Arrow Electronics - Aggressive Growth

Arrow Electronics Inc (ARW) continues to surge since its original feature as a Zacks Rank Buy. Estimates are climbing and the company is coming off of a record year.

Shares of ARW are surging, but it is not too late to get in this Zacks #2 Rank (Buy).

Company Description

Arrow offers industrial and commercial electronics, services and computing solutions. The company works with over 900 suppliers and 125,000 OEMs around the world.

Record Quarter

On Feb 2 Arrow announced record quarterly results. Sales jumped 25% to $5.24 billion. Net income came in at $158 million, about 2.5 times the same period last year. Earnings broke down to $1.29 per share, more than doubling year-over-year and 2 cents ahead of expectations. The quarter put an exclamation point on a year that saw record revenue and earnings per share and was the company's ninth consecutive surprise.

Arrow's management sounded optimistic moving forward. The comments in the press release focused on gaining market share as an even strong company emerged from the recession.

Estimates Picking Up Steam

The Zacks Consensus Estimate for full-year 2011 is already starting to climb. We had 5 upward revisions into the number and 2 since the report, pushing this year's average estimate to $4.50, from $4.37.

Next year's forecasts are averaging $4.88, up from $4.67. This would give Arrow annual growth rates of 9% and 8%, respectively.

Hot Stock, Great Value

Arrow is the top rated company of its 5 peers. The industry currently ranks 36th out of 264 at Zacks.com. So, its a great company in a hot industry.

Don't worry about overpaying for shares of ARW. The stock can be yours for only 9 times forward estimates. And we are expecting that to move high as more estimates come in over the next couple weeks. Arrow's PEG ratio is only 0.23 and its price-to-sales is an enticing 0.25.

The Chart

Shares of ARW have been screaming since being featured as a Zacks Rank Buy in September, then again in November. You may be reluctant to get in after such a big move, but you can see those earnings trends justify the current move and then some.

Read the November 22nd Feature Here

Bill Wilton is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Small Cap Trader service

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