Arrow Electronics - Aggressive Growth

Arrow Electronics Inc (ARW) analysts are very bullish on the company's future. Estimates are rising, keeping valuations in check, pushing shares to a Zacks #1 Rank (Strong Buy).

The stock is nearing its 52-week high, but there are plenty of reasons to push right past that mark.

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.

Another Surprise

Since originally featuring Arrow as a Zacks Rank Buy back in September, the company has posted yet another earnings surprise. The Oct 27 press release showed EPS almost tripling, from 37 cents last year to $1.08. That marks a company record.

Sales were also up sharply, to $4.66 billion from $3.67 billion a year ago. The 27% jump was mainly driven by global component sales, which surged 35% to $3.44 billion.

Estimates Jump

After Arrow guided higher for the next quarter, analysts quickly raised their forecasts as well. The full-year consensus for this year is up 31 cents, to $4.15.

Next year's projections are up 50 cents, to $4.37. If Arrow can hit these targets the annual growth rates will be 147% and 5%, respectively.

Great Price Too

Right now shares are trading with very attractive valuations as well. The forward P/E is under 8 times and the PEG ratio is showing a bargain at 0.5.

Arrow's price to sales is just 0.21 times. All three of those metrics are well ahead of the industry average.

The Chart

Shares were on a tear over the past few months, but have hit a bit of a hurdle here, near the 52-week high. Although, given the strong growth, bullish estimate revisions and cheap valuations shares have a great chance of leaping over that mark.

Read the September 23rd 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

Last Week's Aggressive Growth Zacks Rank Buy Stocks

Park-Ohio Holdings (PKOH) reported earnings about 3 times higher than expected, which instantly pushed expectations higher.

Even though shares have moved higher, the valuations are great and this Zacks #1 Rank (Strong Buy) is poised for another run.

Read Full Article.

Tata Motors (TTM) shares continue to surge, but thanks to huge estimate revisions the valuations are incredibly cheap.

If you are looking for exposure the BRIC countries, this Indian auto maker is a great option.

Read Full Article.

Polo Ralph Lauren Corp (RL) recently extended its impressive earnings surprise streak as retail figures remain strong in the face of high unemployment.

Earnings estimates are on the rise, pushing RL to a Zacks #1 Rank (Strong Buy) and there is still plenty of upside moving forward.

Read Full Article.

Air Methods Corp (AIRM) is coming off of back-to-back earnings surprises, thanks to solid increases in revenue.

Currently shares are trading with great valuations, solid growth rates and a Zacks #1 Rank (Strong Buy).

Read Full Article.

 
ARROW ELECTRONI (ARW): Free Stock Analysis Report
 
Zacks Investment Research