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AVX (AVX) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

AVX (AVX) closed the most recent trading day at $18.08, moving +1.06% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.7%. Meanwhile, the Dow gained 0.58%, and the Nasdaq, a tech-heavy index, added 0.69%.

Coming into today, shares of the maker of electronic components had lost 1.05% in the past month. In that same time, the Computer and Technology sector gained 3.68%, while the S&P 500 gained 1.95%.

Investors will be hoping for strength from AVX as it approaches its next earnings release. On that day, AVX is projected to report earnings of $0.39 per share, which would represent year-over-year growth of 105.26%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $449 million, up 0.53% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.58 per share and revenue of $1.80 billion, which would represent changes of +97.5% and +15.32%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for AVX. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. AVX currently has a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, AVX is holding a Forward P/E ratio of 11.32. This represents a discount compared to its industry's average Forward P/E of 15.73.

The Electronics - Miscellaneous Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 164, which puts it in the bottom 36% 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.

To follow AVX in the coming trading sessions, be sure to utilize Zacks.com.

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