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6 Reasons Why You Should Bet on Arrow Electronics (ARW) Stock


Arrow Electronics, Inc. ARW is currently one of the top-performing stocks in the technology sector and a rise in share price and strong fundamentals signal its bullish run. Therefore, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.

Why an Attractive Pick?

Share Price Appreciation: A glimpse of the company’s price trend reveals that the stock has had an impressive run on the bourse year to date. Arrow has gained 15.9% against the industry’s loss of 0.4%.

Solid Rank & VGM Score: Arrow currently carries a Zacks Rank #2 (Buy) and has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment.

Northward Estimate Revisions: Five estimates for the current year moved north over the past 60 days versus no southward revisions, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate has stayed flat at $7.30.

Positive Earnings Surprise History: Arrow has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in three of the trailing four quarters, delivering a positive average earnings surprise of 1.2%.

Arrow Electronics, Inc. Net Income (TTM)

Strong Growth Prospects: The company’s Zacks Consensus Estimate for 2017 earnings of $7.3 per share reflects year-over-year growth of 10.1%. Moreover, earnings are expected to register 10.3% growth in 2018. The stock has long-term expected earnings per share growth rate of 10.1%.

Growth Drivers: Original equipment manufacturers, contract manufacturers and commercial customers are selecting Arrow’s distribution channels for marketing their products.

The company’s core strength in providing best-in-class services and easy-to-acquire technologies is boosting growth and is anticipated to do so in the quarters ahead.

Incremental sales from strategic acquisitions such as Computerlinks, Data Modul AG and immixGroup are expected to boost the top line.

Other Stocks to Consider

Stocks worth considering in the broader technology sector include Micron Technology, Inc. MU, Applied Materials AMAT and Jabil Inc. JBL, each carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term earnings per share growth rate for Micron, Applied Materials and Jabil is projected to be 10%, 17.1% and 12%, respectively.

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