Keep Avnet (AVT) On Your Radar as Tech Rebounds - Cramer
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Avnet (NYSE: AVT) shares are ripping higher today, up nearly 10 percent in the late trading session.
The move might be from a muted reaction to its fourth-quarter earnings beat yesterday morning, but it might also be from dovish comments by CEO Rick Hamada.
Hamada, speaking with Jim Cramer yesterday, said the company's cautious outlook doesn't come from any foreseen disruptions, but rather waiting to see what global economic growth will shape up to be moving forward.
Drivers to Avent's business, Hamada commented, include data centers, servers, storage, and software. Further, although Hamada sees Apple (Nasdaq: AAPL) as a leader, there is a lot of computing and tech outside of their realm, which is where Avnet's 100,000 other clients come into play.
Avnet also announced a $500 million buyback with its earnings report yesterday, a move aimed at returning more value to customers. Hamada said Avnet will be selective in buying back shares, using a formula which will bring the most value to long-term investors.
Though Cramer is still cautious on tech companies, he thinks Avnet is one to keep on your radar as things begin to shape up.
Avnet is up 10.3 font into the close.
The move might be from a muted reaction to its fourth-quarter earnings beat yesterday morning, but it might also be from dovish comments by CEO Rick Hamada.
Hamada, speaking with Jim Cramer yesterday, said the company's cautious outlook doesn't come from any foreseen disruptions, but rather waiting to see what global economic growth will shape up to be moving forward.
Drivers to Avent's business, Hamada commented, include data centers, servers, storage, and software. Further, although Hamada sees Apple (Nasdaq: AAPL) as a leader, there is a lot of computing and tech outside of their realm, which is where Avnet's 100,000 other clients come into play.
Avnet also announced a $500 million buyback with its earnings report yesterday, a move aimed at returning more value to customers. Hamada said Avnet will be selective in buying back shares, using a formula which will bring the most value to long-term investors.
Though Cramer is still cautious on tech companies, he thinks Avnet is one to keep on your radar as things begin to shape up.
Avnet is up 10.3 font into the close.
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