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

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 lower today making it today's featured Wholesale laggard. The industry as a whole closed the day down 1%. By the end of trading, Avnet fell 32 cents (-1.1%) to $28.05 on average volume. Throughout the day, 1.1 million shares of Avnet exchanged hands as compared to its average daily volume of 1.3 million shares. The stock ranged in price between $27.78-$28.37 after having opened the day at $28.37 as compared to the previous trading day's close of $28.37. Other companies within the Wholesale industry that declined today were: Grupo Casa Saba S.A.B. de C.V ( SAB), down 59.1%, China Auto Logistics ( CALI), down 21.4%, China Armco Metals ( CNAM), down 7%, and China Metro-Rural Holdings ( CNR), down 4.3%.
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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 $3.93 billion and is part of the services sector. The company has a P/E ratio of eight, below the S&P 500 P/E ratio of 17.7. Shares are down 7.9% year to date as of the close of trading on Thursday. 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 and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

On the positive front, InfoSonics Corporation ( IFON), up 6.6%, Tessco Technologies ( TESS), up 5.4%, Staar Surgical ( STAA), up 4.7%, and Core-Mark Holding Company ( CORE), up 2.5%, were all gainers within the wholesale industry with Wesco International ( WCC) being today's featured wholesale industry leader.

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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