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In the latest trading session, Avnet (AVT) closed at $40.69, marking a -1.52% move from the previous day. This change lagged the S&P 500's 0.14% loss on the day. Meanwhile, the Dow lost 0.45%, and the Nasdaq, a tech-heavy index, lost 0.02%.
Heading into today, shares of the distributor of electronic components had gained 6.08% over the past month, outpacing the Computer and Technology sector's loss of 5.82% and the S&P 500's loss of 0.13% in that time.
Investors will be hoping for strength from Avnet as it approaches its next earnings release. In that report, analysts expect Avnet to post earnings of $1.25 per share. This would mark year-over-year growth of 160.42%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.52 billion, up 18.33% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.87 per share and revenue of $22.16 billion. These totals would mark changes of +79.7% and +13.46%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Avnet. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Avnet is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Avnet currently has a Forward P/E ratio of 8.49. Its industry sports an average Forward P/E of 8.55, so we one might conclude that Avnet is trading at a discount comparatively.
Also, we should mention that AVT has a PEG ratio of 0.31. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Parts Distribution industry currently 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 40, which puts it in the top 16% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Avnet, Inc. (AVT) : Free Stock Analysis Report
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