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

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Avnet (AVT - Free Report) closed at $38.28 in the latest trading session, marking a +1.89% move from the prior day. This change outpaced the S&P 500's 0.28% loss on the day.

Coming into today, shares of the distributor of electronic components had lost 8.68% in the past month. In that same time, the Computer and Technology sector gained 0.55%, while the S&P 500 lost 0.56%.

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 $1.08, up 200% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue 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.

It is also important to note the recent changes to analyst estimates for AVT. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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 remained stagnant. AVT is holding a Zacks Rank of #1 (Strong Buy) right now.

Digging into valuation, AVT currently has a Forward P/E ratio of 8.54. Its industry sports an average Forward P/E of 8.54, so we one might conclude that AVT is trading at a no noticeable deviation comparatively.

It is also worth noting that AVT currently has a PEG ratio of 0.34. 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 0.34 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 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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