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Chicago, IL – November 14, 2025 – Zacks Equity Research shares Astronics ATRO as the Bull of the Day and Avnet AVT as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Target Corp. TGT, Walmart Inc. WMT and Best Buy Co., Inc. BBY.
Here is a synopsis of all five stocks:
Astronics is a Zacks Rank #1 (Strong Buy) that has a D for Value and an A for Growth. This company makes lighting and electronics for cockpits, cabins and exteriors of military, commercial and private aircraft. The company recently reported a beat of the Zacks Consensus Estimate and looks to be heading back to recent highs. Let's learn more about why this stock is the Bull of the Day.
Astronics Corp. engages in the provision of electrical power generation and distribution systems. It includes motion systems, lighting and safety systems, avionics products, aircraft structures, systems certification, and automated test systems. It operates through the Aerospace and Test Systems segments. The Aerospace segment designs and manufactures products for the global aerospace industry. The Test Systems segment designs, develops, manufactures and maintains communications and weapons test systems and training and simulation devices for military applications.
The firm's products and solutions include Aircraft Data Systems, Aircraft Electrical Power Systems, Airfield Lighting, Custom Design & Manufacturing, Emergency Systems, Enhanced Vision Systems, IFC Antennas and Radome Systems, Inflight Entertainment System Hardware, Interiors & Structures, Lighting Systems, Seat Actuation Systems, Simulation & Training, Systems Certification, Test & Measurement and VIP IFEC & CMS Systems. The company was founded on December 5th, 1968 and is headquartered in East Aurora, NY.
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market's expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
Astronics has topped the Zacks Consensus Estimate in each of the last four quarters. The company most recently posted EPS of $0.49 per shar when the Zacks Consensus Estimate was calling for $0.42. That 7 cent beat translates into a 16.6% positive earnings surprise.
Over the last four quarters the average positive surprise works out to be 59%.
Earnings estimate revisions is what the Zacks Rank is all about.
Estimates are moving higher for Astronics.
The full year 2025 has increased from $1.60 to $1.78 over the last 60 days.
2026 has increased from $2.12 to $2.43 over the same time period.
There is good growth projected for Astronics. This fiscal year analysts are expecting $857M in revenue which would be good for 7.7% topline growth.
Next fiscal year, the consensus is calling for $980M and that would be good for 14.4% sales growth.
The valuation for Astronics is interesting given the growth prospects. I see a price to book multiple of 16x is pretty high given that this is not an asset slim business model. The forward PE if 27x is a little high, but the growth the company is expected to show makes up for that high multiple. Price to sales comes in at 2x, likely due to prior low levels of topline growth, but we know that is about to change.
Operating margins have increased from 5.8% to 7.2% to 8% over the last three quarters.
Good revenue growth couples with margins expansion leads to higher earnings. When we see good earnings growth the chances for higher multiples gets bigger and bigger.
Avnet is a Zacks Rank #5 (Strong Sell) despite recently beating the Zacks Consensus Estimate. The stock has a Zacks Style Score for Value of a B and a C for Growth. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Avnet, Inc. engages in the provision of distribution and sale of electronic components. It operates through the Electronic Components and Farnell segments. The Electronic Components segment markets and sells semiconductors, interconnect, passive and electromechanical devices, and integrated components. The Farnell segment focuses on the distribution of electronic components and related products to the electronic system design community utilizing multi-channel sales and marketing resources. The company was founded by Charles Avnet in 1921 and is headquartered in Phoenix, AZ.
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market's expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case Avnet I see the company has beat the Zacks Consensus Estimate in three of the last four quarters. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn't make it a Zacks Rank #5 (Strong Sell) either.
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
The most recent quarter saw the company report EPS of $0.84 when the consensus was calling for $0.81.
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For Avnet, I see annual estimates for next year moving lower of late.
The current fiscal year consensus number has slid from $4.61 to $4.36 over the last 90 days.
The next fiscal year has moved from $6.68 to $6.50 over the last 90 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a lot of stocks in the Zacks universe are seeing negative earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).
Target Corp. is introducing a wave of AI-powered tools to make holiday shopping simpler, more personalized and more enjoyable for guests everywhere. The company's latest innovations combine intelligent technology with seasonal excitement, helping shoppers plan, find and purchase everything on their wish lists at ease.
Target's digital strategy continues to strengthen the connection between online and in-store shopping. Guests who use the Target app while shopping in stores have basket sizes nearly 50% higher than those who do not, reflecting how the app enhances discovery and engagement. This insight has inspired Target to deliver a more connected, personal and intuitive shopping experience — one that simplifies gift-giving and brings more joy to the season.
A key feature of this initiative is the AI-powered Gift Finder, which provides customized gift recommendations based on information about the recipient or occasion. The List Scanner further enhances convenience by allowing guests to scan handwritten or digital lists directly into the Target app, instantly transforming them into shoppable carts for a more organized and efficient shopping process.
Inside stores, the upgraded Store Mode offers a smarter, more interactive shopping experience by guiding guests through aisles and suggesting alternative fulfillment options such as same-day or next-day delivery when items are unavailable. The feature helps ensure that guests can find everything they need quickly and easily.
To make shopping even more fun, Target has introduced a digital "Find Bullseye" scavenger hunt and virtual animated helpers that engage guests with lighthearted interactions. Through these innovations, Target continues to make holiday shopping easier, smarter and more enjoyable for families nationwide.
Walmart Inc. continued to advance its artificial intelligence initiatives aimed at improving customer experience, employee productivity and overall operational efficiency. In the second quarter of fiscal 2026, Walmart launched "Sparky," an AI-powered assistant integrated into its app to enhance search functionality and deliver more personalized shopping experiences. The retailer also established new leadership roles focused on AI acceleration and platform development, underscoring Walmart's long-term commitment to technology-driven growth.
Best Buy Co., Inc. continued to accelerate its digital transformation through significant advancements in AI and emerging technologies in the second quarter of fiscal 2026. Best Buy introduced more than 125 AI-powered laptops and desktops — nearly 70% of which are retail exclusives equipped with CoPilot Plus capabilities. Additionally, Best Buy trained more than 16,000 experts to help customers explore AI applications and integrate smart technologies into everyday life, reinforcing its leadership in consumer tech innovation.
The TGT stock has lost 32% year to date against the industry's growth of 4.1%.
Target's forward 12-month price-to-earnings ratio of 11.56 reflects a lower valuation than the industry's average of 29.78. TGT carries a Value Score of A.
The Zacks Consensus Estimate for TGT's fiscal 2025 earnings implies a year-over-year decline of 16.3%, while the same for fiscal 2026 indicates growth of 9%. Earnings estimates for fiscal 2025 and 2026 have been unchanged and southbound by 1 cent per share, respectively, in the past seven days.
Target currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
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