Key Takeaways SMCI and AVT project strong current-year revenue and earnings growth, supported by improving estimates. ADM and ALL are advancing strategic initiatives while trading below the S&P 500 on forward P/E.CNC benefits from pricing and optimization, with earnings expected to grow more than 100% this year. Wall Street has maintained its northbound journey in 2026 albeit at a slow pace after an astonishing rally in the last three years. Several stocks have jumped this year. Here, we have five stocks that have surged year-to-date and are currently undervalued.
These stocks currently carry a top Zacks rank, indicating more price upside in the near term. The combination of a top Zacks rank and undervaluation should ensure a continued rally for these stocks in 2026. It is prudent to invest in these stocks now as they are unlikely to stay undervalued for a long time.
These stocks are: Super Micro Computer Inc. (SMCI - Free Report) , Archer-Daniels-Midland Co. (ADM - Free Report) , The Allstate Corp. (ALL - Free Report) , Centene Corp. (CNC - Free Report) and Avnet Inc. (AVT - Free Report) . Each of our picks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks year-to-date.
Image Source: Zacks Investment Research
Super Micro Computer Inc.Super Micro Computer remains positioned to benefit from expanding artificial intelligence (AI) infrastructure demand, supported by rapid adoption of new GPU platforms, its modular Building Block architecture, liquid-cooling expertise and a broader DCBBS offering. SMCI’s strong customer partnership combined with record backlog, rising shipments and expanding product portfolio, positions the company to benefit in the long term.
Solid Estimate RevisionsSuper Micro Computer has an expected revenue and earnings growth rate of 71.8% and 22%, respectively, for the current year (ending June 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 30.3% over the last 30 days.
SMCI has an expected revenue and earnings growth rate of 19.6% and 18.7%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 42.2% over the last 30 days.
Attractive Valuation The stock has a forward price/earnings (P/E) of 8.94X, compared with the industry’s P/E of 10.36X and the S&P 500’s P/E of 18.52X. It has a price/sale (P/S) of 0.67X, compared with the industry’s P/S of 5.32X and the S&P 500’s P/S of 3.09X. SMCI has a price/book (P/B) of 2.32X, significantly lower than the industry’s P/B of 16.38X and the S&P 500’s P/B of 3.71X.
Archer-Daniels-Midland Co.Archer-Daniels-Midland has been benefiting from its strategic endeavors. ADM continues to advance its Optimize, Drive and Grow pillars, enhancing productivity, accelerating cost savings, expanding BioSolutions and leveraging digital tools to unlock margin opportunities and boost customer reach. ADM’s Human Nutrition unit is gaining from Flavors, Decatur East and emerging demand for natural ingredients.
Solid Estimate RevisionsArcher-Daniels-Midland has an expected revenue and earnings growth rate of 6.6% and 52.2%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 8.5% over the last 60 days.
ADM has an expected revenue and earnings growth rate of 1.4% and 3.5%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 8.4% over the last 60 days.
Attractive Valuation The stock has a forward P/E of 16.20X, compared with the industry’s P/E of 13.48X and the S&P 500’s P/E of 18.52X. It has a P/S of 0.50X, compared with the industry’s P/S of 0.91X and the S&P 500’s P/S of 3.09X. ADM has a P/B of 1.73X, compared with the industry’s P/B of 0.98X and the S&P 500’s P/B of 3.71X.
The Allstate Corp.The Allstate has been benefiting from sustained premium growth, expanding market share, and stronger underwriting performance. ALL’s Property-Liability premiums earned rose 4.7% year over year in the first half of 2026, while policies in force increased 2.6%. Protection Services revenues grew 7.5%, driven by Allstate Protection Plans and Roadside. ALL’s Portfolio streamlining, Transformative Growth, and cost discipline are also strengthening profitability.
Solid Estimate RevisionsThe Allstate has an expected revenue and earnings growth rate of 5% and 1.9%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 2.1% over the last seven days.
ALL has an expected revenue and earnings growth rate of 4% and -21%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 1% over the last seven days.
Attractive Valuation The stock has a forward P/E of 7.31X, compared with the industry’s P/E of 11.58X and the S&P 500’s P/E of 18.52X. It has a P/S of 0.94X, compared with the industry’s P/S of 1.35X and the S&P 500’s P/S of 3.09X. ALL has a P/B of 2.07X, compared with the industry’s P/B of 1.68X and the S&P 500’s P/B of 3.71X.
Centene Corp.Centene has established itself as a national leader in healthcare services. It has a well-diversified healthcare network that primarily provides a set of services to government-sponsored healthcare programs, while serving underinsured and uninsured individuals through member-focused services.
CNC continues to benefit from disciplined pricing, portfolio optimization, favorable Medicaid rate actions, and strong Medicare Prescription Drug Plan momentum. Strategic acquisitions, partnerships, and ongoing enterprise optimization initiatives are strengthening care delivery, improving operational efficiency, and supporting long-term margin restoration.
Solid Estimate RevisionsCentene has an expected revenue and earnings growth rate of 0.8% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 3.2% over the last 30 days.
CNC has an expected revenue and earnings growth rate of -1.9% and 9.2%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 2.9% over the last 30 days.
Attractive Valuation The stock has a forward P/E of 13.70X, compared with the industry’s P/E of 23.44X and the S&P 500’s P/E of 18.52X. It has a P/S of 0.16X, compared with the industry’s P/S of 0.30X and the S&P 500’s P/S of 3.09X. CNC has a P/B of 1.46X, compared with the industry’s P/B of 2.50X and the S&P 500’s P/B of 3.71X.
Avnet Inc.Avnet enters fiscal 2027 with broad-based demand growth, longer lead times and higher backlog supporting further sales and earnings expansion. AVT’s mix of IP&E, embedded solutions, demand creation and supply-chain services should deepen customer ties and support operating leverage as volumes rise. Farnell’s recovery and tighter working-capital execution add to AVT’s upside, while lower leverage should gradually improve financial flexibility.
Solid Estimate RevisionsAvnet has an expected revenue and earnings growth rate of 23.5% and 84.3%, respectively, for the current year (ending June 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 22.9% over the last 30 days.
AVT has an expected revenue and earnings growth rate of 4.4% and 7.4%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 19.9% over the last 30 days.
Attractive Valuation The stock has a forward P/E of 8.81X, compared with the industry’s P/E of 15.49X and the S&P 500’s P/E of 18.52X. It has a P/S of 0.27X, compared with the industry’s P/S of 0.50X and the S&P 500’s P/S of 3.09X. AVT has a P/B of 1.50X, compared with the industry’s P/B of 1.55X and the S&P 500’s P/B of 3.71X.
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Avnet (AVT - Free Report) is a stock many investors are watching right now. AVT is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 10.47, while its industry has an average P/E of 12.53. AVT's Forward P/E has been as high as 16.75 and as low as 8.05, with a median of 10.50, all within the past year.
We also note that AVT holds a PEG ratio of 0.36. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AVT's PEG compares to its industry's average PEG of 0.49. AVT's PEG has been as high as 1.89 and as low as 0.35, with a median of 0.81, all within the past year.
Another notable valuation metric for AVT is its P/B ratio of 0.89. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. AVT's current P/B looks attractive when compared to its industry's average P/B of 2.12. Over the past 12 months, AVT's P/B has been as high as 1.00 and as low as 0.71, with a median of 0.91.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AVT has a P/S ratio of 0.27. This compares to its industry's average P/S of 0.5.
Finally, investors will want to recognize that AVT has a P/CF ratio of 12.36. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 16.72. Over the past year, AVT's P/CF has been as high as 13.11 and as low as 7.28, with a median of 9.98.
These are only a few of the key metrics included in Avnet's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, AVT looks like an impressive value stock at the moment.
Greenland Capital Management LP lessened its stake in shares of Avnet, Inc. (NASDAQ:AVT – Free Report) by 43.0% in the 2nd quarter, according to its most recent disclosure with the SEC. The institutional investor owned 12,613 shares of the company’s stock after selling 9,525 shares during the period. Greenland Capital Management LP’s holdings in Avnet were worth $1,120,000 at the end of the most recent quarter.
Several other institutional investors have also recently made changes to their positions in the company. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in Avnet in the second quarter worth approximately $25,000. State of Wyoming purchased a new stake in shares of Avnet during the 2nd quarter valued at $37,000. Summit Securities Group LLC acquired a new position in Avnet during the 4th quarter valued at about $28,000. BOKF NA grew its stake in shares of Avnet by 1,116.7% during the third quarter. BOKF NA now owns 584 shares of the company’s stock worth $31,000 after acquiring an additional 536 shares during the last quarter. Finally, Elevation Wealth Partners LLC grew its position in Avnet by 38.5% during the 2nd quarter. Elevation Wealth Partners LLC now owns 666 shares of the company’s stock worth $59,000 after purchasing an additional 185 shares during the last quarter. Hedge funds and other institutional investors own 95.78% of the company’s stock.
Avnet Price Performance Shares of AVT stock opened at $92.06 on Monday. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.78 and a quick ratio of 0.97. The company has a market capitalization of $7.56 billion, a PE ratio of 23.07, a price-to-earnings-growth ratio of 0.28 and a beta of 1.10. The firm’s 50-day moving average is $89.22 and its two-hundred day moving average is $80.08. Avnet, Inc. has a 12 month low of $44.25 and a 12 month high of $100.00.
Avnet (NASDAQ:AVT – Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The company reported $2.28 earnings per share for the quarter, beating the consensus estimate of $1.80 by $0.48. The business had revenue of $8.30 billion during the quarter, compared to analysts’ expectations of $7.56 billion. Avnet had a net margin of 1.21% and a return on equity of 9.57%. The business’s revenue for the quarter was up 47.7% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.81 EPS. Avnet has set its Q1 2027 guidance at 2.800-2.900 EPS. Analysts predict that Avnet, Inc. will post 10.45 earnings per share for the current year. Avnet Increases Dividend The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 23rd. Shareholders of record on Wednesday, September 9th will be paid a dividend of $0.37 per share. This represents a $1.48 annualized dividend and a yield of 1.6%. This is a positive change from Avnet’s previous quarterly dividend of $0.35. The ex-dividend date of this dividend is Wednesday, September 9th. Avnet’s payout ratio is 35.09%.
Insiders Place Their Bets In other news, SVP Michael Ryan Mccoy sold 32,052 shares of the stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $91.10, for a total transaction of $2,919,937.20. Following the completion of the transaction, the senior vice president directly owned 76,674 shares in the company, valued at approximately $6,985,001.40. This represents a 29.48% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Philip R. Gallagher sold 51,900 shares of the firm’s stock in a transaction dated Wednesday, August 12th. The stock was sold at an average price of $98.46, for a total value of $5,110,074.00. Following the sale, the chief executive officer directly owned 168,923 shares of the company’s stock, valued at $16,632,158.58. The trade was a 23.50% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 1.90% of the stock is owned by insiders.
Wall Street Analyst Weigh In AVT has been the topic of several research analyst reports. Weiss Ratings upgraded Avnet from a “hold (c+)” rating to a “buy (b)” rating in a research note on Friday, August 14th. Truist Financial upped their price target on Avnet from $95.00 to $110.00 and gave the stock a “buy” rating in a report on Thursday, August 6th. Zacks Research upgraded shares of Avnet from a “hold” rating to a “strong-buy” rating in a research report on Friday, August 7th. Wells Fargo & Company raised their target price on Avnet from $70.00 to $72.00 and gave the company an “underweight” rating in a research report on Monday, July 20th. Finally, Bank of America raised shares of Avnet from an “underperform” rating to a “neutral” rating and raised their price target for the stock from $66.00 to $96.00 in a research note on Wednesday, May 13th. Two equities research analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Avnet currently has a consensus rating of “Moderate Buy” and a consensus target price of $93.25.
Check Out Our Latest Stock Report on Avnet
Avnet Profile (Free Report)
Avnet, Inc (NASDAQ: AVT) is a global technology distributor and solutions provider specializing in the sourcing, design, and supply chain management of electronic components and embedded systems. The company offers a broad portfolio of semiconductors, interconnect, passive and electromechanical components, as well as embedded hardware and software, cloud solutions, and Internet of Things (IoT) services. Avnet’s offerings aim to support customers through every stage of the product lifecycle, from initial prototype and design to production and end-of-life management.
Founded in 1921 by Charles Avnet, the company has evolved from a regional radio parts supplier into a multinational enterprise.
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Key Takeaways Avnet benefits from AI infrastructure demand spanning data centers, industrial markets and edge applications.Avnet's fiscal 2026 IP&E sales rose to $4.6 billion from $4 billion, aided by AI infrastructure.Avnet expects fiscal 2027 first-quarter adjusted EPS of $2.80-$2.90, with estimates revised upward. Avnet, Inc. (AVT - Free Report) continues to benefit from strong artificial intelligence (AI) demand, which remains a key growth catalyst as data center applications expand. The company is also benefiting from rising demand for technologies that support AI infrastructure, including power management, connectivity, automation and other enabling solutions across industrial markets.
