Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Electronics and IT distributor Avnet Inc. (AVT - Analyst Report) recently announced the expansion of its agreement with Cisco (CSCO - Analyst Report) to distribute its high-value specialty data center products in Latin America and the Caribbean. Since Cisco is the largest networking company in the world, with products ranging from switches and routers to security solutions and its unified computing system (UCS), the expansion further strengthens Avnet’s core business of distributing electronic components.

The agreement will help Avnet to provide its channel partners with better solutions for data centers. It will also enable Avnet to provide independent software vendor (ISV), system integrator (SI), and value-added reseller (VAR) partners with technical expertise, training and development and financial and logistics services, thus improving Avnet’s revenue stream and possibly its market share.

Avnet reported revenue of $6.59 billion, up 4.5% from $6.31 billion in the year-ago quarter. Revenues in the quarter were toward the higher end of management’s guidance range of $6.15 billion to $6.75 billion and above the Zacks Consensus Estimate of $6.46 billion.

Avnet Inc. (AVT or the company), based in Phoenix, AZ, is an industrial distributor of electronic components, enterprise computer and storage products and embedded subsystems. Avnet distributes electronic components and computer products as received from suppliers. It also provides engineering design, materials management and logistics services, system integration, and configuration and supply chain advisory services.

 Avnet’s leading position in electronics distribution, continuous cost cutting initiatives and acquisition synergies are encouraging. It does however see significant competition for both its domestic and foreign operations, especially from archrival Arrow Electronics Inc. (ARW - Analyst Report).

Currently, Avnet has a Zacks Rank #3 (Hold). Investors may also consider stocks from the same sector such as Quantum Corp. (QTM - Snapshot Report) with a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%