Avnet Inc (AVT): Today's Featured Wholesale Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Avnet ( AVT) pushed the Wholesale industry higher today making it today's featured wholesale winner. The industry as a whole closed the day up 0.8%. By the end of trading, Avnet rose 78 cents (2.6%) to $30.16 on average volume. Throughout the day, 994,182 shares of Avnet exchanged hands as compared to its average daily volume of 1.3 million shares. The stock ranged in a price between $29.37-$30.21 after having opened the day at $29.37 as compared to the previous trading day's close of $29.38. Other companies within the Wholesale industry that increased today were: Lawson Products ( LAWS), up 7.7%, Longwei Petroleum Investment Holding Limite ( LPH), up 7.2%, Staar Surgical ( STAA), up 6.3%, and Grupo Casa Saba S.A.B. de C.V ( SAB), up 5.7%.
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Avnet, Inc., together with its subsidiaries, distributes electronic components, enterprise computer and storage products, and embedded subsystems in the Americas, Europe, the Middle East, Africa, Asia, Australia, and New Zealand. Avnet has a market cap of $4.07 billion and is part of the services sector. The company has a P/E ratio of 8.3, below the S&P 500 P/E ratio of 17.7. Shares are down 4.7% year to date as of the close of trading on Friday. Currently there are seven analysts that rate Avnet a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Avnet as a buy. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

On the negative front, Senomyx ( SNMX), down 5%, Universal Power Group ( UPG), down 4.4%, Hudson Technology ( HDSN), down 4.3%, and InfoSonics Corporation ( IFON), down 3.7%, were all laggards within the wholesale industry with Cardinal Health ( CAH) being today's wholesale industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the wholesale industry could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the wholesale industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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