Avnet indicated that direct data-center business represents approximately 10-15% of total company sales, with a greater concentration in Asia-Pacific. At the same time, the AI ecosystem is creating indirect opportunities in industrial markets, as hyperscaler and data-center expansion drives demand for cooling, power and other infrastructure components.
The company is additionally seeing emerging demand from customers deploying AI at the edge, including applications such as robotics, drones and autonomous systems that require sensing, connectivity, embedded computing, power and thermal-management components. Avnet’s direct exposure to data-center customers remains particularly meaningful in Asia-Pacific.
The company is also benefiting from its higher-margin interconnect, passive and electromechanical (IP&E) portfolio. Fiscal 2026 IP&E sales reached approximately $4.6 billion compared with $4 billion in fiscal 2025. The IP&E benefited from AI infrastructure and industrial automation. Avnet ended fiscal 2026 on a strong note, with fourth-quarter sales reaching a record $8.3 billion, up 48% year over year and 17% sequentially
How Competitors Fare Against AvnetAvnet operates in a competitive technology distribution market where it competes with global component distributors as well as broader IT distributors, including Arrow Electronics (ARW - Free Report) and TD SYNNEX (SNX - Free Report) . However, Avnet benefits from the niche it has created for itself, which helps to protect its margins.
Arrow Electronics competes head-to-head with Avnet in electronic component distribution, semiconductor supply, embedded computing and engineering services. Both Arrow Electronics and Avnet serve OEMs, industrial manufacturers, automotive suppliers, communications equipment vendors and data center customers.
Avnet comes into crossroads with TD SYNNEX in the broader AI infrastructure value chain. Avnet plays its role much earlier in the technology value chain by supplying electronic components directly to equipment manufacturers, making the overlap minimal with TD SYNNEX. Given these dynamics, Avnet has little to worry right now.
AVT’s Price Performance, Valuation and EstimatesAvnet shares have soared 85.9% in the year-to-date period, outperforming the Zacks Electronics - Parts Distribution industry’s 59.8% growth.
AVT YTD Performance Chart
Image Source: Zacks Investment Research
Despite this outperformance, AVT stock is trading at a price-to-sales multiple of 0.21X, which is below the industry’s P/S multiple of 0.34X. The undervaluation is further substantiated by Zacks Value Score of A.
For the first quarter of fiscal 2027, Avnet expects adjusted EPS to be in the range of $2.80-$2.90. The Zacks Consensus Estimate for Avnet’s upcoming quarter indicates growth of 241% year over year. Estimates have been revised upward in the past 30 days.
Image Source: Zacks Investment Research
AVT currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways EV-to-EBITDA offers a fuller view of valuation by accounting for debt, unlike traditional P/E ratios.PARR, AMKR, KSS, AVT and ECVT are screened as bargain stocks with low EV-to-EBITDA ratios.Each stock meets strict criteria, including valuation, trading volume, price, growth, and Value Score. Price-to-earnings (P/E) is hands down the most commonly used metric in the value investing world. This straightforward, easy-to-calculate ratio enjoys greater popularity among valuation metrics in the investment toolkit and is preferred while uncovering bargain stocks. A widely favored approach by value investors is to chase stocks with a low P/E ratio. But even this ubiquitously used valuation multiple has a few downsides.
Although P/E is the most popular valuation metric, a more complicated multiple called EV-to-EBITDA works even better. Often considered a better alternative to P/E, it gives the true picture of a company’s valuation and earnings potential, and has a more complete approach to valuation. While P/E considers a firm’s equity portion, EV-to-EBITDA determines its total value.
Par Pacific Holdings, Inc. (PARR - Free Report) , Amkor Technology, Inc. (AMKR - Free Report) , Kohl's Corporation (KSS - Free Report) , Avnet, Inc. (AVT - Free Report) and Ecovyst Inc. (ECVT - Free Report) are some stocks with attractive EV-to-EBITDA ratios.
Why EV/EBITDA Is a Better Approach?Also dubbed as the enterprise multiple, EV-to-EBITDA is the enterprise value (EV) of a stock divided by its earnings before interest, taxes, depreciation and amortization (EBITDA). EV is the sum of a company’s market capitalization, its debt and preferred stock minus cash and cash equivalents. In essence, it is the entire value of a company. EBITDA, the other element, gives a clearer picture of a company’s profitability by removing the impact of non-cash expenses such as depreciation and amortization that dampen net earnings. It is also often used as a proxy for cash flows.
Typically, the lower the EV-to-EBITDA ratio, the more enticing it is. A low EV-to-EBITDA ratio could indicate that a stock is undervalued. Unlike the P/E ratio, EV-to-EBITDA takes debt on a company’s balance sheet into account. For this reason, it is typically used to value acquisition targets. The ratio shows the amount of debt that the acquirer has to bear. Stocks flaunting a low EV-to-EBITDA multiple could be seen as attractive takeover candidates.
Another shortcoming of P/E is that it can’t be used to value a loss-making firm. A company’s earnings are also subject to accounting estimates and management manipulation. On the other hand, EV-to-EBITDA is difficult to manipulate and can also be used to value loss-making but EBITDA-positive companies. EV-to-EBITDA is also a useful tool in measuring the value of firms that are highly leveraged and have a high degree of depreciation. Moreover, it can be used to compare companies with different levels of debt.
EV-to-EBITDA is not devoid of limitations and alone cannot conclusively determine a stock’s inherent potential and future performance. The multiple varies across industries and is usually not appropriate when comparing stocks in different industries, given their diverse capital expenditure requirements.
Thus, instead of just relying on EV-to-EBITDA, you can club it with the other major ratios, such as price-to-book (P/B), P/E and price-to-sales (P/S) to achieve the desired results.
Screening CriteriaHere are the parameters to screen for bargain stocks:
EV-to-EBITDA 12 Months-Most Recent less than X-Industry Median: A lower EV-to-EBITDA ratio represents a cheaper valuation.
P/E using (F1) less than X-Industry Median: This metric screens stocks that are trading at a discount to their peers.
P/B less than X-Industry Median: A lower P/B compared with the industry average implies that the stock is undervalued.
P/S less than X-Industry Median: The lower the P/S ratio, the more attractive the stock is, as investors will have to pay a smaller price for the same amount of sales generated by the company.
Estimated One-Year EPS Growth F(1)/F(0) greater than or equal to X-Industry Median: This parameter will help in screening stocks that have growth rates higher than the industry median.
Average 20-day Volume greater than or equal to 100,000: The addition of this metric ensures that shares can be traded easily.
Current Price greater than or equal to $5: This parameter will help in screening stocks that are trading at a minimum price of $5 or higher.
Zacks Rank less than or equal to 2: It is a fundamental truth that stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) have always managed to beat adversities and outperform the market.
Value Score of less than or equal to B: Our research shows that stocks with a Value Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.
Here are our five picks out of the 16 stocks that passed the screen:
Par Pacific Holdings is a growth-oriented energy company supplying conventional and renewable fuels across the western United States. This Zacks Rank #1 company has a Value Score of A.
Par Pacific Holdings has an expected year-over-year earnings growth rate of 182.1% for 2026. The Zacks Consensus Estimate for PARR’s 2026 earnings has moved up 30.8% over the past 60 days.
Amkor Technology is a leading provider of semiconductor packaging and test services. This Zacks Rank #1 stock has a Value Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
Amkor Technology has an expected year-over-year earnings growth rate of 73.3% for 2026. The consensus estimate for AMKR’s 2026 earnings has moved up 25% over the past 60 days.
Kohl’s is a U.S.-based department store retailer, offering moderately priced apparel, footwear and accessories for women, men and children, along with beauty and home products. This Zacks Rank #1 stock has a Value Score of A.
Kohl’s has an expected year-over-year earnings growth rate of 11.1% for the current fiscal year. The Zacks Consensus Estimate for KSS’s current fiscal-year earnings has been revised 30.4% higher over the last 60 days.
Avnet is one of the world’s largest distributors of electronic components and computer products. This Zacks Rank #1 stock has a Value Score of A.
Avnet has an expected year-over-year earnings growth rate of 84.3% for the current fiscal year. The consensus estimate for AVT’s current fiscal-year earnings has been revised 43.2% upward over the past 60 days.
Ecovyst is a leading provider of regenerated sulfuric acid, virgin sulfuric acid, and sulfur dioxide and related derivatives. This Zacks Rank #2 stock has a Value Score of A.
Ecovyst has an expected year-over-year earnings growth rate of 75% for 2026. The Zacks Consensus Estimate for ECVT’s 2026 earnings has moved up 6.1% over the past 60 days.
Raised guidance suggests that company leadership sees some combination of stronger demand, improved margins, or better operational execution relative to what they had previously expected; in other words, things are going more right than anticipated. This makes guidance increases one of the most important positive signals in a quarterly report, despite the fact that top- and bottom-line beats tend to grab headlines.
Bank of New York Mellon Corp bought a new stake in shares of Avnet, Inc. (NASDAQ:AVT – Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 843,240 shares of the company’s stock, valued at approximately $74,897,000. Bank of New York Mellon Corp owned 1.03% of Avnet as of its most recent filing with the Securities and Exchange Commission.
Several other hedge funds have also recently added to or reduced their stakes in AVT. Dimensional Fund Advisors LP increased its position in shares of Avnet by 0.4% during the first quarter. Dimensional Fund Advisors LP now owns 5,885,636 shares of the company’s stock worth $362,655,000 after buying an additional 22,137 shares during the period. AQR Capital Management LLC grew its holdings in Avnet by 30.7% during the 4th quarter. AQR Capital Management LLC now owns 2,961,608 shares of the company’s stock worth $142,394,000 after acquiring an additional 695,929 shares during the period. LSV Asset Management grew its holdings in Avnet by 7.6% during the 4th quarter. LSV Asset Management now owns 2,811,171 shares of the company’s stock worth $135,161,000 after acquiring an additional 197,400 shares during the period. Hotchkis & Wiley Capital Management LLC raised its position in shares of Avnet by 5.3% in the 3rd quarter. Hotchkis & Wiley Capital Management LLC now owns 2,011,676 shares of the company’s stock worth $105,170,000 after acquiring an additional 101,873 shares in the last quarter. Finally, Morgan Stanley raised its position in shares of Avnet by 16.2% in the 4th quarter. Morgan Stanley now owns 1,524,945 shares of the company’s stock worth $73,319,000 after acquiring an additional 212,573 shares in the last quarter. Institutional investors own 95.78% of the company’s stock.
Insiders Place Their Bets In other Avnet news, SVP Michael Ryan Mccoy sold 32,052 shares of the firm’s stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $91.10, for a total value of $2,919,937.20. Following the transaction, the senior vice president directly owned 76,674 shares of the company’s stock, valued at approximately $6,985,001.40. This trade represents a 29.48% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Philip R. Gallagher sold 51,900 shares of the firm’s stock in a transaction on Wednesday, August 12th. The shares were sold at an average price of $98.46, for a total transaction of $5,110,074.00. Following the completion of the transaction, the chief executive officer directly owned 168,923 shares in the company, valued at $16,632,158.58. This trade represents a 23.50% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.90% of the stock is owned by company insiders.
Analysts Set New Price Targets Several brokerages recently commented on AVT. Zacks Research upgraded Avnet from a “hold” rating to a “strong-buy” rating in a research report on Friday, August 7th. Truist Financial lifted their target price on Avnet from $95.00 to $110.00 and gave the stock a “buy” rating in a report on Thursday, August 6th. Wall Street Zen raised Avnet from a “buy” rating to a “strong-buy” rating in a research note on Saturday, July 25th. Weiss Ratings upgraded Avnet from a “hold (c+)” rating to a “buy (b)” rating in a report on Friday, August 14th. Finally, Wells Fargo & Company raised their price objective on shares of Avnet from $70.00 to $72.00 and gave the stock an “underweight” rating in a research report on Monday, July 20th. Two research analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $93.25. Read Our Latest Analysis on AVT
Avnet Stock Performance Shares of AVT opened at $87.57 on Wednesday. Avnet, Inc. has a one year low of $44.25 and a one year high of $100.00. The company has a market cap of $7.19 billion, a PE ratio of 21.95, a P/E/G ratio of 0.26 and a beta of 1.09. The stock has a 50-day moving average of $89.18 and a 200-day moving average of $78.70. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.78 and a quick ratio of 0.97.
Avnet (NASDAQ:AVT – Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The company reported $2.28 earnings per share for the quarter, topping analysts’ consensus estimates of $1.80 by $0.48. The business had revenue of $8.30 billion for the quarter, compared to the consensus estimate of $7.56 billion. Avnet had a return on equity of 9.57% and a net margin of 1.21%.The firm’s revenue for the quarter was up 47.7% on a year-over-year basis. During the same period in the prior year, the business earned $0.81 EPS. Avnet has set its Q1 2027 guidance at 2.800-2.900 EPS. On average, equities research analysts predict that Avnet, Inc. will post 10.45 EPS for the current fiscal year.
