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

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Avnet (AVT - Free Report) closed the most recent trading day at $38.82, moving -0.23% from the previous trading session. This change lagged the S&P 500's daily gain of 1.64%. Elsewhere, the Dow gained 1.08%, while the tech-heavy Nasdaq added 0.45%.

Heading into today, shares of the distributor of electronic components had lost 2.24% over the past month, outpacing the Computer and Technology sector's loss of 3.69% and lagging the S&P 500's loss of 0.83% in that time.

Avnet will be looking to display strength as it nears its next earnings release. 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.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.87 per share and revenue of $22.16 billion, which would represent changes of +79.7% and +13.46%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Avnet. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering 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).

In terms of valuation, Avnet is currently trading at a Forward P/E ratio of 8. For comparison, its industry has an average Forward P/E of 8.51, which means Avnet is trading at a discount to the group.

We can also see that AVT currently has a PEG ratio of 0.29. 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. 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 group has a Zacks Industry Rank of 5, putting it in the top 2% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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