StockStory backs TD SYNNEX while warning on Kyndryl and RUM
The publisher cites TD SYNNEX's growth and scale, while pointing to declining revenue at Kyndryl and cash risks at RUM.
Key takeaways
- StockStory highlighted TD SYNNEX’s revenue growth, scale and share repurchases.
- Kyndryl’s revenue declined by 5% annually over the past five years, according to StockStory.
- StockStory cited RUM Group’s cash-burning history and limited cash reserves.
StockStory named TD SYNNEX its favored business-services stock, while flagging risks at Kyndryl and RUM Group. The publisher said the business-services industry gained 23.2% over the past six months, beating the S&P 500 by 8.8 percentage points.
The case for TD SYNNEX rests on growth and scale, StockStory said. It cited 15.2% annual revenue growth over the past two years and revenue of $75.67 billion.
StockStory also pointed to share repurchases and annual earnings-per-share growth of 27.7% over the past two years. The publisher said the stock’s price of $265.50 implied a forward price-to-earnings ratio of 11.5.
For Kyndryl, StockStory cited revenue declines of 5% annually over the past five years and projected a further 1% sales decline over the next 12 months. It also said the company had negative returns on capital.
StockStory raised concerns about RUM Group’s historically negative earnings per share, cash-burning history and limited reserves. It said those reserves could leave the company seeking financing on terms that dilute shareholders.
This article was produced with the help of AI technology. Source: Yahoo Finance