Avnet Increases Dividend The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 23rd. Investors of record on Wednesday, September 9th will be issued a $0.37 dividend. The ex-dividend date is Wednesday, September 9th. This represents a $1.48 dividend on an annualized basis and a dividend yield of 1.7%. This is an increase from Avnet’s previous quarterly dividend of $0.35. Avnet’s dividend payout ratio (DPR) is 35.09%.
Avnet Profile (Free Report)
Avnet, Inc (NASDAQ: AVT) is a global technology distributor and solutions provider specializing in the sourcing, design, and supply chain management of electronic components and embedded systems. The company offers a broad portfolio of semiconductors, interconnect, passive and electromechanical components, as well as embedded hardware and software, cloud solutions, and Internet of Things (IoT) services. Avnet’s offerings aim to support customers through every stage of the product lifecycle, from initial prototype and design to production and end-of-life management.
Founded in 1921 by Charles Avnet, the company has evolved from a regional radio parts supplier into a multinational enterprise.
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Avnet (AVT - Free Report) is a stock many investors are watching right now. AVT is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 10.47, while its industry has an average P/E of 12.69. Over the past 52 weeks, AVT's Forward P/E has been as high as 16.75 and as low as 8.05, with a median of 10.50.
We also note that AVT holds a PEG ratio of 0.36. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AVT's PEG compares to its industry's average PEG of 0.49. Over the last 12 months, AVT's PEG has been as high as 1.89 and as low as 0.35, with a median of 0.81.
Investors should also recognize that AVT has a P/B ratio of 0.89. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.05. Over the past 12 months, AVT's P/B has been as high as 1.00 and as low as 0.71, with a median of 0.91.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. AVT has a P/S ratio of 0.26. This compares to its industry's average P/S of 0.48.
Finally, our model also underscores that AVT has a P/CF ratio of 12.36. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. AVT's P/CF compares to its industry's average P/CF of 16.17. Over the past 52 weeks, AVT's P/CF has been as high as 13.11 and as low as 7.28, with a median of 9.98.
Value investors will likely look at more than just these metrics, but the above data helps show that Avnet is likely undervalued currently. And when considering the strength of its earnings outlook, AVT sticks out as one of the market's strongest value stocks.
Avnet, Inc. is rated a buy, with a valuation model projecting a 21.9% annualized return based on business fundamentals, not multiple expansion. AVT's Q4 annualized adjusted EBITDA of $1,348.3M underpins the bullish thesis, reflecting strong operating leverage and cost discipline. Key risks include reliance on Q4 as a run rate, potential working capital swings erasing FCF, and dilution from convertible notes with buybacks capped until September 2026.
Wall Street extended its decline to a second consecutive session on Tuesday as weakness in major technology stocks and renewed geopolitical concerns weighed on investor sentiment. The S&P 500 slipped 0.32% to close at 7,728.20, while the technology-heavy Nasdaq Composite declined 0.60% to 26,445.45. The Dow Jones Industrial Average also finished lower, falling 184.13 points, or 0.34%, to 53,791.85.
Beyond the technology sell-off, investor sentiment was further pressured by higher oil prices and fading expectations that the Strait of Hormuz would reopen. The setback added to existing uncertainty over whether the United States and Iran can reach an amicable solution, leaving geopolitical risk as an important overhang for equities.
Against this backdrop, value stocks could offer investors a compelling way to navigate heightened market uncertainty. These stocks typically trade at more modest valuations relative to their underlying fundamentals, which may limit their exposure to the sharp valuation compression that can occur when investor risk appetite weakens. Companies with established businesses, consistent cash flows, solid balance sheets and reasonable valuations could, therefore, offer an attractive combination of resilience and long-term appreciation potential.
When evaluating value stocks, one of the most effective valuation metrics is the Price to Cash Flow (P/CF) ratio. This metric measures the market price of a stock relative to the cash flow the company generates per share. A lower P/CF ratio indicates that the stock is trading at a better value, offering strong cash generation potential relative to its price. Here are four companies — Avnet, Inc. (AVT - Free Report) , Lifetime Brands, Inc. (LCUT - Free Report) , Arrow Electronics, Inc. (ARW - Free Report) and Inter&Co, Inc. (INTR - Free Report) — that boast a low P/CF ratio.
Questions may arise as to why we are considering the P/CF valuation metric when the most widely used metric is Price/Earnings (or P/E). Well, what makes P/CF stand out is that operating cash flow adds back non-cash charges such as depreciation and amortization to net income, reflecting a company's financial health.
Analysts caution that a company’s earnings are subject to accounting estimates and management manipulation. However, cash flow is reliable. It is net cash flow that reveals how much money a company is actually generating and how effectively management is putting the same to use.
A positive cash flow indicates an increase in the company’s liquid assets. This gives the company the means to settle debt, shell out for its expenses, reinvest in its business, endure downturns and finally pay back its shareholders. Then again, a negative cash flow implies a decline in the company’s liquidity, which lowers its flexibility to support these moves.
What’s the Best Value Investing Strategy?
An investment decision solely based on the P/CF metric may not fetch the desired results. To identify stocks that are trading at a discount, you should expand your search criteria and also consider the price-to-book ratio, price-to-earnings ratio and price-to-sales ratio. Adding a favorable Zacks Rank and a Value Score of A or B to your search criteria should lead to even better results as these eliminate the chance of falling into a value trap.
Here are the parameters for selecting true-value stocks:
P/CF less than or equal to X-Industry Median.
Price greater than or equal to 5: The stocks must all be trading at a minimum of $5 or higher.
Average 20-Day Volume greater than 100,000: A substantial trading volume ensures that the stock is easily tradable.
P/E using (F1) less than or equal to X-Industry Median: This parameter shortlists stocks that are trading at a discount or are equal to their peers.
P/B less than or equal to X-Industry Median: A lower P/B compared with the industry average implies that there is enough room for the stock to gain.
P/S less than or equal to X-Industry Median: The P/S ratio determines how a stock price compares to the company’s sales — the lower the ratio, the more attractive the stock is.
PEG less than 1: The ratio is used to determine a stock's value by taking the company's earnings growth into account. The PEG ratio portrays a more complete picture than the P/E ratio. A value of less than 1 indicates that the stock is undervalued and that investors need to pay less for a stock that has robust earnings growth prospects.
Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.
Value Score of less than or equal to B: Our research shows that stocks with a Style Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.
Here are four of the 14 value stocks that qualified the screening:
Avnet, a leading global technology distributor and solutions provider, sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 13.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Avnet’s current financial-year sales and EPS indicates growth of 14.9% and 70.4%, respectively, from the year-ago period. AVT has a Value Score of B. Shares of AVT have surged 75.3% over the past year.
Lifetime Brands, a leading global provider of branded kitchenware, tableware and other products, sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 271.1%, on average.
The Zacks Consensus Estimate for Lifetime Brands’ current financial-year sales and EPS indicates growth of 4% and 71.6%, respectively, from the year-ago period. LCUT has a Value Score of A. Shares of LCUT have soared 143.8% over the past year.
Arrow Electronics sources and engineers technology solutions for thousands of leading manufacturers and service providers. The stock sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 34.4%, on average.
The Zacks Consensus Estimate for Arrow Electronics’ current financial-year sales and EPS indicates growth of 22.2% and 85.5%, respectively, from the year-ago period. ARW has a Value Score of A. Shares of ARW have risen 62.1% over the past year.
Inter&Co, the leading super app providing financial and digital commerce services, carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 4.6%, on average.
The Zacks Consensus Estimate for INTR’s current financial-year sales and EPS indicates growth of 39% and 49.1%, respectively, from the year-ago period. INTR has a Value Score of A. Shares of INTR have declined 36.4% over the past year.
Avnet (AVT - Free Report) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.
Analysts' growing optimism on the earnings prospects of this distributor of electronic components is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Avnet, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate RevisionsFor the current quarter, the company is expected to earn $2.42 per share, which is a change of +188.1% from the year-ago reported number.
The Zacks Consensus Estimate for Avnet has increased 72.89% over the last 30 days, as one estimate has gone higher compared to no negative revisions.
Current-Year Estimate RevisionsFor the full year, the company is expected to earn $8.50 per share, representing a year-over-year change of +49.9%.
In terms of estimate revisions, the trend for the current year also appears quite encouraging for Avnet. Over the past month, one estimate has moved higher compared to no negative revisions, helping the consensus estimate increase 16.44%.
Favorable Zacks RankThanks to promising estimate revisions, Avnet currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom LineInvestors have been betting on Avnet because of its solid estimate revisions, as evident from the stock's 10.8% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.
Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Avnet (AVT - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.
Avnet is one of 614 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #2 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Avnet is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for AVT's full-year earnings has moved 19.9% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, AVT has moved about 100.8% on a year-to-date basis. At the same time, Computer and Technology stocks have gained an average of 18.3%. This means that Avnet is outperforming the sector as a whole this year.
Another stock in the Computer and Technology sector, Broadcom Inc. (AVGO - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 23.6%.
In Broadcom Inc.'s case, the consensus EPS estimate for the current year increased 2.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Avnet belongs to the Electronics - Parts Distribution industry, which includes 4 individual stocks and currently sits at #4 in the Zacks Industry Rank. This group has gained an average of 67.8% so far this year, so AVT is performing better in this area.
Broadcom Inc., however, belongs to the Electronics - Semiconductors industry. Currently, this 49-stock industry is ranked #31. The industry has moved +33.1% so far this year.
Avnet and Broadcom Inc. could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.
Have you assessed how the international operations of Avnet (AVT - Free Report) performed in the quarter ended June 2026? For this distributor of electronic components, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.
In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.
Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.
In our recent assessment of AVT's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
The company's total revenue for the quarter stood at $8.3 billion, increasing 47.7% year over year. Now, let's delve into AVT's international revenue breakdown to gain insights into the significance of its operations beyond home turf.
A Closer Look at AVT's Revenue Streams AbroadOf the total revenue, $3.94 billion came from Asia during the last fiscal quarter, accounting for 47.5%. This represented a surprise of +8.25% as analysts had expected the region to contribute $3.64 billion to the total revenue. In comparison, the region contributed $3.46 billion, or 48.6%, and $2.69 billion, or 47.9%, to total revenue in the previous and year-ago quarters, respectively.
EMEA accounted for 27.7% of the company's total revenue during the quarter, translating to $2.3 billion. Revenues from this region represented a surprise of +9.61%, with Wall Street analysts collectively expecting $2.1 billion. When compared to the preceding quarter and the same quarter in the previous year, EMEA contributed $2.05 billion (28.7%) and $1.6 billion (28.5%) to the total revenue, respectively.
Projected Revenues in Foreign MarketsThe current fiscal quarter's total revenue for Avnet, as projected by Wall Street analysts, is expected to reach $9.15 billion, reflecting an increase of 55.2% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Asia is anticipated to contribute 36.6% or $3.35 billion, and EMEA 21% or $1.92 billion.
For the full year, a total revenue of $31.76 billion is expected for the company, reflecting an increase of 14.9% from the year before. The revenues from Asia and EMEA are expected to make up 41.6%, and 23.8% of this total, corresponding to $13.19 billion, and $7.57 billion, respectively.
Wrapping UpRelying on international markets for revenues, Avnet faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.
In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.
We at Zacks strongly focus on the dynamic earnings forecast of companies, given that empirical studies have demonstrated its potent impact on the immediate price movement of stocks. Invariably, there's a positive relationship -- upward earnings predictions often result in an increase in stock prices.
Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.
Currently, Avnet holds a Zacks Rank #1 (Strong Buy), signifying its potential to outperform the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
A Review of Avnet's Recent Stock Market PerformanceOver the past month, the stock has gained 10.8% versus the Zacks S&P 500 composite's 3.4% increase. The Zacks Computer and Technology sector, of which Avnet is a part, has risen 2.8% over the same period. The company's shares have increased 14.8% over the past three months compared to the S&P 500's 6% increase. Over the same period, the sector has risen 3%
Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:
CrossAmerica Partners LP (CAPL - Free Report) : This fuel distribution and convenience store company has seen the Zacks Consensus Estimate for its current year earnings increasing 25.5% over the last 60 days.
JP Morgan Chase & Co. (JPM - Free Report) : This bank and financial holding company has seen the Zacks Consensus Estimate for its current year earnings increasing 11.7% over the last 60 days.
Avnet, Inc. (AVT - Free Report) : This electronics distribution company has seen the Zacks Consensus Estimate for its current year earnings increasing 16.4% over the last 60 days.
LATAM Airlines Group S.A. (LTM - Free Report) : This air transportation company has seen the Zacks Consensus Estimate for its current year earnings increasing 26.4% over the last 60 days.
Pagaya Technologies Ltd. (PGY - Free Report) : This product-focused technology company has seen the Zacks Consensus Estimate for its current year earnings increasing 15.2% over the last 60 days.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Avnet beat fiscal Q4 estimates as revenues hit $8.30 billion and adjusted EPS reached $2.28.AVT guides fiscal Q1 sales to $9.0-$9.3 billion, with units and mix driving most of the growth.Avnet sees recovery across regions and end markets as margins and inventory turns continue improving. Avnet, Inc. (AVT - Free Report) framed the electronics recovery as broad-based rather than dependent on memory pricing or artificial intelligence. Management cited stronger bookings, longer lead times and improving demand across regions and end markets.
