies. Notably, Arrow Electronics, Insight Enterprises, and ScanSource all had days where their trading volume dramatically exceeded their 65-Day Volume Moving Average by 349%, 287%, and 245% respectively.
The Electronics Distributors industry, in the face of challenges, has displayed remarkable resilience and adaptability. The surge of 7.96% in the last month suggests growing investor confidence and possibly a reflection of improved fundamentals or strategic maneuvers by companies within this sector.
SNX - On August 7, 2023, SNX witnessed a potential bullish momentum shift as its 50-day Moving Average surpassed its 200-day counterpart. This "golden cross" event often indicates a positive long-term trajectory for stocks. As such, SNX might be steering towards a sustained upward trend. Investors should monitor this development closely.
ARW - For the past 5 days, ARW's Stochastic Oscillator has consistently indicated an oversold condition. Historically, prolonged periods in the oversold territory often precede potential rebounds. Given this pattern, there's growing anticipation of an imminent uptrend for ARW. Investors should remain vigilant for any bullish price movements.
AVT - On August 3, 2023, AVT's price slid below its 50-day Moving Average, signaling a potential shift from a bullish to a bearish trend. Historical data reveals that in 33 out of 47 similar cases, the stock continued its descent in the ensuing month. Thus, there's a 70% likelihood that AVT may persist in its downward trajectory. Investors should approach with caution.
CLMB - On August 11, 2023, CLMB's RSI Oscillator emerged from the oversold region, hinting at a possible transition from a bearish to a bullish trend. Based on an analysis by A.I.dvisor, out of 18 analogous occurrences where the RSI left the oversold zone, the stock appreciated in 15 instances. This presents an 83% probability of an upward move. Traders might consider acquiring the stock or opting for call options.
SNX moved above its 50-day moving average on September 28, 2023 date and that indicates a change from a downward trend to an upward trend. In of 44 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SNX advanced for three days, in of 325 cases, the price rose further within the following month. The odds of a continued upward trend are .
SNX may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 316 cases where SNX Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The 10-day RSI Indicator for SNX moved out of overbought territory on September 05, 2023. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 38 similar instances where the indicator moved out of overbought territory. In of the 38 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 68 cases where SNX's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on September 29, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on SNX as a result. In of 83 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for SNX turned negative on September 26, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SNX declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 52, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. SNX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.094) is normal, around the industry mean (1.820). P/E Ratio (14.286) is within average values for comparable stocks, (13.541). Projected Growth (PEG Ratio) (1.062) is also within normal values, averaging (1.211). Dividend Yield (0.014) settles around the average of (0.544) among similar stocks. P/S Ratio (0.157) is also within normal values, averaging (0.538).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a developer of computer systems and complementary products
A.I.dvisor indicates that over the last year, SNX has been closely correlated with AVT. These tickers have moved in lockstep 67% of the time. This A.I.-generated data suggests there is a high statistical probability that if SNX jumps, then AVT could also see price increases.