Key Highlights from Episode #442 of the Value Investor Podcast
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 33 minutes ago
0mins
Source: NASDAQ.COM
- Classic Value Stock Screening: Zacks' classic value stock screen returned 11 stocks this week amidst a soaring market, indicating strong demand and confidence among value investors, particularly driven by a turnaround in energy earnings.
- Avnet's Strong Performance: Avnet's stock has surged 80% year-to-date, with earnings expected to grow by 48.8% this year and 42.6% next year, trading at a forward P/E of just 17 while offering a 1.6% dividend yield, highlighting its potential as a classic value stock.
- Nexa Resources' Robust Growth: Nexa Resources saw a 42% increase in net revenue in Q1 2026, driven by rising silver prices, with earnings projected to soar by 214% in 2026, trading at a forward P/E of 5.6, showcasing its deep value characteristics.
- Dow's Turnaround: Dow is expected to see a 352% increase in earnings in 2026, with a forward P/E of 14.7, despite a 38% year-to-date rise, it has fallen 13% in the last month, indicating its potential as a deep value stock amidst market volatility.
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Analyst Views on AVT
Wall Street analysts forecast AVT stock price to fall
3 Analyst Rating
0 Buy
1 Hold
2 Sell
Moderate Sell
Current: 87.120
Low
48.00
Averages
56.00
High
65.00
Current: 87.120
Low
48.00
Averages
56.00
High
65.00
About AVT
Avnet, Inc. is a global electronic component technology distributor and solutions provider. It markets, sells, and distributes electronic components from electronic component manufacturers, including semiconductors, interconnect, passive and electromechanical components, and other integrated and embedded components. Its primary operating groups include Electronic Components (EC) and Farnell. EC serves a variety of markets ranging from industrial to automotive to defense and aerospace. EC offers an array of customer support options throughout the entire product lifecycle, including turnkey and customized design, supply chain, programming, logistics and post-sales services. The Farnell operating group primarily supports lower-volume customers and distributes a portfolio of kits, tools, electronic components, industrial automation components, and test and measurement products to both engineers and entrepreneurs, through an e-commerce channel. It also distributes new product introductions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Key Highlights from Episode #442 of the Value Investor Podcast
- Classic Value Stock Screening: Zacks' classic value stock screen returned 11 stocks this week amidst a soaring market, indicating strong demand and confidence among value investors, particularly driven by a turnaround in energy earnings.
- Avnet's Strong Performance: Avnet's stock has surged 80% year-to-date, with earnings expected to grow by 48.8% this year and 42.6% next year, trading at a forward P/E of just 17 while offering a 1.6% dividend yield, highlighting its potential as a classic value stock.
- Nexa Resources' Robust Growth: Nexa Resources saw a 42% increase in net revenue in Q1 2026, driven by rising silver prices, with earnings projected to soar by 214% in 2026, trading at a forward P/E of 5.6, showcasing its deep value characteristics.
- Dow's Turnaround: Dow is expected to see a 352% increase in earnings in 2026, with a forward P/E of 14.7, despite a 38% year-to-date rise, it has fallen 13% in the last month, indicating its potential as a deep value stock amidst market volatility.
See More
Stocks Surge as Market Sentiment Improves Amid Falling Yields
- Market Sentiment Boost: The Dow Jones Industrial Average surged over 300 points, briefly exceeding 50,700, reflecting improved market sentiment that drove multiple stocks higher, indicating increased investor confidence in economic recovery.
- Rising Demand for Business Services: With falling Treasury yields reducing financing costs for mid-sized clients, companies like Insperity and Avnet are seeing faster contract approvals, which is expected to drive revenue growth over the coming quarters.
- Geopolitical Risk Easing: Progress on the Iran peace deal has removed significant geopolitical overhangs, encouraging corporations to release project backlogs that had been paused due to conflict, further boosting revenue recognition for business services firms.
- Strong Performance of Viasat: Viasat's stock rose by 3.9%, and it has increased by 97.3% year-to-date, nearing its 52-week high, reflecting market optimism about its future growth despite volatility and macroeconomic challenges.
See More
Avnet Declares $0.35 Quarterly Dividend, Consistent Yield
- Dividend Consistency: Avnet has declared a quarterly dividend of $0.35 per share, maintaining consistency with previous quarters, which reflects the company's stable profitability and cash flow management, likely boosting investor confidence.
- Yield Performance: The forward yield of 1.65% offers relative attractiveness in the current market environment, potentially drawing in investors seeking stable returns and enhancing the stock's appeal.