Avnet’s fourth-quarter fiscal 2026 adjusted earnings of $2.28 per share beat the Zacks Consensus Estimate of $1.76. Revenues of $8.30 billion also topped the consensus estimate of $7.45 billion by 11.30%.
AVT Guides for Another Step-UpChief financial officer Ken Jacobson guided first-quarter fiscal 2027 sales to $9.0-$9.3 billion and adjusted earnings to $2.80-$2.90 per share. The sales midpoint implies approximately 10% sequential growth.
The outlook assumes growth across all Electronic Components regions and Farnell, similar interest expense, a 21-25% tax rate and 85 million diluted shares. Jacobson said pricing contributes only modestly, leaving units and mix as the main drivers.
Chief executive officer Phil Gallagher said regional book-to-bill ratios are solidly above 1 and backlog extends well into fiscal 2027. He called December healthy, while Jacobson said it could exceed normal seasonality without double-digit sequential growth.
Avnet Sees a Broadening RecoveryGallagher said AI remains a catalyst, but improvement now spans industrial, transportation, aerospace and defense, networking, and data center markets. Every Electronic Components region and Farnell grew sequentially and year over year.
Avnet also sees edge AI lifting demand for sensing, connectivity, embedded computing, power and thermal management in robotics, drones and autonomous systems. Gallagher linked that opportunity to engineering support and global supply-chain capabilities.
The Americas grew fastest, but Gallagher said the advance was not mainly a data center story. Industrial and aerospace and defense led, while transportation and communications also improved.
AVT Converts Volume Into MarginJacobson said adjusted operating margin reached 3.8%, up 73 basis points sequentially, as adjusted operating income grew roughly 2.6 times sales. SG&A fell to 63% of gross profit from 70% in the prior quarter.
Electronic Components operating margin reached 4.1%, its highest in more than two years. Farnell reached 9.0%, its best in more than three years, and remains targeted for double digits before fiscal 2027 ends.
Management continues to target progress toward a 5% company operating margin. Jacobson said Electronic Components gross-margin gains depend partly on regional mix as Asia stays strong and the more profitable Western regions recover.
Avnet Addresses Pricing and InventoryAnswering a Wells Fargo analyst, Gallagher said non-memory supplier price increases are broadening but remain smaller than memory increases. Avnet generally passes them through without extra markup, supporting gross profit dollars more than margin percentage.
Jacobson said memory pricing generated about one-third of both year-over-year and sequential revenue growth, plus roughly one-third of gross-profit-dollar growth. The first-quarter outlook includes only modest pricing.
Inventory days improved to 71, including less than 65 for Electronic Components. Jacobson called inventory healthy and said faster turns support investment as lead times extend. More than half of the $600 million inventory increase reflected pricing, substantially all memory.
AVT Sees More Runway in the CycleA Truist Securities analyst pressed on cycle timing. Gallagher placed the recovery around the third or fourth inning based on bookings, backlog and customer discussions, rather than near a late-cycle peak.
A Bank of America analyst asked whether orders reflected precautionary buying or consumption. Jacobson said some large customers seek safety stocks, but indicators show no significant inventory accumulation, while supply constraints limit memory availability.
Gallagher added that Avnet challenges abrupt forecast spikes, works with suppliers to screen for double bookings and monitors cancellations. Management said those signals align with field forecasts and the guidance range.
Avnet Enters Fiscal 2027 With DisciplineManagement paired confidence in demand with continued working-capital and expense control. Jacobson expects SG&A to fall below 60% of gross profit before fiscal 2027 ends and near-term earnings growth to run about three times sales growth.
Capital allocation will prioritize funding accelerating growth and supporting the dividend. Avnet ended the quarter at 3.2 times gross leverage and expects approximately 3 times by calendar year-end while supporting higher receivables and inventory.
AVT's Zacks Signals Remain MixedAVT carries a Zacks Rank #3 (Hold) at present. Its Value Score of A and Momentum Score of B are favorable, while its Growth Score of D is weaker. The VGM Score of B reflects a favorable combined profile. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Style Scores complement the Zacks Rank, and a Hold can still carry stronger grades. AVT's setup is balanced rather than uniformly positive. The Zacks Rank can change as analysts revise estimates after the just-reported results.
Key Takeaways Avnet posted 47.7% revenue growth and a 181.5% jump in adjusted earnings per share.AVT achieved record sales at Electronic Components and Farnell amid broad-based demand.Avnet expects fiscal 2027 first-quarter revenues of $9B-$9.3B and adjusted EPS of $2.80-$2.90. Avnet, Inc. (AVT - Free Report) reported fourth-quarter fiscal 2026 adjusted earnings of $2.28 per share, beating the Zacks Consensus Estimate of $1.76 by 29.55%. The bottom line surged 181.5% year over year.
Revenues increased 47.7% year over year to $8.30 billion and surpassed the consensus mark of $7.46 billion by 11.28%. Broad-based regional and end-market demand supported the performance, while inventory days improved to 71 from 77 in the preceding quarter.
Avnet beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 13.77%.
AVT Posts Record Sales Across Operating GroupsElectronic Components revenues climbed 49% year over year and 17% sequentially to a record $7.80 billion. The segment benefited from improving demand across regions, stronger customer ordering patterns and healthy demand-creation activity.
Farnell revenues rose 29.4% year over year and 10% sequentially to a record $500.1 million. Management highlighted improving demand, execution against Farnell’s strategy and increased use of its digital platform within Avnet’s broader supplier and customer relationships.
Avnet Sees Growth Across Regions and MarketsAmericas revenues jumped 55.3% year over year and 27.6% sequentially to $2.06 billion. Growth was diversified across end markets, with aerospace and defense, industrial, communications and transportation contributing to the regional improvement.
EMEA revenues rose 43.7% year over year to $2.30 billion, while Asia revenues advanced 46.3% to $3.94 billion. Asia represented 47% of total sales. All end markets delivered double-digit growth both year over year and sequentially, led by data center, networking, aerospace and defense, and industrial demand.
AVT Expands Margins Through Operating LeverageGross margin was 10.4%, up 5 basis points sequentially but down 14 basis points year over year. Electronic Components gross margin was stable sequentially, while Farnell’s gross margin improved nearly 400 basis points year over year, primarily due to a better mix of higher-margin on-board components.
Adjusted operating income surged 122.5% year over year and 44.1% sequentially to $317.9 million. Adjusted operating margin expanded 129 basis points year over year and 73 basis points sequentially to 3.8%, reflecting strong operating leverage and disciplined expense management.
Avnet’s Segment Profitability AcceleratesElectronic Components operating income reached $317 million, while operating margin expanded 107 basis points year over year and 54 basis points sequentially to 4.1%. Improvement in the Americas and Europe supported the segment’s third consecutive quarter of margin expansion.
Farnell operating income increased to $45 million, with operating margin expanding 468 basis points year over year and 373 basis points sequentially to 9%. The result marked Farnell’s seventh consecutive quarter of operating margin improvement. Management expects the business to achieve double-digit operating margins before the end of fiscal 2027.
AVT Benefits From Pricing and Tighter SupplyHigher memory pricing accounted for approximately one-third of both sequential and year-over-year sales growth. Management noted that pricing similarly contributed about one-third of gross profit dollar growth, though price increases are generally passed through to customers and do not necessarily lift gross margin percentage.
Lead times continued to extend across semiconductor and interconnect, passive and electromechanical products. Book-to-bill ratios remained well above parity in all regions, while backlog expanded and provided greater visibility into fiscal 2027. Management said the recovery had broadened beyond artificial intelligence and data center demand into industrial, automation and edge-computing applications.
Avnet Improves Working Capital EfficiencyWorking capital days declined seven days sequentially to 69, while return on working capital reached 19%, exceeding management’s near-term target of 16%. Inventory totaled $6.07 billion, up $607 million sequentially, with more than half of the increase tied to pricing, primarily in memory.
AVT used $291 million in operating cash during the quarter to support $1.2 billion of sequential sales growth. Gross leverage improved to 3.2X from 3.6X in the prior quarter, and the company ended the period with $1.2 billion of available committed borrowing capacity. It returned $29 million to shareholders through dividends.
Avnet ended fiscal 2026 with cash and cash equivalents of $155.4 million and long-term debt of $2.48 billion.
AVT Guides for Strong Fiscal 2027 StartFor the first quarter of fiscal 2027, Avnet expects revenues between $9 billion and $9.30 billion. The midpoint of $9.15 billion implies approximately 10% sequential growth, with sales increases anticipated across all Electronic Components regions and Farnell.
Adjusted earnings are projected between $2.80 and $2.90 per share. The outlook assumes interest expense similar to the fourth quarter, an adjusted effective tax rate between 21% and 25%, and approximately 85 million diluted shares outstanding.
AVT’s Zacks Rank and Stocks to ConsiderAvnet currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology sector are Lumentum (LITE - Free Report) , Applied Materials (AMAT - Free Report) and Analog Devices (ADI - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Lumentum have surged 123% year to date. The Zacks Consensus Estimate for LITE’s fiscal 2026 earnings is pegged at $8.19 per share, up by 5 cents over the past 30 days, indicating an increase of 297.6% year over year.
Shares of Applied Materials have jumped 107.9% year to date. The Zacks Consensus Estimate for AMAT’s fiscal 2026 earnings is pegged at $12.14 per share, up by 3 cents over the past 30 days, calling for a rise of 28.9% year over year.
Analog Devices shares have rallied 39.2% year to date. The Zacks Consensus Estimate for ADI’s fiscal 2026 earnings is pegged at $12.42 per share, up by 10 cents over the past 30 days, suggesting an increase of 33.9% year over year.
Bank Earnings Are Roaring, But Wall Street Isn't Ready to CelebrateAvnet NASDAQ: AVT reported record fourth-quarter fiscal 2026 sales and adjusted earnings, citing broad-based demand improvement across regions and end markets, higher component pricing and operating leverage. The company also issued first-quarter fiscal 2027 guidance calling for additional sales and earnings growth.
Fourth-quarter sales reached a record $8.3 billion, up 48% from a year earlier and 17% sequentially, Chief Financial Officer Ken Jacobson said. Adjusted diluted earnings per share rose to a quarterly record of $2.28, while adjusted operating income totaled $318 million and the adjusted operating margin reached 3.8%.
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“It was a record quarter for Avnet that exceeded our sales and EPS guidance,” Chief Executive Officer Phil Gallagher said. He said results were supported by improving demand in the company’s core markets, execution by its teams and margin expansion from operating leverage.
Growth Across Regions and Businesses Sales grew year over year in all three major regions, increasing 55% in the Americas, 46% in Asia and 44% in EMEA. Asia represented 47% of total company sales during the quarter.
Avnet’s Electronic Components business posted record sales, with revenue up 49% year over year and 17% sequentially. All three regions reported double-digit year-over-year and sequential growth in the segment. The Americas recorded its fourth consecutive quarter of year-over-year growth, while Asia reached $3.9 billion in sales and its eighth consecutive quarter of year-over-year growth, Gallagher said.
In the Americas, Gallagher said growth was diversified across verticals rather than concentrated in data center activity. Aerospace and defense revenue rose roughly 40% to 45% year over year, while industrial, communications, transportation and consumer markets also increased. In Asia, demand was led by data center, transportation, networking and industrial markets. EMEA posted growth for a third consecutive quarter, aided by data center and industrial demand, though transportation growth was slower.
Farnell also delivered record sales, which rose 29% year over year and 10% sequentially. Its operating income was $45 million and operating margin reached 9%, up nearly 400 basis points from the prior quarter. Jacobson said this was Farnell’s highest operating margin in more than three years and its seventh consecutive quarter of margin expansion.
Farnell’s gross margin rose nearly 400 basis points year over year and more than 200 basis points sequentially, primarily because of a better mix of higher-margin on-the-board components. The company said Farnell remains on track to reach double-digit operating margins before the end of fiscal 2027.
Pricing, Supply Conditions and Demand Memory pricing accounted for approximately one-third of both the sequential and year-over-year sales growth in the fourth quarter, Jacobson said. He added that pricing increases also contributed about one-third of gross-profit-dollar growth, with no meaningful difference between pricing’s impact on sales and gross profit dollars.
Gallagher said price increases were beginning to broaden beyond memory into other semiconductor and interconnect, passive and electromechanical product categories. However, he said the increases outside memory were more modest, and some parts of the portfolio continued to experience price deflation.
The company’s first-quarter guidance assumes only modest price increases, Jacobson said, with projected growth driven primarily by unit volumes and a mix of higher average selling price products.
Gallagher said supply conditions tightened during the quarter, with lead times extending across most component categories. While AI and data center investment remains an industry catalyst, he said demand has broadened into power management, connectivity, automation and edge-AI applications. He cited robotics, drones and autonomous systems as emerging applications requiring sensing, embedded computing, connectivity, power and thermal-management technologies.
