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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 $114.59, marking a +1.46% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.57%. At the same time, the Dow added 0.7%, and the tech-heavy Nasdaq gained 0.08%.
Coming into today, shares of the electronics maker had lost 10.86% in the past month. In that same time, the Computer and Technology sector lost 11.12%, while the S&P 500 lost 5.26%.
Investors will be hoping for strength from Arrow Electronics as it approaches its next earnings release, which is expected to be May 5, 2022. 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.
For the full year, our Zacks Consensus Estimates are projecting earnings of $18.48 per share and revenue of $35.31 billion, which would represent changes of +19.23% and +2.42%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Arrow Electronics. These recent revisions tend to reflect the evolving nature of short-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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Arrow Electronics is currently a Zacks Rank #4 (Sell).
Investors should also note Arrow Electronics's current valuation metrics, including its Forward P/E ratio of 6.11. For comparison, its industry has an average Forward P/E of 6.91, which means Arrow Electronics is trading at a discount to the group.
We can also see that ARW currently has a PEG ratio of 1.95. 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. The Electronics - Parts Distribution industry currently had an average PEG ratio of 1.09 as of yesterday's close.
The Electronics - Parts Distribution industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 242, putting it in the bottom 5% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Arrow Electronics (ARW) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Arrow Electronics (ARW - Free Report) closed at $114.59, marking a +1.46% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.57%. At the same time, the Dow added 0.7%, and the tech-heavy Nasdaq gained 0.08%.
Coming into today, shares of the electronics maker had lost 10.86% in the past month. In that same time, the Computer and Technology sector lost 11.12%, while the S&P 500 lost 5.26%.
Investors will be hoping for strength from Arrow Electronics as it approaches its next earnings release, which is expected to be May 5, 2022. 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.
For the full year, our Zacks Consensus Estimates are projecting earnings of $18.48 per share and revenue of $35.31 billion, which would represent changes of +19.23% and +2.42%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Arrow Electronics. These recent revisions tend to reflect the evolving nature of short-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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Arrow Electronics is currently a Zacks Rank #4 (Sell).
Investors should also note Arrow Electronics's current valuation metrics, including its Forward P/E ratio of 6.11. For comparison, its industry has an average Forward P/E of 6.91, which means Arrow Electronics is trading at a discount to the group.
We can also see that ARW currently has a PEG ratio of 1.95. 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. The Electronics - Parts Distribution industry currently had an average PEG ratio of 1.09 as of yesterday's close.
The Electronics - Parts Distribution industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 242, putting it in the bottom 5% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.