Canada markets closed
  • S&P/TSX

    20,286.20
    +88.59 (+0.44%)
     
  • S&P 500

    3,941.48
    -32.27 (-0.81%)
     
  • DOW

    31,928.62
    +48.38 (+0.15%)
     
  • CAD/USD

    0.7802
    -0.0032 (-0.41%)
     
  • CRUDE OIL

    110.26
    +0.49 (+0.45%)
     
  • BTC-CAD

    37,873.71
    +206.32 (+0.55%)
     
  • CMC Crypto 200

    655.31
    -0.52 (-0.08%)
     
  • GOLD FUTURES

    1,865.50
    +0.10 (+0.01%)
     
  • RUSSELL 2000

    1,764.83
    -27.94 (-1.56%)
     
  • 10-Yr Bond

    2.7600
    -0.0990 (-3.46%)
     
  • NASDAQ futures

    11,810.75
    -224.50 (-1.87%)
     
  • VOLATILITY

    29.45
    +0.97 (+3.41%)
     
  • FTSE

    7,484.35
    -29.09 (-0.39%)
     
  • NIKKEI 225

    26,748.14
    -253.38 (-0.94%)
     
  • CAD/EUR

    0.7265
    -0.0057 (-0.78%)
     

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

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Arrow Electronics (ARW) closed at $134.96 in the latest trading session, marking a +0.71% move from the prior day. This move outpaced the S&P 500's daily gain of 0.08%. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq lost 4.81%.

Prior to today's trading, shares of the electronics maker had gained 7.78% over the past month. This has outpaced the Computer and Technology sector's loss of 2.99% and the S&P 500's gain of 0.64% in that time.

Investors will be hoping for strength from Arrow Electronics as it approaches its next earnings release. In that report, analysts expect Arrow Electronics to post earnings of $4.42 per share. This would mark year-over-year growth of 39.43%. Our most recent consensus estimate is calling for quarterly revenue of $8.85 billion, up 4.72% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Arrow Electronics. Recent revisions tend to reflect the latest 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. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. Arrow Electronics is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Arrow Electronics's current valuation metrics, including its Forward P/E ratio of 10.33. For comparison, its industry has an average Forward P/E of 8.68, which means Arrow Electronics is trading at a premium to the group.

We can also see that ARW currently has a PEG ratio of 0.38. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Electronics - Parts Distribution stocks are, on average, holding a PEG ratio of 0.32 based on yesterday's closing prices.

The Electronics - Parts Distribution industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 43, which puts it in the top 17% 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.

To follow ARW in the coming trading sessions, be sure to utilize Zacks.com.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Arrow Electronics, Inc. (ARW) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting