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

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In the latest trading session, Avnet (AVT) closed at $41.10, marking a -0.32% move from the previous day. This move lagged the S&P 500's daily gain of 0.64%. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq added 0.46%.

Heading into today, shares of the distributor of electronic components had gained 8.36% over the past month, outpacing the Computer and Technology sector's gain of 1.46% and the S&P 500's gain of 4.56% in that time.

Wall Street will be looking for positivity from Avnet as it approaches its next earnings report date. On that day, Avnet is projected to report earnings of $1.08 per share, which would represent year-over-year growth of 125%. Meanwhile, our latest consensus estimate is calling for revenue of $5.52 billion, up 18.33% from the prior-year quarter.

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.

Any recent changes to analyst estimates for Avnet should also be noted by investors. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Avnet currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Avnet has a Forward P/E ratio of 8.47 right now. This represents a discount compared to its industry's average Forward P/E of 9.19.

Also, we should mention that AVT has a PEG ratio of 0.31. 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. The Electronics - Parts Distribution was holding an average PEG ratio of 0.34 at yesterday's closing price.

The Electronics - Parts Distribution industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 1, putting it in the top 1% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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