What Makes TD Synnex (SNX) an Attractive Stock?

Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund returned 7.46% compared to a 12.60% return for the Russell 2000 Value Index. In the first three quarters of 2025, the Fund returned 13.77%, compared to 9.04% for the index. As the firm’s focus is on a diligent, disciplined, and patient process, it expects the fund to outperform in down markets and trail in speculative markets. Additionally, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, the FPA Queens Road Small Cap Value Fund highlighted stocks such as TD SYNNEX Corporation (NYSE:SNX). TD SYNNEX Corporation (NYSE:SNX) is a leading distributor and solutions aggregator for the information technology (IT) ecosystem. The one-month return of TD SYNNEX Corporation (NYSE:SNX) was -5.70%, and its shares gained 20.89% of their value over the last 52 weeks. On November 21, 2025, TD SYNNEX Corporation (NYSE:SNX) stock closed at $146.24 per share, with a market capitalization of $12.06 billion.

FPA Queens Road Small Cap Value Fund stated the following regarding TD SYNNEX Corporation (NYSE:SNX) in its third quarter 2025 investor letter:

"TD SYNNEX Corporation (NYSE:SNX) is the largest information technology (IT) distributor globally. 20 years ago, IT distribution involved getting personal computers (PCs), servers , and routers from the manufacturer to the customer. But TD Synnex adds value by acting as an outsourced sales force for its suppliers and providing IT consulting to its customers. The business has evolved, and the company sells increasing amounts of software, security solutions, cloud licenses, and other growth-y IT at attractive margins. Shares have performed well this year as billings growth has rebounded to a double digit rate, led by TD Synnex’s more complex and higher margin Advanced Solutions portfolio. We believe that SNX shares are still attractive at the current valuation of roughly 12x this year’s earnings."

TD SYNNEX Corporation (NYSE:SNX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 36 hedge fund portfolios held TD SYNNEX Corporation (NYSE:SNX) at the end of the second quarter, up from 35 in the previous quarter.  In Q3 2025, TD SYNNEX Corporation (NYSE:SNX) reported revenue of $15.7 billion, up 7% year over year. While we acknowledge the potential of TD SYNNEX Corporation (NYSE:SNX) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered TD SYNNEX Corporation (NYSE:SNX) and shared the list of best and cheap stocks to buy for beginners. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.