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Should Value Investors Buy Arrow Electronics (ARW) Stock?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Arrow Electronics (ARW - Free Report) . ARW is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 8.40, which compares to its industry's average of 9.59. Over the past year, ARW's Forward P/E has been as high as 11.24 and as low as 8.24, with a median of 9.58.
Investors will also notice that ARW has a PEG ratio of 0.90. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ARW's industry has an average PEG of 1.11 right now. Over the last 12 months, ARW's PEG has been as high as 1.19 and as low as 0.70, with a median of 0.89.
Finally, our model also underscores that ARW has a P/CF ratio of 10.76. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. ARW's P/CF compares to its industry's average P/CF of 13.63. ARW's P/CF has been as high as 13.05 and as low as 9.65, with a median of 10.63, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Arrow Electronics is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ARW feels like a great value stock at the moment.
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Should Value Investors Buy Arrow Electronics (ARW) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Arrow Electronics (ARW - Free Report) . ARW is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 8.40, which compares to its industry's average of 9.59. Over the past year, ARW's Forward P/E has been as high as 11.24 and as low as 8.24, with a median of 9.58.
Investors will also notice that ARW has a PEG ratio of 0.90. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ARW's industry has an average PEG of 1.11 right now. Over the last 12 months, ARW's PEG has been as high as 1.19 and as low as 0.70, with a median of 0.89.
Finally, our model also underscores that ARW has a P/CF ratio of 10.76. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. ARW's P/CF compares to its industry's average P/CF of 13.63. ARW's P/CF has been as high as 13.05 and as low as 9.65, with a median of 10.63, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Arrow Electronics is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ARW feels like a great value stock at the moment.