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 up 0.2%. By the end of trading, Avnet fell 43 cents (-1.2%) to $36.43 on light volume. Throughout the day, 723,906 shares of Avnet exchanged hands as compared to its average daily volume of one million shares. The stock ranged in price between $36.24-$36.84 after having opened the day at $36.68 as compared to the previous trading day's close of $36.86. Other companies within the Wholesale industry that declined today were: Empire Resources Incorporated ( ERS), down 8.6%, Navarre Corporation ( NAVR), down 7%, Edgen Group Inc Class A ( EDG), down 6.6%, and Wayside Technology Group ( WSTG), down 4.6%.
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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 $4.95 billion and is part of the services sector. The company has a P/E ratio of 10, below the S&P 500 P/E ratio of 17.7. Shares are up 20.4% 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 revenue growth, attractive valuation levels, 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 shows low profit margins.

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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