ScanSource combines a cheap, cash-generative valuation and rising analyst estimates with a weak-growth headwind and a negative risk-adjusted asymmetry ratio, consistent with a call to consider reducing the position.
Thesis pillars
- Weak Growth Headwind→Stable
- Cheap Valuation With Cash Conversion→Stable
- Earnings Beat Streak With Rising Estimates→Stable
- +1 more pillar — see the Why tab for full reasoning
ScanSource, Inc. (SCSC) Stock Analysis
Inst Constrain edge
Technology · Electronics & Computer Distribution
Sell if holding. Analyst target reached at $51.63 — A.R:R is negative (-1.2) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Geographic: United States and Canada (92.1%).
ScanSource, Inc. engages in the distribution of technology products and solutions in the United States and internationally. It operates through two segments: Specialty Technology Solutions, and Intelisys & Advisory. The Specialty Technology Solutions segment offers mobility and... Read more
Sell if holding. Analyst target reached at $51.63 — A.R:R is negative (-1.2) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Geographic: United States and Canada (92.1%). Chart setup: No clear chart pattern; technical signals are mixed. Score 5.4/10, moderate confidence.
Passes 6/8 gates (positive momentum, clean insider activity, news events none recent, earnings proximity 44d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.
Recent developments
updated 2026-07-08Recent Developments — ScanSource, Inc.
Latest news
- NEWS ScanSource Expands Partnership With HPE Juniper Networking To Enhance Enterprise Connectivity, Security Solutions — benzinga Jun 30, 2026 positive
Generated 2026-07-08T22:53:48Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMSupplierCisco and Zebra10-K Item 1A: 'A significant percentage of our net sales relates to products we purchase from relatively few suppliers, including Cisco and Zebra.'
- HIGHGeographicUnited States and Canada92%10-K Item 1A: 'For fiscal year ending June 30, 2025, approximately 7.9% of our revenue was derived from our operations outside of the United States and Canada.'
Material Events(8-K, last 90d)
- 2026-05-29Item 5.02MEDIUMSEVP and Chief Information Officer Rachel Hayden was notified her role will be eliminated effective June 8, 2026; she is entitled to severance benefits under the company's Executive Severance Plan. Reason cited: role elimination.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
1 floor-breaker
Growth below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $51.63 — A.R:R is negative (-1.2) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Geographic: United States and Canada (92.1%). Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $49.09. Score 5.4/10, moderate confidence.
Take-profit target: $52.08 (+0.9% upside). Prior stop was $49.09. Stop-loss: $49.09.
Concentration risk — Geographic: United States and Canada (92.1%); Analyst target reached - limited upside remaining; Near 52-week high (2.8% away).
ScanSource, Inc. trades at a P/E of 15.6 (forward 11.6). TrendMatrix value score: 7.4/10. Verdict: Sell.
9 analysts cover SCSC with a consensus score of 4.0/5. Average price target: $55.
What does ScanSource, Inc. do?ScanSource, Inc. engages in the distribution of technology products and solutions in the United States and...
ScanSource, Inc. engages in the distribution of technology products and solutions in the United States and internationally. It operates through two segments: Specialty Technology Solutions, and Intelisys & Advisory. The Specialty Technology Solutions segment offers mobility and barcode, including mobile computing; barcode scanners and imagers, radio frequency identification devices, barcode printing and related services; point of sale systems and integrated pos software platforms; payment terminals, such as self-service kiosks, payment terminals and mobile payment devices; physical security comprising video surveillance and analytics, and video management software and access control; networking, such as switching, and routing and wireless products and software; communications, including voice, video, communication platform integration, and contact center solutions; managed connectivity and wireless enablement solutions. This segment offers applications that have evolved from traditional uses, such as inventory control, materials handling, distribution, shipping and warehouse management, and healthcare applications. The Intelisys & Advisory segment offers connectivity and software-defined networking, cx (unified communications as a service and contact center as a service), cloud/data center, and security, managed AI, and wireless and IOT. This segment helps channel sales partners service various end users, including businesses of all sizes from very small business to enterprise size businesses. It serves manufacturing, warehouse and distribution, retail and e-commerce, hospitality, transportation and logistics, government, education and healthcare, and other industries. ScanSource, Inc. was incorporated in 1992 and is headquartered in Greenville, South Carolina.