Avnet (AVT) Dips More Than Broader Markets: What You Should Know

Avnet (AVT) closed at $38.10 in the latest trading session, marking a -0.96% move from the prior day. This move lagged the S&P 500's daily loss of 0.58%.

Heading into today, shares of the distributor of electronic components had lost 5.2% over the past month, lagging the Computer and Technology sector's gain of 2.08% and the S&P 500's gain of 0.16% in that time.

Wall Street will be looking for positivity from AVT as it approaches its next earnings report date. In that report, analysts expect AVT to post earnings of $1.08 per share. This would mark year-over-year growth of 200%. Our most recent consensus estimate is calling for quarterly revenue of $5.23 billion, up 10.72% from the year-ago period.

AVT's full-year Zacks Consensus Estimates are calling for earnings of $4.40 per share and revenue of $20.92 billion. These results would represent year-over-year changes of +62.36% and +7.08%, respectively.

Investors should also note any recent changes to analyst estimates for AVT. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. Within the past 30 days, our consensus EPS projection remained stagnant. AVT is currently a Zacks Rank #1 (Strong Buy).

Valuation is also important, so investors should note that AVT has a Forward P/E ratio of 8.74 right now. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 8.74.

Meanwhile, AVT's PEG ratio is currently 0.34. 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. AVT's industry had an average PEG ratio of 0.34 as of yesterday's close.

The Electronics - Parts Distribution industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 7, putting it in the top 3% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Avnet, Inc. (AVT) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.