Avnet (AVT) Gains But Lags Market: What You Should Know
In the latest trading session, Avnet (AVT) closed at $43.06, marking a +0.05% move from the previous day. This move lagged the S&P 500's daily gain of 1.13%. Elsewhere, the Dow gained 0.74%, while the tech-heavy Nasdaq added 0.87%.
Prior to today's trading, shares of the distributor of electronic components had gained 4.26% over the past month. This has outpaced the Computer and Technology sector's gain of 1.42% and the S&P 500's gain of 2.65% in that time.
Investors will be hoping for strength from Avnet as it approaches its next earnings release. On that day, Avnet is projected to report earnings of $1.51 per share, which would represent year-over-year growth of 104.05%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.62 billion, up 14.23% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.67 per share and revenue of $22.7 billion. These totals would mark changes of +109.23% and +16.2%, respectively, from last 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. 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. 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Avnet is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, Avnet is currently trading at a Forward P/E ratio of 7.59. This represents a no noticeable deviation compared to its industry's average Forward P/E of 7.59.
Meanwhile, AVT's PEG ratio is currently 0.26. 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 was holding an average PEG ratio of 1.14 at yesterday's closing price.
The Electronics - Parts Distribution industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 4, which puts 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.
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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