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Aggressive Growth

Arrow Electronics Inc (ARW - Analyst Report) shot to all-time highs after a recent earnings surprise, yet shares are still a great value.

More over, post-surprise estimates have not come in yet so the growth story and valuations should only improve for this Zacks #2 Rank (Buy).

Company Description

Arrow offers industrial and commercial electronics, services and computing solutions. The company works with over 900 suppliers and 125,000 OEMs around the world.

Keeps Getting Better

Since Arrow was last featured, the earnings estimates have been on the rise. The full-year Zacks Consensus Estimate for 2011 is up 38 cents, to $4.88. Next year's average estimate is up 44 cents, to $5.32.

On top of that, we should see further upward revisions following Wednesday's earnings surprise.

Guiding Higher

Not only did Arrow beat expectations with $1.24 in earnings per share compared to the consensus of $1.12, but hey also increased expectations. At the time of the report analysts were expecting $1.19 per share for the second quarter, but the company sees that number landing between $1.30 and $1.40.

The same story can be said for revenues. Arrow's top line came in higher than expected and they guided above expectations for next quarter as well.

Priced Right

Even before the expected upward revisions, shares are already trading at a discount. The forward P/E is just 9 times the 2011 estimate and the PEG ratio is coming in at only 0.7.

The Chart

Even more remarkable about the valuations is that shares are trading at all-time highs. Take a look below as ARW broke out to new highs. Investors might not typically go for a chart like this, but considering the great value, which will only get better, this is still a good entry point.

Read the February 4th Feature Here

Arrow Electronics Inc - ticker ARW >
 
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Bill Wilton is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Small Cap Trader service

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