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↓Deteriorating
- Cheap Valuation With Cash Conversion→Stable
- Earnings Beat Streak With Rising Estimates↑Improving
- +1 more pillar — see the Why tab for full reasoning
ScanSource, Inc. (SCSC) Stock Analysis
Breakout setup · Inst Constrain edge
Technology · Electronics & Computer Distribution
Sell if holding. Analyst target reached at $61.97 — 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: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.3).
ScanSource is a technology distributor selling hardware, software and services to resellers, advisors and managed service providers, mainly in North America and Brazil. It earns margins on products from suppliers such as Cisco and Zebra, which each exceeded 10% of fiscal 2025... Read more
Sell if holding. Analyst target reached at $61.97 — 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: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.3). Chart setup: Golden cross, above all MAs, RSI 65, MACD bullish. Score 5.8/10, moderate confidence.
Passes 4/8 gates (positive momentum, earnings proximity 22d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio and clean insider activity. Suitability: aggressive.
About ScanSource, Inc.
About ScanSource, Inc.
ScanSource distributes technology solutions — mobility and barcode, point-of-sale, payment terminals, physical security, networking, and cloud/connectivity services — from more than 500 suppliers to approximately 25,000 channel sales partners across the United States, Canada, and Brazil, generating $3.04 billion in net sales for the fiscal year ended June 30, 2025. Products from two suppliers, Cisco and Zebra, made up more than 10% of that net sales figure, while no single channel sales partner exceeded 10%.
ScanSource operates two segments: Specialty Technology Solutions, a wholesale/resale distribution model selling hardware and SaaS across the U.S., Canada, and Brazil, and Intelisys & Advisory, an agency-model technology services distributor that earns recurring commissions on connectivity, cloud, unified-communications, and managed-AI offerings sold through more than 200 telecom carriers and cloud providers. The company competes against broad-line distributors such as Ingram Micro and TD Synnex in its Specialty Technology Solutions segment. Because a significant percentage of net sales relates to products purchased from relatively few suppliers, including Cisco and Zebra, changes to supplier terms, rebates, or distribution rights could affect operating margins; ScanSource partly offsets this exposure through stock-rotation rights and price-protection provisions on slow-moving inventory. The company also depends on third-party shippers, including FedEx and UPS, for product delivery from its centralized U.S. warehouses and separate logistics providers in Brazil.
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Beyond named-supplier concentration, ScanSource's 10-K flags a second, geographic layer to its supply-chain risk: the products it sells are manufactured or purchased by its suppliers largely outside the United States, primarily in Asia, exposing the company to disruption from political, social, or economic instability in that region even though ScanSource itself sources products for U.S. customers domestically. Separately, the filing notes that suppliers are increasingly consolidating, which the company says leaves it with fewer alternative sources and could shift the terms suppliers are willing to offer — a structural narrowing of ScanSource's negotiating position that compounds, rather than duplicates, its two-supplier revenue concentration.
See also: Technology · Electronics & Computer Distribution
From ScanSource, Inc.'s most recent 10-K filing, extracted October 11, 2026.
Recent developments
updated 2026-10-14Recent Developments — ScanSource, Inc.
Latest news
- NEWS ScanSource Earnings: What To Look For From SCSC - StockStory — StockStory neutral
- NEWS ScanSource Earnings: What To Look For From SCSC - TradingView — TradingView neutral
- NEWS ScanSource (SCSC) Earnings Check: Profit Per Share Falls Below Its Benchmark for This Review; Closing Response - Vinanet — Vinanet negative
- NEWS Meeder Asset Management Inc. Acquires Shares of 93,287 ScanSource, Inc. $SCSC - MarketBeat — MarketBeat neutral
- NEWS ScanSource (SCSC) Stock Trades Down, Here Is Why - Yahoo Finance — Yahoo Finance negative
Generated 2026-10-14T11:37:18Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMSupplierCisco and Zebra suppliers10-K Item 1A: 'A significant percentage of our net sales relates to products we purchase from relatively few suppliers, including Cisco and Zebra.'
Material Events(8-K, last 90d)
- 2026-05-29Item 5.02MEDIUMSenior EVP and Chief Information Officer Rachel Hayden notified on May 22, 2026 that her role is eliminated effective June 8, 2026; entitled to severance under the Executive Severance Plan. No successor named.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
Technicals 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 $61.97 — 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: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.3). Chart setup: Golden cross, above all MAs, RSI 65, MACD bullish. Prior stop was $58.17. Score 5.8/10, moderate confidence.
Take-profit target: $71.27 (-11.5% upside). Prior stop was $58.17. Stop-loss: $58.17.
Analyst target reached - limited upside remaining; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.3); Sector modifier (Technology): -0.8.
ScanSource, Inc. trades at a P/E of 16.7 (forward 10.6). TrendMatrix value score: 8.4/10. Verdict: Sell.
8 analysts cover SCSC with a consensus score of 2.4/5. Average price target: $65.
What does ScanSource, Inc. do?ScanSource is a technology distributor selling hardware, software and services to resellers, advisors and managed...
ScanSource is a technology distributor selling hardware, software and services to resellers, advisors and managed service providers, mainly in North America and Brazil. It earns margins on products from suppliers such as Cisco and Zebra, which each exceeded 10% of fiscal 2025 net sales.