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

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In the latest trading session, Avnet (AVT - Free Report) closed at $39.64, marking a -0.43% move from the previous day. This move lagged the S&P 500's daily gain of 0.28%.

Heading into today, shares of the distributor of electronic components had lost 3.7% over the past month, lagging the Computer and Technology sector's gain of 5.05% and the S&P 500's gain of 3.07% in that time.

AVT will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.08, up 200% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.23 billion, up 10.72% from the year-ago period.

AVT's full-year Zacks Consensus Estimates are calling for earnings of $4.40 per share and revenue of $20.92 billion. These results would represent year-over-year changes of +62.36% and +7.08%, respectively.

Investors should also note any recent changes to analyst estimates for AVT. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 26.53% higher within the past month. AVT is currently a Zacks Rank #1 (Strong Buy).

Investors should also note AVT's current valuation metrics, including its Forward P/E ratio of 9.05. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 9.05.

We can also see that AVT currently has a PEG ratio of 0.36. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Electronics - Parts Distribution stocks are, on average, holding a PEG ratio of 0.36 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 5, which puts it in the top 2% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow AVT in the coming trading sessions, be sure to utilize Zacks.com.


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