SCSC Overview

Growth Stocks Overview: Growth stocks are appealing due to their potential for above-average financial growth, but they come with higher volatility and risk, making it challenging to identify the best options.

ScanSource Recommendation: ScanSource (SCSC) is highlighted as a strong growth stock, boasting a favorable Growth Score and a Zacks Rank of #2, indicating its potential for outperforming the market.

Key Growth Metrics: The company shows promising earnings growth, with a projected EPS increase of 15.5% this year, and an asset utilization ratio of 1.73, significantly higher than the industry average, indicating efficient sales generation.

Positive Earnings Trends: Recent upward revisions in earnings estimates for ScanSource further support its growth potential, making it a solid choice for growth investors looking for outperformers.

Bargain Stocks Highlighted: The article discusses five stocks with attractive EV-to-EBITDA ratios, including El Pollo Loco Holdings, OppFi Inc., Edison International, ScanSource, Inc., and Zions Bancorporation, which are considered undervalued based on this metric.

EV-to-EBITDA vs. P/E Ratio: EV-to-EBITDA is presented as a superior valuation metric compared to the traditional price-to-earnings (P/E) ratio, as it accounts for a company's total value and is less susceptible to manipulation, making it useful for evaluating firms with negative net earnings.

Growth Projections: Each highlighted stock has promising earnings growth projections for 2025, with OppFi Inc. expected to grow by 65.3%, followed by Edison International at 23.7%, and Zions Bancorporation at 19%.

Investment Tools and Resources: The article promotes Zacks Investment Research's tools, such as the Research Wizard, which helps investors screen stocks and develop investment strategies, emphasizing the importance of combining multiple valuation metrics for better decision-making.

Top Rated IT Stocks: ScanSource Inc. (SCSC) and Vishay Intertechnology Inc. (VSH) are highlighted as top-rated small-cap value stocks in the IT sector, both receiving a rating of 71% based on Benjamin Graham's value investing strategy, which emphasizes low P/B and P/E ratios, low debt, and solid long-term earnings growth.

ScanSource Inc. Overview: ScanSource operates as a hybrid distributor in the Computer Hardware industry, providing solutions across various segments including mobility, security, networking, and cloud services, aimed at accelerating growth for channel partners.

Vishay Intertechnology Inc. Overview: Vishay specializes in manufacturing discrete semiconductors and passive electronic components for diverse markets such as automotive, industrial, and medical, offering a wide range of products including MOSFETs and diodes.

About Benjamin Graham and Validea: Benjamin Graham, known as the "Father of Value Investing," significantly influenced the investment world and mentored notable investors like Warren Buffett. Validea is an investment research service that analyzes stocks based on the strategies of legendary investors, including Graham.

Conference Call Announcement: ScanSource Inc. (SCSC) will hold a conference call on November 6, 2025, at 10:30 AM ET to discuss its Q1 26 earnings results.

Webcast Access: Interested parties can access the live webcast of the conference call by visiting ScanSource's investor relations page at https://www.scansource.com/about/investors.

Author's Views Disclaimer: The opinions expressed in the announcement are those of the author and do not necessarily reflect the views of Nasdaq, Inc.

Earnings Discussion Focus: The conference call will specifically focus on the financial performance of ScanSource for the first quarter of the fiscal year 2026.

ETF Analysis: The iShares S&P Small-Cap 600 Value ETF (IJS) has an implied analyst target price of $124.35, indicating a potential upside of 13.20% from its current trading price of $109.85.

Notable Holdings: Key underlying holdings with significant upside potential include ScanSource, Inc. (27.77% upside), Rogers Corp. (21.84% upside), and Customers Bancorp Inc (21.02% upside) based on their respective analyst target prices.