Management said it has not seen evidence of material excess customer inventory or abnormal order cancellations. Customers, particularly larger original equipment manufacturers, are seeking to build safety stock in some cases, Jacobson said, but management believes demand is increasingly tied to consumption. Gallagher said Avnet works with suppliers and customers to identify potential double ordering and challenge unusual forecast increases.
Margins, Inventory and Capital Allocation Gross profit dollars increased 46% year over year, broadly in line with sales growth. Gross margin was 10.4%, up five basis points sequentially but down 14 basis points from the prior-year period.
Electronic Components’ operating income was $317 million, and its operating margin was 4.1%, up 54 basis points sequentially. Jacobson said it was the segment’s highest operating margin in more than two years. He expects SG&A expense as a percentage of gross profit dollars to improve to below 60% before the end of fiscal 2027, from 63% in the fourth quarter.
Working capital increased $559 million sequentially, largely reflecting higher receivables associated with $1.2 billion of sequential sales growth. Working-capital days declined seven days to 69 days, while inventory days improved to 71 from 77 in the prior quarter. More than half of the $600 million increase in inventory dollars was related to pricing, substantially all of it tied to memory, Jacobson said.
Avnet ended the quarter with gross leverage of 3.2 times, down from 3.6 times in the third quarter, and approximately $1.2 billion in available committed borrowing capacity. The company said it expects to reach its leverage target of approximately three times by the end of the calendar year. During fiscal 2026, Avnet returned $138 million through share repurchases and $114 million in dividends.
First-Quarter Outlook For the first quarter of fiscal 2027, Avnet forecast sales of $9 billion to $9.3 billion and adjusted diluted EPS of $2.80 to $2.90. At the midpoint, the sales outlook implies approximately 10% sequential growth.
The forecast assumes current market conditions persist, interest expense similar to the fourth quarter, an adjusted tax rate of 21% to 25% and 85 million diluted shares outstanding. Gallagher said book-to-bill ratios in all regions are “solidly above one,” while backlog is healthy and extending into fiscal 2027.
Asked about the stage of the market cycle, Gallagher described the company as likely in the “third or fourth inning,” adding that the environment does not appear to be near its end. He said December-quarter demand was currently looking healthy, potentially better than seasonal patterns, though he did not provide guidance beyond the first quarter.
About Avnet (NASDAQ:AVT)Avnet, Inc NASDAQ: AVT is a global technology distributor and solutions provider specializing in the sourcing, design, and supply chain management of electronic components and embedded systems. The company offers a broad portfolio of semiconductors, interconnect, passive and electromechanical components, as well as embedded hardware and software, cloud solutions, and Internet of Things (IoT) services. Avnet's offerings aim to support customers through every stage of the product lifecycle, from initial prototype and design to production and end-of-life management.
Founded in 1921 by Charles Avnet, the company has evolved from a regional radio parts supplier into a multinational enterprise.
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Avnet, Inc. (AVT) Q4 2026 Earnings Call August 5, 2026 12:00 PM EDT
Company Participants
Lisa Mueller - Director of Investor Relations
Philip Gallagher - CEO, President of Electronic Components, Member of Executive Board & Director
Ken Jacobson - Chief Financial Officer
Conference Call Participants
Joseph Quatrochi - Wells Fargo Securities, LLC, Research Division
William Stein - Truist Securities, Inc., Research Division
Ruplu Bhattacharya - BofA Securities, Research Division
Melissa Dailey Fairbanks - Raymond James & Associates, Inc., Research Division
Presentation
Operator
Welcome to the Avnet Fourth Quarter Fiscal Year 2026 Earnings Call. I would now like to turn the floor over to Lisa Mueller, Director of Investor Relations for Avnet. Please go ahead.
Lisa Mueller
Director of Investor Relations
Thank you, operator. I'd like to welcome everyone to Avnet's Fourth Quarter Fiscal Year 2026 Earnings Conference Call. This morning, Avnet released financial results for the fourth quarter of fiscal year 2026, and the release is available on the Investor Relations section of Avnet's website, along with a slide presentation, which you may access at your convenience.
As a reminder, some of the information contained in the news release and on this conference call contain forward-looking statements that involve risks, uncertainties and assumptions that are difficult to predict. Such forward-looking statements are not a guarantee of performance, and the company's actual results could differ materially from those contained in such statements. Several factors that could cause or contribute to such differences are described in detail in Avnet's most recent Form 10-Q and 10-K and subsequent filings with the SEC.
These forward-looking statements speak only as of the date of this presentation, and the company undertakes no obligation to publicly update any forward-looking statements or supply new information regarding the circumstances after the date of this presentation. Please note, unless otherwise stated, all results provided will be non-GAAP
Avnet (AVT - Free Report) reported $8.3 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 47.7%. EPS of $2.28 for the same period compares to $0.81 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $7.45 billion, representing a surprise of +11.28%. The company delivered an EPS surprise of +29.55%, with the consensus EPS estimate being $1.76.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Avnet performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Sales- Farnell: $500.1 million versus the two-analyst average estimate of $490.35 million. The reported number represents a year-over-year change of +29.4%.Sales- Electronic Components: $7.8 billion versus the two-analyst average estimate of $6.96 billion. The reported number represents a year-over-year change of +49%.Operating Income (loss)- Electronic Components: $317.2 million compared to the $277.33 million average estimate based on two analysts.Operating Income (loss)- Corporate expenses: $-44.1 million versus $-49.36 million estimated by two analysts on average.Operating Income (loss)- Farnell: $44.8 million versus $28.18 million estimated by two analysts on average.View all Key Company Metrics for Avnet here>>>
Shares of Avnet have returned +13.6% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Avnet (AVT - Free Report) came out with quarterly earnings of $2.28 per share, beating the Zacks Consensus Estimate of $1.76 per share. This compares to earnings of $0.81 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +29.55%. A quarter ago, it was expected that this distributor of electronic components would post earnings of $1.33 per share when it actually produced earnings of $1.48, delivering a surprise of +11.28%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Avnet, which belongs to the Zacks Electronics - Parts Distribution industry, posted revenues of $8.3 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 11.28%. This compares to year-ago revenues of $5.62 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Avnet shares have added about 92.5% since the beginning of the year versus the S&P 500's gain of 13%.
What's Next for Avnet?While Avnet has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Avnet was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.66 on $7.21 billion in revenues for the coming quarter and $7.30 on $28.12 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Parts Distribution is currently in the top 4% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Arrow Electronics (ARW - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.
This electronics maker is expected to post quarterly earnings of $4.45 per share in its upcoming report, which represents a year-over-year change of +83.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Arrow Electronics' revenues are expected to be $9.45 billion, up 24.7% from the year-ago quarter.
Avnet (NASDAQ:AVT – Get Free Report) is anticipated to release its Q4 2026 results before the market opens on Wednesday, August 5th. Analysts expect the company to post earnings of $1.80 per share and revenue of $7.5568 billion for the quarter. Parties may review the information on the company’s upcoming Q4 2026 earning report page for the latest details on the call scheduled for Wednesday, August 5, 2026 at 12:00 PM ET.
Avnet Price Performance Shares of AVT stock opened at $88.88 on Tuesday. The company has a quick ratio of 1.05, a current ratio of 2.01 and a debt-to-equity ratio of 0.50. Avnet has a 12-month low of $44.25 and a 12-month high of $95.26. The firm has a fifty day moving average of $87.66 and a 200-day moving average of $74.40. The firm has a market capitalization of $7.29 billion, a price-to-earnings ratio of 34.58, a price-to-earnings-growth ratio of 0.28 and a beta of 1.09.
Avnet Announces Dividend The firm also recently announced a quarterly dividend, which was paid on Wednesday, June 17th. Shareholders of record on Wednesday, June 3rd were issued a dividend of $0.35 per share. The ex-dividend date was Wednesday, June 3rd. This represents a $1.40 annualized dividend and a yield of 1.6%. Avnet’s payout ratio is currently 54.47%.
Analyst Ratings Changes Several equities research analysts have issued reports on the company. Wells Fargo & Company increased their price target on Avnet from $70.00 to $72.00 and gave the stock an “underweight” rating in a report on Monday, July 20th. Wall Street Zen upgraded Avnet from a “buy” rating to a “strong-buy” rating in a research report on Saturday, July 25th. Zacks Research cut Avnet from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, June 30th. Weiss Ratings downgraded shares of Avnet from a “buy (b-)” rating to a “hold (c+)” rating in a report on Tuesday, July 28th. Finally, Truist Financial lifted their price target on shares of Avnet to $95.00 and gave the company a “buy” rating in a research note on Wednesday, April 29th. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Avnet presently has a consensus rating of “Hold” and a consensus target price of $89.50.
Check Out Our Latest Analysis on Avnet
Institutional Inflows and Outflows Hedge funds have recently added to or reduced their stakes in the business. Summit Securities Group LLC acquired a new position in shares of Avnet during the 4th quarter worth about $28,000. BOKF NA increased its position in shares of Avnet by 1,116.7% in the third quarter. BOKF NA now owns 584 shares of the company’s stock valued at $31,000 after acquiring an additional 536 shares during the last quarter. Kestra Advisory Services LLC acquired a new stake in shares of Avnet in the fourth quarter valued at about $90,000. EverSource Wealth Advisors LLC raised its holdings in Avnet by 81.8% during the second quarter. EverSource Wealth Advisors LLC now owns 1,918 shares of the company’s stock worth $102,000 after acquiring an additional 863 shares in the last quarter. Finally, Quarry LP boosted its position in Avnet by 6,080.5% during the fourth quarter. Quarry LP now owns 2,534 shares of the company’s stock valued at $122,000 after purchasing an additional 2,493 shares during the last quarter. Institutional investors own 95.78% of the company’s stock.
Avnet Company Profile (Get Free Report)
Avnet, Inc (NASDAQ: AVT) is a global technology distributor and solutions provider specializing in the sourcing, design, and supply chain management of electronic components and embedded systems. The company offers a broad portfolio of semiconductors, interconnect, passive and electromechanical components, as well as embedded hardware and software, cloud solutions, and Internet of Things (IoT) services. Avnet’s offerings aim to support customers through every stage of the product lifecycle, from initial prototype and design to production and end-of-life management.
Founded in 1921 by Charles Avnet, the company has evolved from a regional radio parts supplier into a multinational enterprise.
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AVT heads into Q4 earnings with AI, networking and industrial demand lifting growth, but investors are watching if margin pressures temper the upbeat outlook.
Bank of Nova Scotia boosted its position in shares of Avnet, Inc. (NASDAQ:AVT – Free Report) by 220.3% during the 1st quarter, according to its most recent 13F filing with the SEC. The fund owned 104,100 shares of the company’s stock after purchasing an additional 71,600 shares during the quarter. Bank of Nova Scotia owned about 0.13% of Avnet worth $6,415,000 at the end of the most recent reporting period.
Other institutional investors and hedge funds have also bought and sold shares of the company. Royal Bank of Canada lifted its position in Avnet by 3.0% in the 1st quarter. Royal Bank of Canada now owns 71,697 shares of the company’s stock valued at $3,447,000 after acquiring an additional 2,101 shares in the last quarter. Goldman Sachs Group Inc. raised its stake in shares of Avnet by 16.0% in the first quarter. Goldman Sachs Group Inc. now owns 231,814 shares of the company’s stock worth $11,148,000 after purchasing an additional 31,919 shares during the last quarter. United Services Automobile Association bought a new position in shares of Avnet during the first quarter valued at $267,000. Empowered Funds LLC lifted its holdings in shares of Avnet by 9.3% during the first quarter. Empowered Funds LLC now owns 8,142 shares of the company’s stock valued at $392,000 after purchasing an additional 696 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in Avnet by 4.9% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 353,757 shares of the company’s stock worth $17,012,000 after buying an additional 16,443 shares in the last quarter. 95.78% of the stock is currently owned by institutional investors.
Wall Street Analyst Weigh In A number of analysts have recently issued reports on the stock. Wells Fargo & Company raised their price target on shares of Avnet from $70.00 to $72.00 and gave the company an “underweight” rating in a report on Monday, July 20th. Truist Financial boosted their target price on shares of Avnet to $95.00 and gave the company a “buy” rating in a research note on Wednesday, April 29th. Zacks Research cut Avnet from a “strong-buy” rating to a “hold” rating in a report on Tuesday, June 30th. Bank of America upgraded Avnet from an “underperform” rating to a “neutral” rating and raised their price target for the stock from $66.00 to $96.00 in a research note on Wednesday, May 13th. Finally, Weiss Ratings raised Avnet from a “hold (c+)” rating to a “buy (b-)” rating in a report on Monday, July 13th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $89.50.
Check Out Our Latest Stock Report on Avnet
Avnet Price Performance Shares of Avnet stock opened at $88.38 on Tuesday. The stock has a market cap of $7.25 billion, a P/E ratio of 34.39, a P/E/G ratio of 0.28 and a beta of 1.09. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.05 and a current ratio of 2.01. The stock’s fifty day moving average is $87.41 and its 200 day moving average is $73.09. Avnet, Inc. has a one year low of $44.25 and a one year high of $95.26.
