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Avnet (AVT) closed the most recent trading day at $42.87, moving -1.74% from the previous trading session. This move was narrower than the S&P 500's daily loss of 2.01%. Meanwhile, the Dow lost 1.56%, and the Nasdaq, a tech-heavy index, lost 0.2%.
Prior to today's trading, shares of the distributor of electronic components had lost 9.63% over the past month. This has lagged the Computer and Technology sector's loss of 4.35% and the S&P 500's loss of 6.08% in that time.
Wall Street will be looking for positivity from Avnet as it approaches its next earnings report date. 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 $6.24 billion, up 19.45% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.83 per share and revenue of $24.18 billion, which would represent changes of +152.03% and +23.79%, respectively, from the prior year.
Any recent changes to analyst estimates for Avnet should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.04% higher. Avnet is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Avnet is currently trading at a Forward P/E ratio of 6.39. This represents a discount compared to its industry's average Forward P/E of 7.02.
Also, we should mention that AVT has a PEG ratio of 0.17. 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. The Electronics - Parts Distribution was holding an average PEG ratio of 0.77 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 4, putting 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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Avnet, Inc. (AVT) : Free Stock Analysis Report
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