ScanSource Stock Hits 52-Week High: Is There More Room for Growth?

Zacks12-13

Shares of ScanSource SCSC hit a new 52-week high of $53.82 yesterday, before closing lower at $53.11. SCSC stock has gained 34.1% in the year-to-date period compared with the industry’s 12.7% growth ...

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SCSC stock has gained 34.1% in the year-to-date period compared with the industry’s 12.7% growth ...</p>\n\n<a href=\"https://finance.yahoo.com/news/scansource-stock-hits-52-week-175300850.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>ScanSource Stock Hits 52-Week High: Is There More Room for Growth?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nScanSource Stock Hits 52-Week High: Is There More Room for Growth?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-13 01:53 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/scansource-stock-hits-52-week-175300850.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Shares of ScanSource SCSC hit a new 52-week high of $53.82 yesterday, before closing lower at $53.11. SCSC stock has gained 34.1% in the year-to-date period compared with the industry’s 12.7% growth ...</p>\n\n<a href=\"https://finance.yahoo.com/news/scansource-stock-hits-52-week-175300850.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"FSS","symbol_name":"联邦信号","start_time":0,"source_url":"https://finance.yahoo.com/news/scansource-stock-hits-52-week-175300850.html","article_id":"2491359850","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/xPh8Pq893e8oyuKffyOsGA--~B/aD00MTg7dz02MjA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/32d8e94aebaf848ba2ae713940d56cb7"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2491359850","pubTimestamp":1734025980,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Shares of ScanSource SCSC hit a new 52-week high of $53.82 yesterday, before closing lower at $53.11. SCSC stock has gained 34.1% in the year-to-date period compared with the industry’s 12.7% growth and the S&P 500’s 28.6% rise. Meanwhile, the Industrial Products sector has gained 12.7%.ScanSource’s recent share price performance was bolstered by upbeat first-quarter fiscal 2025 results. Despite lower revenues due to cautious technology spending, SCSC delivered improved margins and earnings aided by its efforts to lower costs and debt levels.ScanSource also completed the acquisition of two high-margin, recurring revenue businesses, which also contributed to the stock’s gain.SCSC is currently trading above the 50-day and 200-day simple moving averages, signaling strong upward momentum and price stability.ScanSource Q1 Margins & EPS Improve Despite Lower Sales. As of Sept. 30, 2024, ScanSource had cash and cash equivalents of $145.0 million and total debt of $143.6 million. Its total deb","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"FSS":"联邦信号","SCSC":"ScanSource","IE00BLDYK493.USD":"NEUBERGER BERMAN US SMALL CAP \"A\" (USD) INC","RRX":"Regal Rexnord","IE00B64QTZ34.USD":"NEUBERGER BERMAN US SMALL CAP \"A\" (USD) ACC","LU2065731478.USD":"ALLSPRING (LUX) WORLDWIDE FUND - SMALL CAP INNOVA \"I\" (USD) ACC","GHC":"格雷厄姆控股","BK4140":"技术产品经销商","BK4161":"工业机械","BK4149":"建筑机械与重型卡车","RBC":"RBC轴承","GHM":"Graham Corp"},"translate_title":"ScanSource股价创52周新高：还有更多增长空间吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"FSS":1,"RBC":1,"SCSC":1,"GHC":0.9,"GHM":0.9,"RRX":0.9},"content_text":"Shares of ScanSource SCSC hit a new 52-week high of $53.82 yesterday, before closing lower at $53.11. SCSC stock has gained 34.1% in the year-to-date period compared with the industry’s 12.7% growth and the S&P 500’s 28.6% rise. Meanwhile, the Industrial Products sector has gained 12.7%.\nScanSource’s recent share price performance was bolstered by upbeat first-quarter fiscal 2025 results. Despite lower revenues due to cautious technology spending, SCSC delivered improved margins and earnings aided by its efforts to lower costs and debt levels.\nScanSource also completed the acquisition of two high-margin, recurring revenue businesses, which also contributed to the stock’s gain.\nSCSC Stock’s YTD Price Performance\nImage Source: Zacks Investment Research\nSCSC is currently trading above the 50-day and 200-day simple moving averages, signaling strong upward momentum and price stability.\nThis technical strength indicates positive market sentiment and confidence in ScanSource’s financial health and prospects.\nSCSC Stock Trading Above 50 and 200-Day Moving Averages\nImage Source: Zacks Investment Research\nLet us take a look into the factors that are driving SCSC stock.\nScanSource Q1 Margins & EPS Improve Despite Lower Sales\nScanSource reported its first-quarter fiscal 2025 results on Nov. 7, 2024.  The company reported adjusted earnings per share of 84 cents per share, which beat the Zacks Consensus Estimate of 77 cents. Earnings improved 14% year over year. The improvement in earnings was attributed to a favorable revenue mix, decreased interest expenses and a lower share count. \nThis was commendable considering that SCSC witnessed an 11.5% decline in net sales in the quarter to $776 million due to a weak demand environment. The figure also fell short of the Zacks Consensus Estimate of $799 million. However, net sales were up 4% sequentially, suggesting potential demand improvement.