Avnet (NASDAQ:AVT – Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The company reported $1.48 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.33 by $0.15. Avnet had a return on equity of 7.07% and a net margin of 0.86%.The business had revenue of $7.12 billion during the quarter, compared to analyst estimates of $6.45 billion. During the same quarter in the previous year, the company posted $0.84 earnings per share. Avnet’s revenue for the quarter was up 34.0% on a year-over-year basis. Avnet has set its Q4 2026 guidance at 1.700-1.800 EPS. Sell-side analysts anticipate that Avnet, Inc. will post 5.12 earnings per share for the current year.
Avnet Dividend Announcement The company also recently declared a quarterly dividend, which was paid on Wednesday, June 17th. Shareholders of record on Wednesday, June 3rd were issued a dividend of $0.35 per share. The ex-dividend date of this dividend was Wednesday, June 3rd. This represents a $1.40 annualized dividend and a yield of 1.6%. Avnet’s payout ratio is currently 54.47%.
Insider Buying and Selling at Avnet In other Avnet news, CEO Philip R. Gallagher sold 23,920 shares of the company’s stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $82.92, for a total value of $1,983,446.40. Following the completion of the transaction, the chief executive officer directly owned 145,003 shares in the company, valued at $12,023,648.76. This represents a 14.16% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 1.90% of the stock is currently owned by insiders.
Avnet Profile (Free Report)
Avnet, Inc (NASDAQ: AVT) is a global technology distributor and solutions provider specializing in the sourcing, design, and supply chain management of electronic components and embedded systems. The company offers a broad portfolio of semiconductors, interconnect, passive and electromechanical components, as well as embedded hardware and software, cloud solutions, and Internet of Things (IoT) services. Avnet’s offerings aim to support customers through every stage of the product lifecycle, from initial prototype and design to production and end-of-life management.
Founded in 1921 by Charles Avnet, the company has evolved from a regional radio parts supplier into a multinational enterprise.
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Key Takeaways AVT expanded operating margin for a third straight quarter despite lower gross margins from sales mix changes.AVT expects further margin gains from SG&A discipline, improving demand and stronger book-to-bill trends.Avnet targets higher margins in EC and Farnell while maintaining its niche against Arrow and TD SYNNEX. Avnet's (AVT - Free Report) profitability continued to improve in the third quarter of fiscal 2026, even as gross margins remained under pressure, highlighting the benefits of disciplined cost management and operating leverage. The company reported an adjusted operating margin of 3.1%, up 38 basis points (bps) sequentially, marking its third consecutive quarter of expansion. Operating income grew more than twice as fast as sales, reflecting stronger execution across the business.
However, Avnet’s gross margin declined 68 bps year over year to 10.4%, primarily due to a greater mix of lower-margin Asia sales and memory price pass-throughs. Management noted that approximately half of sequential sales growth and one-quarter of year-over-year sales growth came from higher memory prices.
The company's largest Electronic Components (EC) segment expanded its operating margin to 3.5% from 3.2% in the previous quarter, driven by improving business conditions in Europe. Management expects EC operating margins to reach its 4% near-term target within the next fiscal year. Meanwhile, Farnell's operating margin improved to 5.2%, its sixth consecutive quarter of expansion, with management targeting a return to double-digit margins by the second half of 2027.
Looking ahead, rising book-to-bill ratios, improving lead times, stronger demand creation activity and continued SG&A discipline should support further operating margin expansion, even if gross margin remains constrained by product and geographic mix. Alongside this, AVT should also monitor how competitors are adapting to market dynamics and stay ahead of any new advancements.
How Competitors Fare Against AvnetAvnet operates in a competitive technology distribution market where it competes with global component distributors as well as broader IT distributors, including Arrow Electronics (ARW - Free Report) and TD SYNNEX (SNX - Free Report) . However, Avnet benefits from the niche it has created for itself, which helps to protect its margins.
Arrow Electronics competes directly with Avnet in electronic component distribution, semiconductor supply, embedded computing and engineering services. Both Arrow Electronics and Avnet serve OEMs, industrial manufacturers, automotive suppliers, communications equipment vendors and data center customers.
Avnet comes into crossroads with TD SYNNEX in the broader AI infrastructure value chain. AVT plays its role much earlier in the technology value chain by supplying electronic components directly to equipment manufacturers, making the overlap minimal with TD SYNNEX. Given these dynamics, Avnet has little to worry right now.
AVT’s Price Performance, Valuation and EstimatesAvnet shares have soared 86.9% in the year-to-date period, outperforming the Zacks Electronics - Parts Distribution industry’s 60.2% growth.
Avnet YTD Performance Chart
Image Source: Zacks Investment Research
Despite this outperformance, AVT stock is trading at a price-to-sales multiple of 0.26X, which is below the P/S multiple of industry’s P/S multiple of 0.39X. The undervaluation is further substantiated by Zacks Value Score of B.
The Zacks Consensus Estimate for AVT’s fiscal 2026 earnings is pegged at $5.12, implying year-over-year growth of 49%. The estimate has remained unchanged for the past 60 days.
Image Source: Zacks Investment Research
AVT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
PHOENIX--(BUSINESS WIRE)-- #Avnet--Avnet to report fourth quarter and fiscal year 2026 earnings on August 5 and to hold annual shareholder meeting on November 20.
Earnings season is here, and the setup is unusual: expectations were already high before a single major report landed.
That matters because high expectations raise the bar for what counts as "good enough"—a company can beat last year's numbers and still disappoint the market if it doesn't beat this year's inflated bar.
Analysts raised their estimates heading into this season, a pattern that has historically preceded more volatility, not less, even when the underlying economy is strong.
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Marc Chaikin of Chaikin Analytics says this earnings season is likely to reward patience and selectivity over blanket optimism, and the early bank numbers show exactly why. That tension is already visible in the first results of the season: the banks.
Bank Earnings Beat, But the Real Driver Is Under the HoodBig bank earnings landed strong across the board.
Goldman Sachs NYSE: GS, JPMorgan Chase NYSE: JPM, Bank of America NYSE: BAC, Wells Fargo NYSE: WFC and Citigroup NYSE: C all topped estimates—and the Financial Select Sector SPDR Fund NYSEARCA: XLF hit a new high on the news.
But the headline beat isn't the full picture investors should weigh. A meaningful chunk of this quarter's bank profits came from shrinking loan-loss reserves rather than pure business growth, per Chaikin's analysis.
Banks set aside less money to cushion against potential defaults when the economy looks stable, and that reversal flows straight to the bottom line.
It's a real tailwind, but a one-time one, not a repeatable growth engine. For investors, that argues for treating bank stocks as a buy-the-dip opportunity rather than something to chase at current highs.
Big Tech Splits Into Winners and the RestNot every mega-cap name deserves the same treatment this earnings season, and lumping them together would be a mistake.
Among the six mega-cap technology companies highlighted by Chaikin—Microsoft NASDAQ: MSFT, Apple NASDAQ: AAPL, Amazon NASDAQ: AMZN, Alphabet NASDAQ: GOOGL, Oracle NYSE: ORCL, and Meta Platforms NASDAQ: META—only Apple and Meta currently carry a bullish Power Gauge ratings, meaning the others haven't cleared his fundamental and technical bar despite their size.
Investors weighing whether their own mega-cap holdings pass that same bar can run any stock through the Power Gauge directly.
Oracle Today
$126.48 +0.07 (+0.06%)
As of 07/17/2026 04:00 PM Eastern
52-Week Range$121.50▼
$345.72Dividend Yield1.58%
P/E Ratio21.69
Price Target$265.03
Oracle is the clearest case for caution.
The company has committed roughly $300 billion to build data-center capacity for OpenAI, a bet that looks shakier now that OpenAI has pushed its IPO timeline from 2026 into 2027 while holding out for a $1 trillion valuation. That's a meaningful read-through: Oracle's growth story is tied to a customer whose own path to public markets just got murkier.
Tesla NASDAQ: TSLA carries a similar caution flag, and NVIDIA NASDAQ: NVDA faces its own pattern worth watching: the stock has sold off after each of its last four earnings reports despite beating estimates every time.
For investors holding these names into earnings, that history provides a reason to expect volatility around the report itself, regardless of how the numbers come in.
The Chip Trade Looks Like the Opposite SetupIf mega-cap tech is a "good news might not be good enough" story, chip stocks one rung down are closer to "the bad news may already be priced in."
Micron Technology NASDAQ: MU, AMD NASDAQ: AMD, SanDisk NASDAQ: SNDK, Dell Technologies NYSE: DELL, and Hewlett Packard Enterprise NYSE: HPE have all pulled back 15% to 20% from recent highs, even after several have posted strong earnings results.
That combination—still-bullish fundamentals paired with an oversold chart—is what Chaikin points to as the more attractive setup heading into this earnings cycle. The distinction is that this isn't a bet on the next earnings report specifically, but a bet that a group already down double digits has more room to recover than room to fall further.
What Investors Should Watch With SpaceXSpaceX Today
$123.99 0.00 (0.00%)
As of 07/17/2026 04:00 PM Eastern
52-Week Range$122.12▼
$225.64Price Target$234.78
SpaceX NASDAQ: SPCX shares have continued sliding since the IPO, and the reason matters for anyone deciding whether to buy the dip.
The company's own prospectus reframed SpaceX as an AI business rather than purely a Starlink and launch operation, a repositioning that the market hasn't rewarded.
On top of that, standard post-IPO insider lockup periods typically run around six months, a stretch that historically has kept pressure on newly public stocks (Facebook's 2012 debut is a comparable case).
The practical takeaway: this isn't necessarily a broken company, but it may be a slow-moving stock for a while yet, and investors expecting a quick turnaround may be early.
The same caution extends to smaller space-adjacent stocks that rallied ahead of the IPO and have since given much of that back, since many still lack the earnings to justify a rebound on their own.
The Real Opportunity May Be Where Fewer People Are LookingAvnet Today
$85.65 0.00 (0.00%)
As of 07/17/2026 04:00 PM Eastern
52-Week Range$44.25▼
$95.26Dividend Yield1.63%
P/E Ratio33.33
Price Target$89.00
Here's the more counterintuitive takeaway: a great earnings report doesn't always help a stock the way investors assume.
In mega-cap names like NVIDIA, the good news is often already priced in, and index funds may be the only reliable buyers left, regardless of results.
Small and mid-cap stocks work differently. Because they're covered by fewer analysts, a strong quarter tends to attract new coverage and new buyers rather than getting absorbed immediately.
Chaikin points to Avnet NASDAQ: AVT as an example.
After posting strong results in April, the electronic components distributor climbed from roughly $77 to $94 over the following two months, the kind of sustained follow-through he says is more typical in the mid-cap space than at the mega-cap end.
A recent breakout in value-oriented S&P 500 stocks adds a broader tailwind to that thesis.
For investors willing to look past the most obvious names, this segment of the market may offer better risk-reward this earnings season than the names getting the most headlines.
This Earnings Season Rewards Patience, Not PanicThe risk this earnings season is real: high expectations, a market already near record highs, and a track record of sell-the-news reactions in the most-watched names. The upside is just as real, though.
A pullback in strong companies caught up in a broader "sell the news" reaction can become an entry point rather than a warning sign, particularly in beaten-down chip names and under-covered mid-caps trading well below their recent highs.
Should You Invest $1,000 in Avnet Right Now?Before you consider Avnet, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Avnet wasn't on the list.
While Avnet currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Avnet (AVT - Free Report) . AVT is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 10.47. This compares to its industry's average Forward P/E of 13.59. Over the past 52 weeks, AVT's Forward P/E has been as high as 16.75 and as low as 8.05, with a median of 10.50.
AVT is also sporting a PEG ratio of 0.36. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AVT's PEG compares to its industry's average PEG of 0.45. Over the last 12 months, AVT's PEG has been as high as 1.89 and as low as 0.35, with a median of 0.81.
Another notable valuation metric for AVT is its P/B ratio of 0.89. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.97. Over the past 12 months, AVT's P/B has been as high as 1.00 and as low as 0.71, with a median of 0.91.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AVT has a P/S ratio of 0.27. This compares to its industry's average P/S of 0.46.
Finally, investors will want to recognize that AVT has a P/CF ratio of 12.36. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 17.11. Over the past year, AVT's P/CF has been as high as 13.11 and as low as 7.28, with a median of 9.98.
Value investors will likely look at more than just these metrics, but the above data helps show that Avnet is likely undervalued currently. And when considering the strength of its earnings outlook, AVT sticks out as one of the market's strongest value stocks.
Key Takeaways Avnet's AI and data center exposure rose to 10-15% as fiscal third-quarter revenues grew 34%.AVT's IP&E business grew 25% as AI buildouts lifted demand for power, cooling and other components.Avnet sees near-term momentum supported by growing backlogs and book-to-bill ratios above parity. Avnet (AVT - Free Report) is benefiting from strong demand in AI infrastructure and networking markets. AI-related demand is becoming a larger part of AVT’s business. In the third quarter of fiscal 2026, management stated that the company’s direct exposure to AI and data center customers has increased from around 5-7% to nearly 10-15%.
