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

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In the latest trading session, Avnet (AVT - Free Report) closed at $38.05, marking a +1.41% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.85%. Elsewhere, the Dow lost 0.17%, while the tech-heavy Nasdaq lost 0.05%.

Prior to today's trading, shares of the distributor of electronic components had lost 4.04% over the past month. This has lagged the Computer and Technology sector's loss of 0.5% and the S&P 500's loss of 0.97% in that time.

Wall Street will be looking for positivity from Avnet as it approaches its next earnings report date. The company is expected to report EPS of $1.25, up 160.42% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.52 billion, up 18.33% from the year-ago period.

AVT's full-year Zacks Consensus Estimates are calling for earnings of $4.87 per share and revenue of $22.16 billion. These results would represent year-over-year changes of +79.7% and +13.46%, respectively.

Investors might also notice recent changes to analyst estimates for Avnet. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant. Avnet is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Avnet is holding a Forward P/E ratio of 7.71. This represents a discount compared to its industry's average Forward P/E of 8.41.

Investors should also note that AVT has a PEG ratio of 0.28 right now. 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. AVT's industry had an average PEG ratio of 0.31 as of yesterday's close.

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.

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