AVT

With core inflation rising to 2.6% in September and the Federal Reserve signaling more rate hikes ahead, investors are turning to value stocks with strong earnings yields. Five stocks—Honda, Micron, Avnet, Delek US Holdings, and Plains GP—are highlighted as value picks with earnings yields above 10%, strong EPS growth projections, and upward earnings estimate revisions.

Avnet (AVT) delivered robust fiscal Q4 2026 results with sales surging 47.7% to $8.3 billion and adjusted operating margin expanding to 3.8%. The company forecasts Q1 FY2027 sales of $9-$9.3 billion with adjusted EPS of $2.80-$2.90, representing 241% year-over-year earnings growth. AVT stock has outperformed its industry significantly while trading at a valuation discount.

Avnet (AVT) achieved record IP&E sales in fiscal Q4 2026 with full-year revenues approaching $5 billion and forecasts 10% sequential growth for Q1 fiscal 2027. Despite an 88.5% one-year stock surge, AVT trades below industry valuation multiples at 0.23X P/S versus 0.37X industry average, earning a Zacks Rank #1 Strong Buy rating. The company benefits from AI infrastructure demand, expanding margins, and strong performance across all end markets.