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Avnet (AVT) Dips More Than Broader Markets: What You Should Know

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Avnet (AVT - Free Report) closed at $38.56 in the latest trading session, marking a -0.87% move from the prior day. This change lagged the S&P 500's 0.13% loss on the day.

Prior to today's trading, shares of the distributor of electronic components had lost 7.2% over the past month. This has lagged the Computer and Technology sector's gain of 4.3% and the S&P 500's gain of 2.07% in that time.

Investors will be hoping for strength from AVT as it approaches its next earnings release. On that day, AVT is projected to report earnings of $1.08 per share, which would represent year-over-year growth of 200%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.23 billion, up 10.72% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.40 per share and revenue of $20.92 billion, which would represent changes of +62.36% and +7.08%, 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 26.53% higher. AVT currently has a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, AVT is holding a Forward P/E ratio of 8.84. Its industry sports an average Forward P/E of 8.84, so we one might conclude that AVT is trading at a no noticeable deviation comparatively.

Meanwhile, AVT's PEG ratio is currently 0.35. 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. The Electronics - Parts Distribution was holding an average PEG ratio of 0.35 at yesterday's closing price.

The Electronics - Parts Distribution industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 6, which puts it in the top 3% 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.

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


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