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Avnet (AVT) Gains But Lags Market: What You Should Know

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In the latest trading session, Avnet (AVT - Free Report) closed at $43.12, marking a +0.33% move from the previous day. This move lagged the S&P 500's daily gain of 0.42%.

Heading into today, shares of the distributor of electronic components had gained 11.6% over the past month, outpacing the Computer and Technology sector's gain of 5.45% and the S&P 500's gain of 6.32% in that time.

Wall Street will be looking for positivity from AVT as it approaches its next earnings report date. In that report, analysts expect AVT to post earnings of $0.55 per share. This would mark year-over-year growth of 44.74%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.5 billion, up 4.36% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2 per share and revenue of $18.49 billion, which would represent changes of +29.87% and +4.83%, respectively, from the prior year.

Any recent changes to analyst estimates for AVT should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.25% higher. AVT currently has a Zacks Rank of #2 (Buy).

Digging into valuation, AVT currently has a Forward P/E ratio of 21.72. This represents a premium compared to its industry's average Forward P/E of 14.73.

Investors should also note that AVT has a PEG ratio of 1.12 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Electronics - Parts Distribution stocks are, on average, holding a PEG ratio of 1.12 based on yesterday's closing prices.

The Electronics - Parts Distribution industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 56, putting it in the top 23% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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