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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 $36.48 in the latest trading session, marking a -1.03% move from the prior day. This move lagged the S&P 500's daily loss of 0.24%.

Heading into today, shares of the distributor of electronic components had lost 4.19% over the past month, outpacing the Computer and Technology sector's loss of 5.49% and lagging the S&P 500's loss of 2.12% in that time.

Investors will be hoping for strength from AVT as it approaches its next earnings release. In that report, analysts expect AVT to post earnings of $1.08 per share. This would mark year-over-year growth of 200%. Meanwhile, our latest consensus estimate is calling for revenue of $5.23 billion, up 10.72% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.37 per share and revenue of $20.85 billion. These totals would mark changes of +61.25% and +6.75%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for AVT. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.63% lower. AVT is currently sporting a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that AVT has a Forward P/E ratio of 8.43 right now. This represents a discount compared to its industry's average Forward P/E of 8.67.

Investors should also note that AVT has a PEG ratio of 0.33 right now. 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 0.34 at yesterday's closing price.

The Electronics - Parts Distribution industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 111, putting it in the top 44% 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.


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