Avnet (AVT – Free Report) shares rallied 11.8% in the last trading session to close at $46.41. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock’s 13.5% loss over the past four weeks.
The upswing was likely driven by a broader market rally following US President Donald Trump’s announcement of pausing the reciprocal tariffs for 90 days. However, a baseline tariff of 10% on imports would continue to apply.
This distributor of electronic components is expected to post quarterly earnings of $0.72 per share in its upcoming report, which represents a year-over-year change of -34.6%. Revenues are expected to be $5.29 billion, down 6.4% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Avnet, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock’s price usually doesn’t keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on AVT going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>
Avnet is a member of the Zacks Electronics – Parts Distribution industry. One other stock in the same industry, Wesco International (WCC – Free Report) , finished the last trading session 15.8% higher at $153.86. WCC has returned -16% over the past month.
For Wesco International
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