Back to top

Image: Bigstock

Avnet (AVT) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

Avnet (AVT - Free Report) closed the most recent trading day at $39.13, moving +0.51% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.34%.

Coming into today, shares of the distributor of electronic components had lost 11.4% in the past month. In that same time, the Computer and Technology sector gained 5.91%, while the S&P 500 gained 2.71%.

Wall Street will be looking for positivity from AVT as it approaches its next earnings report date. The company is expected to report EPS of $0.75, up 435.71% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.92 billion, up 18.22% from the year-ago period.

Investors might also notice recent changes to analyst estimates for AVT. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 1.98% higher. AVT currently has a Zacks Rank of #2 (Buy).

Digging into valuation, AVT currently has a Forward P/E ratio of 11.63. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 11.63.

We can also see that AVT currently has a PEG ratio of 0.51. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Electronics - Parts Distribution stocks are, on average, holding a PEG ratio of 0.51 based on yesterday's closing prices.

The Electronics - Parts Distribution industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 4, which puts it in the top 2% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Avnet, Inc. (AVT) - free report >>

Published in