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Are Investors Undervaluing Arrow Electronics (ARW) Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
Arrow Electronics (ARW - Free Report) is a stock many investors are watching right now. ARW is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 7.97 right now. For comparison, its industry sports an average P/E of 9.23. Over the past year, ARW's Forward P/E has been as high as 11.24 and as low as 7.94, with a median of 8.95.
Investors should also note that ARW holds a PEG ratio of 0.84. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ARW's industry currently sports an average PEG of 0.98. Over the last 12 months, ARW's PEG has been as high as 1.05 and as low as 0.70, with a median of 0.88.
Finally, we should also recognize that ARW has a P/CF ratio of 9.17. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 13. Over the past 52 weeks, ARW's P/CF has been as high as 13.05 and as low as 9.13, with a median of 10.53.
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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Are Investors Undervaluing Arrow Electronics (ARW) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
Arrow Electronics (ARW - Free Report) is a stock many investors are watching right now. ARW is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 7.97 right now. For comparison, its industry sports an average P/E of 9.23. Over the past year, ARW's Forward P/E has been as high as 11.24 and as low as 7.94, with a median of 8.95.
Investors should also note that ARW holds a PEG ratio of 0.84. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ARW's industry currently sports an average PEG of 0.98. Over the last 12 months, ARW's PEG has been as high as 1.05 and as low as 0.70, with a median of 0.88.
Finally, we should also recognize that ARW has a P/CF ratio of 9.17. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 13. Over the past 52 weeks, ARW's P/CF has been as high as 13.05 and as low as 9.13, with a median of 10.53.
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.