Heading into today, shares of the distributor of electronic components had gained 2.4% over the past month, lagging the Computer and Technology sector’s gain of 5.84% and outpacing the S&P 500’s gain of 1.06% in that time.
AVT will be looking to display strength as it nears its next earnings release. In that report, analysts expect AVT to post earnings of $0.74 per share. This would mark year-over-year growth of 428.57%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.92 billion, up 18.18% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.33 per share and revenue of $19.22 billion. These totals would mark changes of +51.3% and +9.02%, respectively, from last year.
Any recent changes to analyst estimates for AVT should also be noted by investors. Recent revisions tend to reflect the latest 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. AVT currently has a Zacks Rank of #2 (Buy).
In terms of valuation, AVT is currently trading at a Forward P/E ratio of 18.68. This valuation marks a premium compared to its industry’s average Forward P/E of 15.64.
It is also worth noting that AVT currently has a PEG ratio of 0.82. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Electronics – Parts Distribution was holding an average PEG ratio of 0.82 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 9, which puts it in the top 4% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.