Avnet Inc (AVT): Today's Featured Services 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 Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day up 0.8%. By the end of trading, Avnet fell $0.39 (-1.2%) to $31.54 on average volume. Throughout the day, 1,389,608 shares of Avnet exchanged hands as compared to its average daily volume of 945,000 shares. The stock ranged in price between $31.23-$32.13 after having opened the day at $32.13 as compared to the previous trading day's close of $31.93. Other companies within the Services sector that declined today were: Excel Maritime Carriers ( EXM), down 44.9%, Acacia Research Coroporation ( ACTG), down 27.3%, Bluefly ( BFLY), down 18.2% and PRGX Global ( PRGX), down 16.0%.
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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 $4.5 billion and is part of the wholesale industry. The company has a P/E ratio of 9.0, below the S&P 500 P/E ratio of 17.7. Shares are up 4.3% year to date as of the close of trading on Thursday.

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 and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Destination XL Group ( DXLG), down 24.8%, Casual Male Retail Group ( CMRG), down 24.8%, CIBT Education Group ( MBA), down 21.4% and Overstock.com ( OSTK), down 19.3% , were all gainers within the services sector with Target ( TGT) being today's featured services sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).

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