Arrow Electronics, Inc. (ARW - Free Report) recently announced a partnership with the Internet of Things (IoT) foundry of AT&T (T - Free Report) which is based out of Plano, TX. The foundry formed with the aim of assisting companies with innovation of IoT solutions, offers a workspace and an incubation unit.
Arrow will be incorporating its “sensor-to-sunset” technical offerings including the likes of its on-site based production and engineering technological solutions. These offerings will aid the customers to rapidly introduce their IoT products to the market.
Per the press release, the two companies will be complementing each other courtesy Arrow’s “engineering to manufacturing and product deployment” capabilities which are anticipated to perfectly blend with the foundry’s intent of simplifying the process of launching connected products for the end market.
IoT is anticipated to grow robustly on the back of consistently rising number of connected products’ usage in daily lives. Per a recent report by MarketsandMarkets, the IoT market is expected to witness CAGR of 26.9% from $170.57 billion in 2017 to $561.04 billion in 2022.
Notably, Arrow has been trying to make its mark in the IoT industry of late. Its recent acquisition of eInfochips is another testimony to this fact. We believe, Arrow is slowly strengthening position in the market and is anticipated to gain from projected growth of the industry.
Additionally, these initiatives are expected to be accretive to the electronic parts distributor’s top and bottom lines going ahead, consequently bolstering investors’ confidence and in turn share price momentum.
Arrow stock has gained 15.2% the past year, substantially outperforming the 0.6% rally of the industry it belongs to.
Zacks Rank and Key Picks
Arrow has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Mellanox Technologies, Ltd. (MLNX - Free Report) , and EchoStar Corporation (SATS - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term expected earnings per share growth rate for Mellanox and EchoStar is 16%, and 18.5%, respectively.
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