- Shareholder Return Plan: The dividend will be payable on June 17, with a record date of June 3 and an ex-dividend date also on June 3, ensuring timely returns for shareholders and demonstrating the company's commitment to shareholder interests.
- Future Outlook: Avnet forecasts Q4 sales between $7.3 billion and $7.6 billion, with expected EPS of $1.70 to $1.80, indicating the company's ability to maintain growth potential even amid tightening market demand, which strengthens investor confidence in future performance.
See More
Avnet Announces Quarterly Cash Dividend
- Quarterly Cash Dividend: Avnet's Board of Directors has approved a regular quarterly cash dividend of $0.35 per share, scheduled for payment on June 17, 2026, aimed at rewarding shareholders and enhancing investor confidence.
- Shareholder Record Date: The dividend will be paid to shareholders on record as of the close of business on June 3, 2026, ensuring eligible shareholders receive their earnings promptly, thereby strengthening the company's relationship with investors.
- Company Background: As a leading global technology distributor, Avnet has served customers' evolving needs for over a century, supporting customers and suppliers at every stage of the product lifecycle through regional and specialized businesses worldwide.
- Market Positioning: Avnet's unique viewpoint from the center of the technology supply chain positions it as a trusted partner that helps customers solve complex design and supply chain issues, thereby accelerating product development and revenue realization.
See More
Profitable Companies Aren't Always Built to Last
- Fiverr's Challenges: Fiverr's GAAP operating margin stands at 2.9%, with active buyers declining by an average of 12.3%, leading to difficulties in new customer acquisition, and projected sales are expected to drop by 7.2% over the next 12 months, indicating significant pressure on its business model.
- Avnet's Stagnation: Avnet's GAAP operating margin is 2.8%, and its sales have stagnated over the past two years, with earnings per share declining by 17.7% annually, highlighting weakened profitability and an urgent need for new growth strategies to tackle market challenges.
- Brady's Strong Performance: Brady boasts a GAAP operating margin of 17.4%, with an 8.3% annual revenue growth over the past two years, and projected revenue growth of 12.7% for the next 12 months indicates strong demand for its products, while share buybacks have propelled earnings per share growth to 16.5%.
- Market Dynamics Analysis: While Fiverr and Avnet face significant challenges, Brady demonstrates robust growth potential, suggesting that investors should exercise caution and focus on companies with sustainable growth capabilities in the current market environment.
See More
BofA Upgrades Avnet to Neutral with Price Target Raised to $96
- Rating Upgrade: BofA upgraded shares of electronic component distributor Avnet (AVT) from Underperform to Neutral and raised the price target from $66 to $96, reflecting increased confidence in the company's future performance.
- Stock Price Reaction: Avnet's shares rose about 3% on Wednesday, indicating a positive market response to the upgrade and suggesting investor optimism regarding the company's outlook.
- Improving Market Indicators: Analysts noted that multiple cycle indicators have turned constructive, particularly with backlog extending further, book-to-bill ratios exceeding 1 across all regions, and over 50% of tracked categories showing lead time extensions, signaling strong demand.
- Healthy Inventory Position: Avnet's inventory has normalized to 77 days, indicating that the company enters the upcycle with a cleaner balance sheet than in previous cycles, although analysts remain cautious about the potential impact of pull-forward demand in the second half of C26 and C27.
See More
Key Highlights from Episode #442 of the Value Investor Podcast
- Classic Value Stock Screening: Zacks' classic value stock screen returned 11 stocks this week amidst a soaring market, indicating strong demand and confidence among value investors, particularly driven by a turnaround in energy earnings.
- Avnet's Strong Performance: Avnet's stock has surged 80% year-to-date, with earnings expected to grow by 48.8% this year and 42.6% next year, trading at a forward P/E of just 17 while offering a 1.6% dividend yield, highlighting its potential as a classic value stock.
- Nexa Resources' Robust Growth: Nexa Resources saw a 42% increase in net revenue in Q1 2026, driven by rising silver prices, with earnings projected to soar by 214% in 2026, trading at a forward P/E of 5.6, showcasing its deep value characteristics.
- Dow's Turnaround: Dow is expected to see a 352% increase in earnings in 2026, with a forward P/E of 14.7, despite a 38% year-to-date rise, it has fallen 13% in the last month, indicating its potential as a deep value stock amidst market volatility.
See More
Stocks Surge as Market Sentiment Improves Amid Falling Yields
- Market Sentiment Boost: The Dow Jones Industrial Average surged over 300 points, briefly exceeding 50,700, reflecting improved market sentiment that drove multiple stocks higher, indicating increased investor confidence in economic recovery.
