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

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In the latest trading session, Arrow Electronics (ARW - Free Report) closed at $118.23, marking a +0.95% move from the previous day. This change outpaced the S&P 500's 0.81% gain on the day. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 0.61%.

Coming into today, shares of the electronics maker had lost 1.6% in the past month. In that same time, the Computer and Technology sector gained 4.13%, while the S&P 500 gained 5.64%.

Wall Street will be looking for positivity from Arrow Electronics as it approaches its next earnings report date. The company is expected to report EPS of $4.53, up 59.51% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.67 billion, up 3.37% from the year-ago period.

ARW's full-year Zacks Consensus Estimates are calling for earnings of $18.48 per share and revenue of $35.31 billion. These results would represent year-over-year changes of +19.23% and +2.42%, respectively.

It is also important to note the recent changes to analyst estimates for Arrow Electronics. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Arrow Electronics is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note Arrow Electronics's current valuation metrics, including its Forward P/E ratio of 6.34. This valuation marks a discount compared to its industry's average Forward P/E of 7.04.

It is also worth noting that ARW currently has a PEG ratio of 2.03. 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 1.14 at yesterday's closing price.

The Electronics - Parts Distribution industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 27, which puts it in the top 11% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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