Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, Avnet (AVT - Free Report) closed at $45.55, marking a -0.2% move from the previous day. This move lagged the S&P 500's daily gain of 0.13%. Elsewhere, the Dow gained 0.28%, while the tech-heavy Nasdaq lost 0.06%.

Heading into today, shares of the distributor of electronic components had gained 6.94% over the past month, outpacing the Computer and Technology sector's loss of 13.84% and the S&P 500's gain of 5.55% in that time.

Avnet will be looking to display strength as it nears its next earnings release. In that report, analysts expect Avnet to post earnings of $1.96 per share. This would mark year-over-year growth of 75%. Our most recent consensus estimate is calling for quarterly revenue of $6.2 billion, up 18.68% from the year-ago period.

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. 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. 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 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 has moved 0.67% higher. Avnet is currently a Zacks Rank #3 (Hold).

Digging into valuation, Avnet currently has a Forward P/E ratio of 6.5. This valuation marks a discount compared to its industry's average Forward P/E of 7.07.

We can also see that AVT currently has a PEG ratio of 0.17. 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 0.76 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 4, putting 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Avnet, Inc. (AVT) - free report >>

Published in