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Arrow Electronics (ARW) Is Now a Learning Partner of HPE

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Arrow Electronics, Inc. (ARW - Free Report) recently announced that it has collaborated with Hewlett Packard Enterprise Company (HPE - Free Report) to become a Designated Learning Partner.

Per the partnership, Arrow will now provide “authorized HPE Partner Ready Certification training” to its customers. The courses will include designing, deploying, administering and managing HPE servers, data centers and converged systems among others.

Arrow Electronics with the assistance of the resources from HPE looks to educate customers with the knowledge related to HPE’s host of products and solutions, that will in turn be positively impacting the profit margin of the customers.

We believe the collaboration with HPE will be beneficial for Arrow as the latter will be introduced to the vast customer base of HPE, part of which might be interested in Arrow Electronics’ electronic components and enterprise computing products.

Hence, this partnership is anticipated to assist Arrow Electronics in expanding its customer base, which will eventually boost its top line in the long run. Notably, in first-quarter 2018, the company’s revenues were up 14.4% on an adjusted basis to $6.876 million.

Other Notable Initiatives

Arrow also recently announced the amendment of its Asset Securitization Program. The maturity of the program has been extended to June 2021 from September 2019. The capacity has been increased from $910 million to $1.2 billion.

Management is optimistic about liquidity facilities like these, which provide financial flexibility to the company for driving growth.

This apart, we believe, Arrow’s core strength of providing best-in-class services and easy-to-acquire technologies will bolster its growth in the future. Moreover, the company has secured significant market share through a broad portfolio of products and services, and continued efforts to maximize consumer satisfaction.

Additionally, incremental sales from strategic acquisitions and partnerships are expected to boost the top line going ahead.

Zacks Rank and Other Stocks to Consider

Arrow Electronics currently has a Zacks Rank #2 (Buy).

A few other top-ranked technology stocks are NVIDIA (NVDA - Free Report) and Citrix Systems, Inc. , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for NVIDIA and Citrix Systems is currently projected to be 10.3% and 9.1%, respectively.

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