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Arrow's (ARW) Rally Likely to Continue Further: Here's Why
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Arrow Electronics, Inc. (ARW - Free Report) is currently one of the top-performing stocks in the technology sector. The stock’s rally reflects the company’s robust fundamentals. Therefore, if you haven’t taken advantage of the share-price appreciation yet, it’s time you add the stock to your portfolio now.
The company has performed brilliantly over the past year and has the potential to carry on the momentum further.
Why an Attractive Pick?
Share-Price Appreciation: Arrow’s price trend reflects that the stock has had an impressive run on the bourse over the past year. Shares of the company have surged 98.8% compared with the Zacks Computer and Technology sector’s rally of 75.8%.
Solid Rank & Growth Score: Arrow currently carries a Zacks Rank #2 (Buy) and has a Growth Score of B. Our research shows that stocks with a Growth Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or #2, offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: All four analysts covering the stock have raised their estimates for 2021 over the past 60 days versus no southward revisions, reflecting their confidence in the company. During the same period, the Zacks Consensus Estimate for the current fiscal year has moved 14% north.
Positive Earnings Surprise History: Arrow has an impressive earnings surprise history. The company outpaced estimates in three of the trailing four quarters, delivering an average earnings surprise of 10.5%.
Solid Growth Prospects: The Zacks Consensus Estimate of $10.25 for 2021 earnings suggests growth of 32.3% from the year-ago reported figure. Moreover, earnings are expected to register 7.1% growth in 2022 and reach $10.98 per share. The long-term earnings per share growth rate is estimated to be 15.2%.
Growth Drivers: Arrow is benefiting from the solid uptrend in design activity across all regions. Strong momentum in infrastructure software, next-generation hardware and hybrid cloud architectures is encouraging as well.
Arrow’s core strength of providing best-in-class services and easy-to-acquire technologies will fuel its growth in the future. Its continued focus on boosting the Internet of things capabilities are helping it expand in newer markets and gain customers.
Furthermore, the latest forecast for worldwide IT spending by Gartner is a positive for Arrow. The worldwide IT spending is anticipated to be $3.75 trillion in 2021, suggesting an increase of 4% from 2020. The research firm expects worldwide spending on IT services to be up 4.1% year over year to $1.03 trillion this year.
A significant portion of the company’s revenues comes in from the sales of semiconductors. Despite the recent uncertainties and slowdown in the semiconductor market, per the recent predictions of WSTS, the semiconductor industry is projected to increase 8.4% in 2021 from $433 billion in 2020, which bodes well for the company.
Considering Arrow’s growth prospects, it makes sense to invest for long-term gains.
Other Stocks to Consider
Some other top-ranked stocks in the broader technology sector are Dropbox (DBX - Free Report) , NVIDIA (NVDA - Free Report) and Apple (AAPL - Free Report) , each carrying a Zacks Rank #2, at present.
The long-term earnings per share growth rate for Dropbox, NVIDIA and Apple is pegged at 40.9%, 12.6% and 11%, respectively.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research SherazMian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Image: Bigstock
Arrow's (ARW) Rally Likely to Continue Further: Here's Why
Arrow Electronics, Inc. (ARW - Free Report) is currently one of the top-performing stocks in the technology sector. The stock’s rally reflects the company’s robust fundamentals. Therefore, if you haven’t taken advantage of the share-price appreciation yet, it’s time you add the stock to your portfolio now.
The company has performed brilliantly over the past year and has the potential to carry on the momentum further.
Why an Attractive Pick?
Share-Price Appreciation: Arrow’s price trend reflects that the stock has had an impressive run on the bourse over the past year. Shares of the company have surged 98.8% compared with the Zacks Computer and Technology sector’s rally of 75.8%.
Solid Rank & Growth Score: Arrow currently carries a Zacks Rank #2 (Buy) and has a Growth Score of B. Our research shows that stocks with a Growth Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or #2, offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: All four analysts covering the stock have raised their estimates for 2021 over the past 60 days versus no southward revisions, reflecting their confidence in the company. During the same period, the Zacks Consensus Estimate for the current fiscal year has moved 14% north.
Positive Earnings Surprise History: Arrow has an impressive earnings surprise history. The company outpaced estimates in three of the trailing four quarters, delivering an average earnings surprise of 10.5%.
Solid Growth Prospects: The Zacks Consensus Estimate of $10.25 for 2021 earnings suggests growth of 32.3% from the year-ago reported figure. Moreover, earnings are expected to register 7.1% growth in 2022 and reach $10.98 per share. The long-term earnings per share growth rate is estimated to be 15.2%.
Growth Drivers: Arrow is benefiting from the solid uptrend in design activity across all regions. Strong momentum in infrastructure software, next-generation hardware and hybrid cloud architectures is encouraging as well.
Arrow’s core strength of providing best-in-class services and easy-to-acquire technologies will fuel its growth in the future. Its continued focus on boosting the Internet of things capabilities are helping it expand in newer markets and gain customers.
Furthermore, the latest forecast for worldwide IT spending by Gartner is a positive for Arrow. The worldwide IT spending is anticipated to be $3.75 trillion in 2021, suggesting an increase of 4% from 2020. The research firm expects worldwide spending on IT services to be up 4.1% year over year to $1.03 trillion this year.
A significant portion of the company’s revenues comes in from the sales of semiconductors. Despite the recent uncertainties and slowdown in the semiconductor market, per the recent predictions of WSTS, the semiconductor industry is projected to increase 8.4% in 2021 from $433 billion in 2020, which bodes well for the company.
Considering Arrow’s growth prospects, it makes sense to invest for long-term gains.
Other Stocks to Consider
Some other top-ranked stocks in the broader technology sector are Dropbox (DBX - Free Report) , NVIDIA (NVDA - Free Report) and Apple (AAPL - Free Report) , each carrying a Zacks Rank #2, at present.
The long-term earnings per share growth rate for Dropbox, NVIDIA and Apple is pegged at 40.9%, 12.6% and 11%, respectively.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research SherazMian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>