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.
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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.
