Avnet (AVT) Gains As Market Dips: What You Should Know
Avnet (AVT) closed at $48.15 in the latest trading session, marking a +0.58% move from the prior day. This change outpaced the S&P 500's 0.28% loss on the day. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq lost 0.14%.
Heading into today, shares of the distributor of electronic components had gained 13.25% over the past month, outpacing the Computer and Technology sector's gain of 8.21% and the S&P 500's gain of 8.35% in that time.
Wall Street will be looking for positivity from Avnet as it approaches its next earnings report date. This is expected to be August 10, 2022. The company is expected to report EPS of $1.96, up 75% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.2 billion, up 18.68% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for Avnet. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 has moved 0.67% higher within the past month. Avnet is currently a Zacks Rank #3 (Hold).
In terms of valuation, Avnet is currently trading at a Forward P/E ratio of 6.81. Its industry sports an average Forward P/E of 7.73, so we one might conclude that Avnet is trading at a discount comparatively.
Also, we should mention that AVT has a PEG ratio of 0.18. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Electronics - Parts Distribution stocks are, on average, holding a PEG ratio of 0.86 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 15, putting it in the top 6% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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