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Arrow Electronics (ARW) Gains As Market Dips: What You Should Know

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In the latest trading session, Arrow Electronics (ARW - Free Report) closed at $136.05, marking a +0.55% move from the previous day. This change outpaced the S&P 500's 0.06% loss on the day. At the same time, the Dow added 0.59%, and the tech-heavy Nasdaq lost 0.3%.

Coming into today, shares of the electronics maker had gained 9.91% in the past month. In that same time, the Computer and Technology sector gained 4.06%, while the S&P 500 gained 5.76%.

Wall Street will be looking for positivity from Arrow Electronics as it approaches its next earnings report date. In that report, analysts expect Arrow Electronics to post earnings of $4.42 per share. This would mark year-over-year growth of 39.43%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.85 billion, up 4.72% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Arrow Electronics. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Arrow Electronics is holding a Zacks Rank of #2 (Buy) right now.

Valuation is also important, so investors should note that Arrow Electronics has a Forward P/E ratio of 8.7 right now. Its industry sports an average Forward P/E of 8.7, so we one might conclude that Arrow Electronics is trading at a no noticeable deviation comparatively.

It is also worth noting that ARW currently has a PEG ratio of 0.32. 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. Electronics - Parts Distribution stocks are, on average, holding a PEG ratio of 0.32 based on yesterday's closing prices.

The Electronics - Parts Distribution industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 18, putting it in the top 8% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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