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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 $115.79 in the latest trading session, marking a +1.06% move from the prior day. This change outpaced the S&P 500's 1.48% loss on the day. Elsewhere, the Dow lost 1.05%, while the tech-heavy Nasdaq lost 0.09%.

Coming into today, shares of the electronics maker had lost 7.99% in the past month. In that same time, the Computer and Technology sector lost 5.18%, while the S&P 500 gained 0.08%.

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

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $18.48 per share and revenue of $35.31 billion. These totals would mark changes of +19.23% and +2.42%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Arrow Electronics. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 #4 (Sell).

Digging into valuation, Arrow Electronics currently has a Forward P/E ratio of 6.2. Its industry sports an average Forward P/E of 6.97, so we one might conclude that Arrow Electronics is trading at a discount comparatively.

Meanwhile, ARW's PEG ratio is currently 1.98. 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. The Electronics - Parts Distribution was holding an average PEG ratio of 1.13 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 244, which puts it in the bottom 4% 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.

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

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