Yahoo Finance Avnet (AVT) Outpaces Stock Market Gains: What You Should Know
Avnet (AVT) closed the most recent trading day at $42.18, moving +0.33% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.08%. At the same time, the Dow lost 0.56%, and the tech-heavy Nasdaq lost 4.81%.
Heading into today, shares of the distributor of electronic components had gained 9.84% over the past month, outpacing the Computer and Technology sector's loss of 2.99% and the S&P 500's gain of 0.64% in that time.
Avnet will be looking to display strength as it nears its next earnings release, which is expected to be January 26, 2022. The company is expected to report EPS of $1.25, up 160.42% from the prior-year quarter. 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. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Avnet is currently a Zacks Rank #3 (Hold).
Investors should also note Avnet's current valuation metrics, including its Forward P/E ratio of 8.67. Its industry sports an average Forward P/E of 8.68, so we one might conclude that Avnet is trading at a discount comparatively.
Investors should also note that AVT has a PEG ratio of 0.31 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. Electronics - Parts Distribution stocks are, on average, holding a PEG ratio of 0.32 based on yesterday's closing prices.
The Electronics - Parts Distribution industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 43, putting it in the top 17% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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