Trade-Ideas: Avnet (AVT) Is Today's New Lifetime High Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Avnet ( AVT) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Avnet as such a stock due to the following factors:

  • AVT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $49.0 million.
  • AVT has traded 8,609 shares today.
  • AVT is trading at a new lifetime high.

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More details on AVT:

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. The stock currently has a dividend yield of 1.4%. AVT has a PE ratio of 13.5. Currently there are 5 analysts that rate Avnet a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Avnet has been 888,700 shares per day over the past 30 days. Avnet has a market cap of $6.3 billion and is part of the services sector and wholesale industry. The stock has a beta of 1.41 and a short float of 1.6% with 2.01 days to cover. Shares are up 5.5% year-to-date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Avnet as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, 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 has had sub par growth in net income.

Highlights from the ratings report include:
  • AVT's revenue growth has slightly outpaced the industry average of 1.8%. Since the same quarter one year prior, revenues rose by 10.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Compared to its closing price of one year ago, AVT's share price has jumped by 26.92%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, AVT should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • AVNET INC's earnings per share declined by 10.1% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, AVNET INC reported lower earnings of $3.22 versus $3.79 in the prior year. This year, the market expects an improvement in earnings ($4.34 versus $3.22).
  • Despite currently having a low debt-to-equity ratio of 0.47, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.19 is sturdy.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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