Avnet, Inc. (AVT) Buy or Sell Stock Guide

Last updated: Sep 23, '17

The analysis below may be helpful to you if you have any of the following questions about AVT stock:

  • Is AVT a buy or a sell?
  • Should I sell or hold AVT stock today?
  • Is AVT a good buy / a good investment?
  • What are AVT analyst opinions, recommendations, ratings?

Here are AVT stock buy reasons/signals:

1. Avnet’s expansion into earlier stages of its customers’ design-chain should enable the firm to expand its value-added services offerings.

2. Avnet’s focus on smaller-sized customers should support demand for its value-added services.

3. Secular trends such as electronification should support demand for Avnet’s electronic components.

4. AVT quarterly revenue growth was 16.10%, higher than the industry and sector average revenue growth (4.62% and 8.57%, respectively).

5. AVT forward dividend yield is 1.96%, higher than the industry (0.62%) and sector (1.21%) forward dividend yields.

6. AVT forward P/E ratio is 9.88, and it’s low compared to its industry peers’ P/E ratios.

7. AVT Price/Book ratio is 0.88, and it’s low compared to its industry peers’ P/B ratios.

8. AVT Price/Sales ratio is 0.26, and it’s low compared to its industry peers’ P/S ratios.

9. AVT PEG ratio (P/E adjusted for growth) is 1.32, and it’s low compared to its industry peers’ PEG ratios.

Here are AVT stock sell reasons/signals:

1. Broadline distributors are slowly expanding into value-added services such as supply-chain management, resulting in increased competition.

2. Avnet’s exposure to cyclical markets makes it revenue and margins susceptible to economic downturns.

3. Any unfavorable currency fluctuations and an uncertain macroeconomic environment could impact growth as a majority of Avnet’s sales come from overseas.

4. AVT profitability is declining. The YoY profit margin change was -0.01pp.

5. AVT short interest (days to cover the shorts) ratio is 4.65. The stock garners more short interest than the average industry, sector or S&P 500 stock.

What are your thoughts on AVT?

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