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Avnet (AVT) Scales 52-Week High on Impressive Q4 Results

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Share price of Avnet, Inc. (AVT - Free Report) rallied to a new 52-week high of $47.68, eventually closing a tad lower at $47.58 on Aug 17.

Notably, shares of Avnet have been witnessing an upside, appreciating 20.1% year to date compared with the industry’s rally of 1.5%.



Avnet recently reported its fourth-quarter fiscal 2018 results, wherein both the top line and bottom line surpassed the Zacks Consensus Estimate and recorded year-over-year improvement.  We note that the company has beaten the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average positive surprise of 5.92%.

The Zacks Consensus Estimate for fiscal 2019 has increased by 2.9% to $4.20 over the last 30 days, as five analysts revised the estimate upwards. Also, for the current quarter, estimates have been upgraded from 97 cents to a penny over the same time frame.

Avnet currently has a Zacks Rank #2 (Buy). The company has a market cap of $5.508 billion and a long-term expected earnings growth rate of 9.45%.

What’s Backing the Rally?

Avnet is riding high on strong demand witnessed by its Electronic Components segment, which was a result of its dedicated efforts to boost the business. The company had a difficult fiscal 2017, having lost key vendors, which affected the top line. The focused strategies and efforts led to an impressive recovery of revenues in fiscal 2018, making us optimistic about its prospects.

Avnet, Inc. Revenue (TTM)

 

Avnet, Inc. Revenue (TTM) | Avnet, Inc. Quote

The most important development for Avnet in the last fiscal was the win-back of Microsemi as a vendor for its global line card, strengthening its portfolio further.

Strategic acquisitions and partnerships pursued by the company won it additional customers in its end-to-end IoT solutions pipeline, which will boost its revenues going forward.

Its acquisition of Premier Farnell in 2016 continues to enhance the company’s profitability and is expected to further strengthen Avnet’s Electronics Marketing division’s offerings, thereby driving its top-line results.

Other Stocks to Consider

Few other top-ranked stocks in the broader Computer and Technology sector are Virtusa Corporation , Qualys, Inc. (QLYS - Free Report) and Fortinet, Inc. (FTNT - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth for Virtusa, Qualys and Fortinet is projected to be 20%, 8% and 16.8%, respectively.

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