Back to top

Image: Bigstock

Arrow Electronics (ARW) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

Arrow Electronics (ARW - Free Report) closed at $125.85 in the latest trading session, marking a +0.95% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.28%. Elsewhere, the Dow gained 0.29%, while the tech-heavy Nasdaq added 0.16%.

Prior to today's trading, shares of the electronics maker had lost 4.74% over the past month. This has was narrower than the Computer and Technology sector's loss of 10.69% and the S&P 500's loss of 5.39% in that time.

Wall Street will be looking for positivity from Arrow Electronics as it approaches its next earnings report date. This is expected to be February 3, 2022. On that day, Arrow Electronics is projected to report earnings of $4.42 per share, which would represent year-over-year growth of 39.43%. Meanwhile, our latest consensus estimate is calling for revenue of $8.85 billion, up 4.72% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for Arrow Electronics. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Arrow Electronics is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Arrow Electronics currently has a Forward P/E ratio of 8.02. This valuation marks a discount compared to its industry's average Forward P/E of 8.05.

Meanwhile, ARW's PEG ratio is currently 0.29. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Electronics - Parts Distribution industry currently had an average PEG ratio of 0.29 as of yesterday's close.

The Electronics - Parts Distribution industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 42, putting it in the top 17% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Arrow Electronics, Inc. (ARW) - free report >>

Published in