- Rising Demand for Business Services: With falling Treasury yields reducing financing costs for mid-sized clients, companies like Insperity and Avnet are seeing faster contract approvals, which is expected to drive revenue growth over the coming quarters.
- Geopolitical Risk Easing: Progress on the Iran peace deal has removed significant geopolitical overhangs, encouraging corporations to release project backlogs that had been paused due to conflict, further boosting revenue recognition for business services firms.
- Strong Performance of Viasat: Viasat's stock rose by 3.9%, and it has increased by 97.3% year-to-date, nearing its 52-week high, reflecting market optimism about its future growth despite volatility and macroeconomic challenges.
See More
Avnet Declares $0.35 Quarterly Dividend, Consistent Yield
- Dividend Consistency: Avnet has declared a quarterly dividend of $0.35 per share, maintaining consistency with previous quarters, which reflects the company's stable profitability and cash flow management, likely boosting investor confidence.
- Yield Performance: The forward yield of 1.65% offers relative attractiveness in the current market environment, potentially drawing in investors seeking stable returns and enhancing the stock's appeal.
- Shareholder Return Plan: The dividend will be payable on June 17, with a record date of June 3 and an ex-dividend date also on June 3, ensuring timely returns for shareholders and demonstrating the company's commitment to shareholder interests.
- Future Outlook: Avnet forecasts Q4 sales between $7.3 billion and $7.6 billion, with expected EPS of $1.70 to $1.80, indicating the company's ability to maintain growth potential even amid tightening market demand, which strengthens investor confidence in future performance.
See More
Avnet Announces Quarterly Cash Dividend
- Quarterly Cash Dividend: Avnet's Board of Directors has approved a regular quarterly cash dividend of $0.35 per share, scheduled for payment on June 17, 2026, aimed at rewarding shareholders and enhancing investor confidence.
- Shareholder Record Date: The dividend will be paid to shareholders on record as of the close of business on June 3, 2026, ensuring eligible shareholders receive their earnings promptly, thereby strengthening the company's relationship with investors.
- Company Background: As a leading global technology distributor, Avnet has served customers' evolving needs for over a century, supporting customers and suppliers at every stage of the product lifecycle through regional and specialized businesses worldwide.
- Market Positioning: Avnet's unique viewpoint from the center of the technology supply chain positions it as a trusted partner that helps customers solve complex design and supply chain issues, thereby accelerating product development and revenue realization.
See More
Profitable Companies Aren't Always Built to Last
- Fiverr's Challenges: Fiverr's GAAP operating margin stands at 2.9%, with active buyers declining by an average of 12.3%, leading to difficulties in new customer acquisition, and projected sales are expected to drop by 7.2% over the next 12 months, indicating significant pressure on its business model.
- Avnet's Stagnation: Avnet's GAAP operating margin is 2.8%, and its sales have stagnated over the past two years, with earnings per share declining by 17.7% annually, highlighting weakened profitability and an urgent need for new growth strategies to tackle market challenges.
- Brady's Strong Performance: Brady boasts a GAAP operating margin of 17.4%, with an 8.3% annual revenue growth over the past two years, and projected revenue growth of 12.7% for the next 12 months indicates strong demand for its products, while share buybacks have propelled earnings per share growth to 16.5%.
- Market Dynamics Analysis: While Fiverr and Avnet face significant challenges, Brady demonstrates robust growth potential, suggesting that investors should exercise caution and focus on companies with sustainable growth capabilities in the current market environment.
See More
BofA Upgrades Avnet to Neutral with Price Target Raised to $96
- Rating Upgrade: BofA upgraded shares of electronic component distributor Avnet (AVT) from Underperform to Neutral and raised the price target from $66 to $96, reflecting increased confidence in the company's future performance.
- Stock Price Reaction: Avnet's shares rose about 3% on Wednesday, indicating a positive market response to the upgrade and suggesting investor optimism regarding the company's outlook.
- Improving Market Indicators: Analysts noted that multiple cycle indicators have turned constructive, particularly with backlog extending further, book-to-bill ratios exceeding 1 across all regions, and over 50% of tracked categories showing lead time extensions, signaling strong demand.
- Healthy Inventory Position: Avnet's inventory has normalized to 77 days, indicating that the company enters the upcycle with a cleaner balance sheet than in previous cycles, although analysts remain cautious about the potential impact of pull-forward demand in the second half of C26 and C27.
See More
