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Arrow Electronics (ARW) Gains As Market Dips: What You Should Know
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Arrow Electronics (ARW - Free Report) closed at $119.86 in the latest trading session, marking a +1.11% move from the prior day. This change outpaced the S&P 500's 1.3% loss on the day. Elsewhere, the Dow lost 0.69%, while the tech-heavy Nasdaq lost 0.45%.
Heading into today, shares of the electronics maker had lost 6.45% over the past month, outpacing the Computer and Technology sector's loss of 8.81% and lagging the S&P 500's loss of 5.33% in that time.
Investors will be hoping for strength from Arrow Electronics as it approaches its next earnings release. On that day, Arrow Electronics is projected to report earnings of $4.53 per share, which would represent year-over-year growth of 59.51%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.67 billion, up 3.37% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $18.48 per share and revenue of $35.31 billion, which would represent changes of +19.23% and +2.42%, respectively, from the prior year.
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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Arrow Electronics is currently sporting a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Arrow Electronics currently has a Forward P/E ratio of 6.42. For comparison, its industry has an average Forward P/E of 7.06, which means Arrow Electronics is trading at a discount to the group.
We can also see that ARW currently has a PEG ratio of 2.05. 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 was holding an average PEG ratio of 1.01 at yesterday's closing price.
The Electronics - Parts Distribution industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 1, putting it in the top 1% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Arrow Electronics (ARW) Gains As Market Dips: What You Should Know
Arrow Electronics (ARW - Free Report) closed at $119.86 in the latest trading session, marking a +1.11% move from the prior day. This change outpaced the S&P 500's 1.3% loss on the day. Elsewhere, the Dow lost 0.69%, while the tech-heavy Nasdaq lost 0.45%.
Heading into today, shares of the electronics maker had lost 6.45% over the past month, outpacing the Computer and Technology sector's loss of 8.81% and lagging the S&P 500's loss of 5.33% in that time.
Investors will be hoping for strength from Arrow Electronics as it approaches its next earnings release. On that day, Arrow Electronics is projected to report earnings of $4.53 per share, which would represent year-over-year growth of 59.51%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.67 billion, up 3.37% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $18.48 per share and revenue of $35.31 billion, which would represent changes of +19.23% and +2.42%, respectively, from the prior year.
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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Arrow Electronics is currently sporting a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Arrow Electronics currently has a Forward P/E ratio of 6.42. For comparison, its industry has an average Forward P/E of 7.06, which means Arrow Electronics is trading at a discount to the group.
We can also see that ARW currently has a PEG ratio of 2.05. 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 was holding an average PEG ratio of 1.01 at yesterday's closing price.
The Electronics - Parts Distribution industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 1, putting it in the top 1% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.