Most of this business is tied to Asia, especially Taiwan, where demand from hyperscalers and server customers remains strong. The company is also benefiting from demand for components that support AI infrastructure. In the third quarter of fiscal 2026, the company reported revenues of $7.1 billion, up 34% year over year and 13% sequentially.
AI buildouts are increasing demand for products tied to power management, cooling systems, connectors, capacitors, resistors and sensors. This helped AVT’s interconnect, passive and electromechanical (IP&E) business grow 25% year over year in the quarter. Since AI accelerators require surrounding IP&E products, creating additional sales opportunities beyond semiconductors.
AVT expects current demand trends to continue in the near term. With growing backlog levels and book-to-bill ratios above parity across all regions, supported by rising lead times across several component categories as supply conditions tighten, AVT remains well-positioned to continue seeing strong business momentum in the near term.
Furthermore, Avnet delivered record sales of $6.67 billion in its Electronic Components business, which increased 34.7% year over year. Avnet is entering an upcycle with demand improving across data center and AI builds, industrial, networking and aerospace/defense, driving better sales execution and operating margin expansion.
How Competitors Fare Against Avnet StockAvnet operates in a competitive technology distribution market where it competes with global component distributors as well as broader IT distributors, including Arrow Electronics (ARW - Free Report) and CDW (CDW - Free Report) . However, the company has created a niche for itself, which helps to protect its margins.
Arrow Electronics competes head-to-head with Avnet in electronic component distribution, semiconductor supply, embedded computing and engineering services. Both Arrow Electronics and Avnet serve OEMs, industrial manufacturers, automotive suppliers, communications equipment vendors and data center customers. Avnet comes to a crossroads with CDW in the AI infrastructure value chain. Avnet plays its role much earlier in the technology value chain, making the overlap minimal with CDW.
AVT’s Price Performance, Valuation and EstimatesAvnet shares have soared 70.9% in the year-to-date period, outperforming the Zacks Electronics - Parts Distribution industry’s 55.9% growth.
AVT YTD Performance Chart
Image Source: Zacks Investment Research
Despite this outperformance, AVT stock is trading at a price-to-sales multiple of 0.25X, which is below the P/S multiple of industry’s P/S multiple of 0.38X. The undervaluation is further substantiated by Zacks Value Score of B.
AVT Forward 12-Month Valuation Chart
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AVT’s fiscal 2026 revenues is pegged at $25.59 billion, implying year-over-year growth of 15.2%. The estimate has remained unchanged for the past 30 days.
Image Source: Zacks Investment Research
AVT currently carries Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Here are three stocks with buy rank and strong income characteristics for investors to consider today, June 30:
Fomento Económico Mexicano, S.A.B. de C.V. (FMX - Free Report) : This beverage bottling company witnessed the Zacks Consensus Estimate for its current year earnings increasing 18.5% the last 60 days.
This Zacks Rank #1 company has a dividend yield of 1.9%, compared with the industry average of 0.0%.
Avnet, Inc. (AVT - Free Report) : This electronic components company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 10.8% the last 60 days.
This Zacks Rank #1 company has a dividend yield of 1.6%, compared with the industry average of 0.6%.
Barings BDC, Inc. (BBDC - Free Report) : This business development company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 3.1% in the last 60 days.
This Zacks Rank #1 company has a dividend yield of 12.6%, compared with the industry average of 12%.
See the full list of top ranked stocks here.
Find more top income stocks with some of our great premium screens.
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Avnet (AVT - Free Report) , a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Avnet currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if AVT is a promising momentum pick, let's examine some Momentum Style elements to see if this distributor of electronic components holds up.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For AVT, shares are up 4.35% over the past week while the Zacks Electronics - Parts Distribution industry is up 3.52% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 6.01% compares favorably with the industry's 2.95% performance as well.
While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Shares of Avnet have increased 44.25% over the past quarter, and have gained 76.27% in the last year. On the other hand, the S&P 500 has only moved 11.07% and 25.39%, respectively.
Investors should also take note of AVT's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now AVT is averaging 1,393,160 shares for the last 20 days..
Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with AVT.
Over the past two months, 3 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost AVT's consensus estimate, increasing from $4.62 to $5.12 in the past 60 days. Looking at the next fiscal year, 3 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineGiven these factors, it shouldn't be surprising that AVT is a #2 (Buy) stock and boasts a Momentum Score of B. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Avnet on your short list.
Key Takeaways AVT posted Q3 revenues of $7.1B, up 34% Y/Y, driven by data center, networking and industrial demand.Avnet's AI and data center exposure rose to 10-15%, led by hyperscaler demand in Taiwan.AVT expects Q4 revenues of $7.3-$7.6B as backlog growth and tight supply support growth momentum. Avnet Inc. (AVT - Free Report) is benefiting from strong demand in AI infrastructure, networking and industrial markets. In the third quarter of fiscal 2026, the company reported revenues of $7.1 billion, up 34% year over year and 13% sequentially. Management stated that AI data center, networking and industrial markets were the biggest growth drivers during the third quarter. The company also delivered record sales of $6.67 billion in its Electronic Components business, which increased 34.7% year over year on the back of robust demand across most end markets.
AI-related demand is becoming a larger part of AVT’s business. In the third quarter of fiscal 2026, management stated that the company’s direct exposure to AI and data center customers has increased from around 5-7% previously to nearly 10-15% now. Most of this business is tied to Asia, especially Taiwan, where demand from hyperscalers and server customers remains strong. Networking demand also improved across regions, with the Americas showing strong growth during the third quarter.
The company is also benefiting from demand for components that support AI infrastructure. AI buildouts are increasing demand for products tied to power management, cooling systems, connectors, capacitors, resistors and sensors. This helped AVT’s interconnect, passive and electromechanical (IP&E) business grow 25% year over year in the third quarter. The company noted that every AI accelerator requires surrounding IP&E products, creating additional sales opportunities beyond semiconductors.
AVT expects current demand trends to continue in the near term. With growing backlog levels and book-to-bill ratios above parity across all regions, supported by rising lead times across several component categories as supply conditions tighten, AVT remains well-positioned to continue seeing strong business momentum in the near term. For the fourth quarter of fiscal 2026, AVT expects revenues to be in the range of $7.3-$7.6 billion, implying approximately 5% sequential growth at the midpoint. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $7.46 billion, implying year-over-year growth of 32.8%.
How Competitors Fare Against AvnetAvnet faces stiff competition from other global technology solutions providers such as Arrow Electronics Inc. (ARW - Free Report) and TD SYNNEX (SNX - Free Report) .
Arrow Electronics is one of the world’s largest distributors of electronic components, which focuses on selling semiconductor products, IP&E components and IT hardware and software to original equipment manufacturers and electronics manufacturing services providers. Arrow Electronics is witnessing robust growth in its Global Components segment, through which the company deals in semiconductor products and related services. In the first quarter of 2026, Global Component sales increased 39% year over year on a reported basis and 35% on a constant currency basis to $6.64 billion.
TD SYNNEX is a leading global IT distributor and solutions aggregator, providing a comprehensive range of technology distribution, logistics and integration services. TD SYNNEX’s portfolio includes cloud computing, cybersecurity, AI, networking, data center infrastructure and consumer electronics. In the first quarter of fiscal 2026, TD SYNNEX’s Hyve division, which focuses on hyperscale infrastructure solutions, noted strong growth in gross billings, driven by surging demand for cloud data centers and AI-powered workloads.
AVT’s Price Performance, Valuation & EstimatesShares of AVT have surged 72.3% in the year-to-date period compared with the Zacks Electronics - Parts Distribution industry’s appreciation of 58%.
AVT YTD Price Return Performance
Image Source: Zacks Investment Research
In terms of forward price/sales, Avnet is trading at 0.25X compared with the industry’s 0.4X.
The Zacks Consensus Estimate for Avnet’s fiscal 2026 earnings is pegged at $4.92 per share, revised up by 30 cents over the past 30 days, marking a year-over-year increase of 43%.
Image Source: Zacks Investment Research
Avent currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Avnet (AVT - Free Report) , a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Avnet currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for AVT that show why this distributor of electronic components shows promise as a solid momentum pick.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For AVT, shares are up 2.2% over the past week while the Zacks Electronics - Parts Distribution industry is up 3.48% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 9.3% compares favorably with the industry's 15.21% performance as well.
While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Over the past quarter, shares of Avnet have risen 32.21%, and are up 72.79% in the last year. In comparison, the S&P 500 has only moved 7.85% and 30.1%, respectively.
Investors should also take note of AVT's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now AVT is averaging 1,366,360 shares for the last 20 days..
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with AVT.
Over the past two months, 3 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost AVT's consensus estimate, increasing from $4.62 to $5.12 in the past 60 days. Looking at the next fiscal year, 3 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that AVT is a #2 (Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Avnet on your short list.
Key Takeaways Earnings yield is calculated by dividing a company's EPS by its current stock price.A higher earnings yield indicates that a stock may be undervalued and could provide growth potential.LYB, NEXA, CVX, AVT and SHIP are a few solid high earnings yield value stocks. Tensions between the United States and Iran continue as both sides exchange military strikes. Iran’s Revolutionary Guard attacked a U.S. air base after American forces reportedly targeted Iranian drones and launch sites near the Strait of Hormuz. There is no clear sign of peace talks succeeding yet. U.S. President Trump said he is in no hurry to strike a deal and insisted Iran cannot simply wait for U.S. election pressure to weaken his stance. The White House also dismissed reports that the United States may ease restrictions on Iran in exchange for reopening the vital oil shipping route, signaling that both military and political tensions remain high.
Uncertainty around when a deal might be reached has kept central banks cautious, as policymakers assess whether higher energy prices could fuel inflation and require tighter monetary policy. In such an environment, value investing appears particularly prudent, as investors tend to favor fundamentally strong, reasonably valued companies that can better withstand economic and market volatility. This approach hinges on the idea that market prices often don’t fully reflect a company’s fundamentals, providing opportunities to benefit from market corrections in the long run.
LyondellBasell Industries (LYB - Free Report) , Nexa Resources S.A. (NEXA - Free Report) , Chevron Corp. (CVX - Free Report) , Seanergy Maritime Holdings Corp. (SHIP - Free Report) and Avnet, Inc. (AVT - Free Report) are a few solid high earnings yield picks for value investors.
Unlock Portfolio Value With Earnings YieldEarnings yield is calculated by dividing a company’s earnings per share (EPS) by its current stock price (Earnings Yield = EPS / Current Stock Price). This figure represents the profit generated for each dollar invested, effectively serving as the inverse of the price-to-earnings (P/E) ratio. A higher earnings yield typically indicates that a stock may be undervalued and could provide growth potential, while a lower earnings yield could suggest overvaluation.
Beyond identifying individual stocks, earnings yield also aids in comparing the stock market to fixed-income investments, like 10-year Treasury bonds. If the earnings yield of a market index surpasses the bond yield, it can indicate favorable conditions for investing in stocks over bonds, which is valuable for portfolio diversification.
The Winning StrategyWe have set an Earnings Yield greater than 10% as our primary screening criterion but it alone cannot be used for picking stocks that have the potential to generate solid returns. So, we have added the following parameters to the screen:
Estimated EPS growth for the next 12 months greater than or equal to the S&P 500: This metric compares the 12-month forward EPS estimate with the 12-month actual EPS.
Average Daily Volume (20 Day) greater than or equal to 100,000: High trading volume implies that a stock has adequate liquidity.
Current Price greater than or equal to $5.
Buy-Rated Stocks: Stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) have been known to outperform peers in any type of market environment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Our PicksHere we discuss five of the 38 stocks that qualified the screening:
LyondellBasell is among the world’s leading plastics, chemicals, and refining companies, serving a wide range of industries including electronics, automotive parts, packaging, construction materials, and biofuels.The Zacks Consensus Estimate for LYB’s 2026 sales and earnings implies year-over-year growth of 12% and 414%, respectively. EPS estimates for the current and next year have moved up by $3.29 and $2.19, respectively, over the past 30 days. LyondellBasell currently sports a Zacks Rank #1 and has a Value Score of B.
Nexa Resources is an integrated zinc producer, engaged in developing and operating mining and smelting assets, primarily in Latin America. The Zacks Consensus Estimate for NEXA’s 2026 sales and earnings implies year-over-year growth of 15% and 214%, respectively. EPS estimates for the current and next year have moved up by 87 cents and 37 cents, respectively, over the past 30 days. Nexa Resources currently carries a Zacks Rank #1 and has a Value Score of A.
Chevron is one of the world’s largest integrated energy companies, with operations spanning oil production, refining, and marketing across global markets. The Zacks Consensus Estimate for CVX’s 2026 sales and earnings implies year-over-year growth of 16% and 116%, respectively. EPS estimates for the current and next year have moved up by $2.19 and 80 cents, respectively, over the past 30 days. Chevron currently sports a Zacks Rank #1 and has a Value Score of B.
