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 0.4%. By the end of trading, Avnet fell $1.19 (-3.6%) to $31.87 on average volume. Throughout the day, 1,062,755 shares of Avnet exchanged hands as compared to its average daily volume of 913,200 shares. The stock ranged in price between $31.73-$32.91 after having opened the day at $32.73 as compared to the previous trading day's close of $33.06. Other companies within the Wholesale industry that declined today were: Shengkai Innovations ( VALV), down 5.6%, Ingram Micro ( IM), down 4.8%, Universal Power Group ( UPG), down 4.4% and InfoSonics Corporation ( IFON), down 3.5%.
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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 services sector. The company has a P/E ratio of 9.2, below the S&P 500 P/E ratio of 17.7. Shares are up 8.0% 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, China Auto Logistics ( CALI), down 11.5%, Coast Distribution System ( CRV), down 5.7%, Bluelinx Holdings ( BXC), down 5.6% and Peerless Systems Corporation ( PRLS), down 2.1%.

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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