\nNet sales for products and services decreased 12.5% year over year while recurring revenues increased 18.8% . Specialty Technology Solutions' net sales decreased 11.9% year over year to $752.3 million due to ongoing weak demand amid a cautious technology spending environment. Intelisys & Advisory net sales increased 4.1% year over year to $23.3 million, primarily from an increase in Intelisys sales.\nThe gross margin was 13.10% in the first quarter of fiscal 2025 compared with 12.15% in the prior-year quarter. The expansion reflects a higher contribution of recurring revenues in the overall revenue mix. Adjusted EBITDA margin expanded 62 basis points year over year to 4.6%.\nAs of Sept. 30, 2024, ScanSource had cash and cash equivalents of $145.0 million and total debt of $143.6 million. Its total debt-to-total capital was 13.5% at the end of the first quarter of fiscal 2025, lower than 21.3% in the year-ago quarter.  ScanSource also had share repurchases of $28.1 million for the first quarter of fiscal 2025.\nScanSource’s Recent Acquisitions to Aid Growth\nIn the first quarter of fiscal 2025, ScanSource completed the acquisition of Resourcive, a leading technology advisor. Resourcive delivers strategic IT sourcing solutions to the mid-market and enterprise, advising clients on value creation strategies that are enabled by technology. With this acquisition, ScanSource is creating the advisory channel model of the future. \nScanSource also acquired Advantix, which enables mobility value-added resellers to sell hardware combined with the recurring revenue stream from data connectivity. With this acquisition, the company created the Integrated Solutions Group (“ISG”). It is focused on developing solutions and services that provide channel partners the opportunity to wrap additional value around their hardware offerings.\nSCSC Affirms FY25 Guidance\nScanSource affirmed its fiscal 2025 revenues to be in the range of $3.1-$3.5 billion. The midpoint of the guidance indicates year-over-year growth of 1%. Adjusted EBITDA is expected to be between $140 million and $160 million. The midpoint of the range implies 7% growth from fiscal 2024.\nRising Estimates Instill Confidence in SCSC Earnings\nThe Zacks Consensus Estimate for ScanSource’s fiscal 2025 and 2026 earnings has moved up over the past 60 days. This reflects better-than-expected first-quarter results, a favorable mix of recurring revenues and gains from cost-cutting actions.\nImage Source: Zacks Investment Research\nFind the latest earnings estimates and surprises on Zacks Earnings Calendar.\nThe Zacks Consensus Estimate for fiscal 2025 implies 14% year-over-year growth and the same for fiscal 2026 indicates 8.7% growth.\nSCSC Stock’s Attractive Valuation\nScanSource is currently trading at forward 12-month earnings multiple of 14.56X, a discount to the industry’s 28.19X. SCSC’s current Value Score of A further validates its appeal.\nImage Source: Zacks Investment Research\nWhat Should Be Your Approach for SCSC Stock?\nDespite the soft demand environment, the company’s shifting business mix and operational execution and cost-saving efforts are driving stronger earnings and cash flow. Efforts to lower debt while returning capital to shareholders and acquisitions are also commendable. Given its attractive valuation and upward trajectory in its earnings estimates, SCSC is a solid stock to add to one’s portfolio. SCSC currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.\nOther Key Picks in the Sector\nSome other top-ranked stocks from the Industrial Products sector are Graham Corporation GHM, Federal Signal Corporation FSS and RBC Bearings Incorporated RBC. GHM sports a Zacks Rank of 1 while FSS and RBC have a Zacks Rank #2 (Buy) at present. \nGraham has an average trailing four-quarter earnings surprise of 101.85%. The Zacks Consensus Estimate for GHM’s 2024 earnings is pinned at $1.03 per share, which indicates year-over-year growth of 145.2%. The company’s shares have gained 136.8% in the year-to-date period.\nFederal Signal has an average trailing four-quarter earnings surprise of 11.8%. The consensus estimate for FSS’ 2024 earnings is pinned at $3.34 per share, which indicates year-over-year growth of 29.5%. The company’s shares have gained 27% this year.\nThe Zacks Consensus Estimate for RBC Bearings’ fiscal 2025 earnings is pegged at $9.80 per share. The company has a trailing four-quarter average earnings surprise of 2.5%. RBC’s shares have gained 18% in the year-to-date period.\nWant 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\nRBC Bearings Incorporated (RBC) : Free Stock Analysis Report\nScanSource, Inc. (SCSC) : Free Stock Analysis Report\nFederal Signal Corporation (FSS) : Free Stock Analysis Report\nGraham Corporation (GHM) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2491359850"}