Seanergy Maritime is a global shipping firm focused on transporting dry bulk commodities by sea. The Zacks Consensus Estimate for SHIP’s 2026 sales and earnings implies year-over-year growth of 16% and 63%, respectively. EPS estimates for the current and next year have moved up by 13 cents and 10 cents, respectively, over the past 60 days. Seanergy Maritime currently sports a Zacks Rank #1 and has a Value Score of B.
Avnet is a leading global distributor of electronic components and computer products, serving OEMs, manufacturing services providers, design manufacturers, and value-added resellers. The Zacks Consensus Estimate for AVT’s fiscal 2026 sales and earnings implies year-over-year growth of 21% and 49%, respectively. EPS estimates for the current and next fiscal have moved up by 50 cents and 86 cents, respectively, over the past 30 days. Avnet currently carries a Zacks Rank #2 and has a Value Score of A.
It has been about a month since the last earnings report for Avnet (AVT - Free Report) . Shares have added about 5.6% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Avnet due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
Avnet's Q3 Earnings Beat Estimates on Record Components SalesAvnet reported better-than-expected third-quarter fiscal 2026 results. The company’s third-quarter adjusted earnings of $1.48 per share beat the Zacks Consensus Estimate by 11.28%. The bottom line surged 76.2% on a year-over-year basis.
Net sales increased 34% year over year to $7.12 billion and surpassed the consensus mark by 12.09%. The robust third-quarter performance was mainly driven by strength across served markets and record performance in the Electronic Components segment.
Avnet’s Segment Results Show Strength in Core DistributionIn the Electronic Components segment, sales increased 34.7% year over year to $6.67 billion, while operating income margin expanded 5 basis points (bps) to 3.5%. The quarter included record sales for Electronic Components, aided by growth across regions and demand creation activity.
Farnell revenues increased 24% year over year to $454.7 million, and operating income margin expanded 224 bps to 5.2%, marking continued progress in business recovery. Management stated that the ongoing investments in the e-commerce platform and customer experience will help improve the segment’s profitability.
Avnet Sees Broad-Based Demand Lift Across RegionsAVT’s year-over-year revenue growth reflected strength across geographies, led by Asia, where sales increased 39.3% to $3.46 billion and represented 49% of total company sales during the quarter. EMEA revenues climbed 31.3% to $2.05 billion, while the Americas posted a 26.7% increase to $1.62 billion.
Management linked the quarter’s momentum to improving market conditions across core end markets, including industrial, networking and data center, with demand improving across most verticals served. The company also noted lead times trending higher across many component categories, a backdrop that can influence customer ordering patterns.
Avnet’s Margins Improve Sequentially Despite Mix PressureAvnet reported a gross margin of 10.4% in the quarter, down 68 basis points year over year, which management attributed largely to sales mix, including a higher percentage of revenues coming from Asia and mix differences in Western regions.
Even with that pressure, profitability improved sequentially. Operating income margin expanded 19 bps to 2.9%, and adjusted operating income margin improved 23 bps to 3.1%, reflecting better operating leverage as volumes recovered, particularly in the West.
AVT Benefits From Pricing Tailwind Concentrated in MemoryA notable development in the quarter was the impact of higher component pricing, most prominently in memory. Management indicated that pricing increases contributed meaningfully to the sales trajectory, with roughly half of sequential sales growth and about one quarter of year-over-year sales growth tied to higher memory pricing.
Avnet emphasized that price increases generally pass through to customers, which can lift gross profit dollars without materially boosting gross margin percentage. It also flagged the potential for additional, smaller price increases across other technologies in the coming months.
Balance Sheet & Cash Flow of AvnetAs of March 28, 2026, AVT had cash and cash equivalents of $202.4 million compared with $286.5 million reported as of Dec. 27, 2025.
The long-term debt was $2.47 billion as of March 28, 2026, unchanged from the previous quarter. Gross debt leverage was 3.6X at the end of the third quarter, and management reiterated its goal to reduce leverage to roughly 3X by the end of 2026.
In the first three quarters of fiscal 2026, Avnet generated operating cash flow of $9.8 million. During the same period, it repurchased shares worth $138.3 million and paid $85.6 million in dividends.
Avnet’s Outlook Calls for Continued Sequential GrowthFor the fourth quarter of fiscal 2026, Avnet projects revenues in the range of $7.30-$7.60 billion, which implies approximately 5% sequential growth at the midpoint. The company anticipates adjusted earnings between $1.70 and $1.80 per share, assuming similar interest expense to the third quarter and an adjusted effective tax rate between 21% and 25%. The Zacks Consensus Estimate for fourth-quarter revenues and earnings is pegged at $6.11 billion and $1.46 per share, respectively.
Operationally, management described book-to-bill ratios as well above parity in all regions and noted backlog growth as customers respond to a tightening supply environment. The company said that its guidance assumes current market conditions persist, with Electronic Components sales growth expected across all regions.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.
The consensus estimate has shifted 20.73% due to these changes.
VGM ScoresAt this time, Avnet has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Avnet has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
On June 02, 2026, Avnet Inc AVT shares rose 6.8% to a current price of $92.93, marking a significant increase over the past month with a rise of 15.4%. Over the last year, AVT has experienced a remarkable year-to-date increase of 94.3%, peaking at $95.26 and reaching a low of $44.25 in the past 52 weeks.
GF Value™ verdict: Current price is $92.93, compared to GF Value™ of $61.85, indicating the stock is 50.3% overvalued.GF Score™: 86/100 (Strong), suggesting a solid performance across multiple metrics.Notable signal: Insiders sold $3.0M in the last 3 months, indicating a lack of buying interest. Is AVT Overvalued or Undervalued? Avnet Inc's current price of $92.93 significantly exceeds the GF Value™ estimate of $61.85, resulting in a 50.3% overvaluation. This discrepancy indicates a lack of margin of safety for potential investors, as the current valuation does not reflect the intrinsic value derived from the company's historical performance and growth prospects. The GF Valuation label identifies AVT as "Significantly Overvalued," which raises concerns about the sustainability of the current price level. Potential risks associated with investing in overvalued stocks include increased volatility and the possibility of price corrections in the future.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
How Does AVT's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 36.2x 9.4x (5-Year Median) Forward P/E 11.8x - Avnet's current P/E (TTM) of 36.2x is drastically above its 5-year median P/E of 9.4x, indicating that the stock is trading at a significantly higher valuation compared to its historical average. The forward P/E of 11.8x still suggests a premium compared to historical standards. This analysis aligns with the GF Value™ verdict, confirming that AVT is overvalued relative to its historical valuation metrics.
What Does AVT's GF Score™ Tell Us? Metric Rating GF Score™ 86 Financial Strength 6/10 Profitability 7/10 Growth 9/10 Valuation 5/10 Momentum 9/10 The GF Score™ of 86/100 indicates a strong overall rating, reflecting solid performance in various areas. The strongest aspect is Growth (9/10), suggesting that the company has robust growth prospects. However, the Valuation rank of 5/10 indicates that the stock's current valuation may not be favorable. Financial Strength (6/10) and Profitability (7/10) scores further emphasize that while AVT is performing well, there are areas of concern that investors should consider.
What Are Insiders Doing with AVT Stock? In the last three months, insiders have sold $3.0M worth of Avnet stock, with no purchases reported. This pattern of selling rather than buying may signal a lack of confidence among insiders regarding the company's future performance or valuation levels. Insider selling can often indicate that those closest to the company believe the stock is overvalued or that they are seeking to liquidate for personal financial reasons.
What This Means for Investors Based on the current analysis and the GF Value™ estimate, Avnet Inc AVT is considered overvalued. The significant discrepancy between the current share price and the GF Value™ suggests that potential investors may want to exercise caution or seek additional confirmation before proceeding.
For the complete analysis, visit the Avnet Inc AVT stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is AVT's GF Score™?
AVT's GF Score™ is 86/100, indicating a strong performance across key metrics that usually correlate with higher long-term returns.
Is AVT overvalued or undervalued?
AVT is considered overvalued, with a current price significantly exceeding the GF Value™ estimate, suggesting potential risks for investors.
What is AVT's P/E ratio?
AVT's current P/E (TTM) is 36.2x, which is considerably higher than its 5-year median P/E of 9.4x, indicating a substantial premium in its valuation compared to historical levels.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Whether you're a value, growth, or momentum investor, finding strong stocks becomes easier with the Zacks Style Scores, a top feature of the Zacks Premium research service.
Key Takeaways Low P/CF screen flags NEXA, AVT, STNE and USNA as value stocks amid market uncertainty.NEXA and AVT have sales/EPS growth forecasts, and shares rose 144.6% and 65.7% in a year.STNE and USNA also have sales/EPS growth forecasts, but shares fell 24% and 35.7% in a year. Value investing is considered one of the best practices when it comes to picking stocks at a time when the market is juggling with geopolitical tensions. It is essentially about selecting stocks that are fundamentally sound but have been beaten down by some external factors. Such stocks are poised to bounce back as and when investors recognize the inherent value of companies. The value investment strategy best suits investors with a long-term horizon.
Often trading below their intrinsic value, these stocks provide a margin of safety that is especially appealing during periods of market uncertainty. When evaluating value stocks, one of the most effective valuation metrics is the Price-to-Cash-Flow (P/CF) ratio.
Companies, such as Nexa Resources S.A. (NEXA - Free Report) , Avnet, Inc. (AVT - Free Report) , StoneCo Ltd. (STNE - Free Report) and USANA Health Sciences, Inc. (USNA - Free Report) , boast a low P/CF ratio. The P/CF ratio evaluates the market price of a stock relative to the amount of cash flow that the company is generating on a per-share basis — the lower the number, the better.
Price-to-Cash-Flow metric evaluates the market price of a stock relative to the amount of cash flow that the company is generating on a per-share basis — the lower the number, the better. One of the important factors that makes P/CF a highly dependable metric is that operating cash flow adds back non-cash charges such as depreciation and amortization to net income, truly diagnosing a company's financial health.
Analysts caution that a company’s earnings are subject to accounting estimates and management manipulation. However, cash flow is reliable. Net cash flow unveils how much money a company is actually generating and how effectively management is deploying the same.
Positive cash flow indicates an increase in a company’s liquid assets. It gives the company the means to settle debt, meet its expenses, reinvest in its business, endure downturns and finally pay back its shareholders. Negative cash flow implies a decline in the company’s liquidity, which in turn lowers its flexibility to support these moves.
What’s the Best Value Investing Strategy?An investment decision based solely on the P/CF metric may not yield the desired results. To identify stocks that are trading at a discount, you should expand your search criteria and also consider the price-to-book ratio, price-to-earnings ratio, and price-to-sales ratio. Adding a favorable Zacks Rank and a Value Score of A or B to your search criteria should lead to even better results as these eliminate the chance of falling into a value trap.
Here are the parameters for selecting true-value stocks:
P/CF less than or equal to X-Industry Median.
Price greater than or equal to 5: The stocks must all be trading at a minimum of $5 or higher.
Average 20-Day Volume greater than 100,000: A substantial trading volume ensures that the stock is easily tradable.
P/E using (F1) less than or equal to X-Industry Median: This parameter shortlists stocks that are trading at a discount or are equal to their peers.
P/B less than or equal to X-Industry Median: A lower P/B compared with the industry average implies that there is enough room for the stock to gain.
P/S less than or equal to X-Industry Median: The P/S ratio determines how a stock price compares to the company’s sales — the lower the ratio, the more attractive the stock is.
PEG less than 1: The ratio is used to determine a stock's value by taking the company's earnings growth into account. The PEG ratio gives a more complete picture than the P/E ratio. A value of less than 1 indicates that the stock is undervalued and that investors need to pay less for a stock that has robust earnings growth prospects.
Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.
Value Score of less than or equal to B: Our research shows that stocks with a Style Score of A or B, when combined with Zacks Rank #1 or 2, offer the best upside potential.
Here are four of the 11 value stocks that qualified the screening:
Nexa Resources, a large-scale, low-cost, integrated polymetallic producer, sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 59.9%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Nexa Resources’ current financial-year sales and EPS implies growth of 14.6% and 214.1%, respectively, from the year-ago period. NEXA has a Value Score of A. Shares of NEXA have soared 144.6% over the past year.
Avnet, a leading global technology distributor and solutions provider, carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 9.5%, on average.
The Zacks Consensus Estimate for Avnet’s current financial-year sales and EPS indicates growth of 20.7% and 48.8%, respectively, from the year-ago period. AVT has a Value Score of B. Shares of AVT have surged 65.7% over the past year.
Stone, a leading provider of financial technology solutions, carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 3.1%, on average.
The Zacks Consensus Estimate for Stone’s current financial-year sales and EPS indicates growth of 10.3% and 42.6%, respectively, from the year-ago period. STNE has a Value Score of A. Shares of STNE have fallen 24% over the past year.
USANA Health, which develops and manufactures high-quality nutritional supplements, functional foods and personal care products, carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 30.5%, on average.
The Zacks Consensus Estimate for USANA Health’s current financial-year sales and EPS calls for growth of 2.1% and 9.8%, respectively, from the year-ago period. USNA has a Value Score of A. Shares of USNA have declined 35.7% over the past year.
