Arrow Electronics (ARW - Free Report) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.
As such, the Zacks rating upgrade for Arrow Electronics is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Arrow Electronics imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for Arrow ElectronicsFor the fiscal year ending December 2026, this electronics maker is expected to earn $21.24 per share, which is unchanged compared with the year-ago reported number.
Analysts have been steadily raising their estimates for Arrow Electronics. Over the past three months, the Zacks Consensus Estimate for the company has increased 10.9%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Arrow Electronics to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Key Takeaways Concentra Group saw broker ratings rise 10% in four weeks, with 2026 earnings projected to grow 16.8%.QuinStreet's broker ratings rose 14.3% in four weeks, while fiscal 2027 earnings are projected to grow 26%.Arrow Electronics saw broker ratings rise 20% in four weeks, with 2026 earnings expected to jump 92.7%. U.S. equities have posted solid gains so far this year despite periodic volatility. Fed policy uncertainty, elevated Treasury yields, rising oil prices, persistent inflation, tariff concerns and stretched technology valuations have weighed on sentiment. Still, resilient corporate earnings and sustained AI investment have supported markets, keeping major indexes firmly positive in 2026.
Amid this backdrop, choosing the right stock can become challenging. One way to simplify this task is to follow brokers’ recommendations. Stocks like Concentra Group Holdings Parent, Inc. (CON - Free Report) , QuinStreet, Inc. (QNST - Free Report) and Arrow Electronics Inc. (ARW - Free Report) are worth investing in.
Broker recommendations are supported by research, including discussions with company management, reviews of regulatory filings, earnings call analysis, channel checks and broader industry assessments. This approach enables analysts to evaluate a company’s fundamentals within the context of macroeconomic trends, sector conditions, competitive positioning and peer performance, offering a more comprehensive view than assessing the business in isolation.
A broker upgrade generally reflects an improvement in an analyst’s outlook for a company. Such revisions may stem from favorable developments that are not yet fully captured in consensus estimates or the stock’s valuation. As a result, an upgrade can indicate a potential turning point in earnings expectations, valuation perceptions and investor sentiment.
However, broker upgrades should not be treated as stand-alone investment signals. Their usefulness increases when assessed alongside other fundamental, earnings and valuation indicators. Therefore, broker recommendations are most effective when incorporated into a broader, balanced and disciplined investment decision-making process.
Selecting the Winning StrategyWe have a screening strategy that may help you identify potential winners.
Broker Rating Upgrades (Four Weeks) of 1% or More: The screen selects stocks that have witnessed broker rating upgrades of 1% or more over the past four weeks.
Current Price Greater Than $5: The stocks must trade above $5.
Average 20-Day Volume Greater Than 100,000: A large trading volume guarantees that the stock is easily tradable.
Zacks Rank Equal to #1 (Strong Buy) or 2 (Buy): Despite good or bad market conditions, stocks with a Zacks Rank #1 or 2 have a proven record of success. You can see the complete list of today’s Zacks #1 Rank stocks here.
VGM Score of A or B: Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.
3 Stocks With Upgraded Broker Ratings to BuyAddison, TX-based Concentra Group is engaged in providing occupational health services in the United States. CON operates in three segments: Occupational Health centers, Onsite health clinics and Other business.
CON’s 2026 earnings are expected to rise 16.8% year over year. Concentra Group, which currently sports a Zacks Rank #1, has witnessed a 10% upward revision in broker ratings over the past four weeks.
QuinStreet, based in Foster City, CA, provides performance marketing and customer acquisition services across financial, home services, education and other markets. QNST offers leads, calls, applications, customers, insurance technology and agency solutions to its clients globally.
QuinStreet’s fiscal 2027 earnings are projected to grow 26% on a year-over-year basis. QNST, sporting a Zacks Rank #1 at present, has seen a 14.3% increase in broker ratings over the past four weeks.
Headquartered in New York, Arrow Electronics is one of the world’s largest distributors of electronic components and enterprise computing products. ARW provides one of the broadest product ranges in the electronic components and enterprise computing solutions distribution industries.
ARW’s 2026 earnings are expected to jump 92.7% year over year. Arrow Electronics, which currently sports a Zacks Rank #1, has witnessed a 20% upward revision in broker ratings over the past four weeks.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.8% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Arrow Electronics (ARW - Free Report) New York-based Arrow Electronics Inc. is one of the world’s largest distributors of electronic components and enterprise computing products. Arrow provides one of the broadest product ranges in the electronic components and enterprise computing solutions distribution industries. Along with these, the company provides a wide range of value-added services to help customers reduce their marketing time, lower the total cost of ownership, introduce innovative products through demand creation opportunities and enhance their overall competitiveness.
ARW is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 9.7; value investors should take notice.
Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $2.09 to $21.24 per share. ARW boasts an average earnings surprise of +34.4%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, ARW should be on investors' short list.
Expanded offerings enable channel partners to deliver end-to-end networking, hybrid cloud, AI, and infrastructure solutions with greater simplicity and scale.
CENTENNIAL, Colo.--(BUSINESS WIRE)--Arrow Electronics, Inc. (NYSE: ARW) today announced it has been awarded distribution rights for the HPE Networking product portfolio across North America and select EMEA countries1. The addition expands Arrow's ability to provide channel partners with the complete HPE portfolio, including HPE Aruba Networking and HPE Juniper Networking solutions.
The expansion gives channel partners access to a comprehensive set of solutions spanning campus, data center, cloud-managed networking, and AI-native infrastructure. It also strengthens Arrow's long-standing relationship with HPE while supporting HPE's commitment to preserve partner choice through regional and specialist distributors, market continuity, and deeper technical coverage.
By bringing the complete HPE portfolio together under one roof, Arrow helps channel partners in both regions streamline procurement, accelerate solution development, and address increasingly complex hybrid cloud, networking, and AI opportunities with greater simplicity and scale.
“Our expanded HPE relationship gives our channel partners a stronger platform for growth,” said Eric Nowak, global president of Arrow’s enterprise computing solutions business. “Channel partners can now engage Arrow for a more complete set of solutions, backed by the technical expertise, services, and enablement resources needed to turn networking demand into measurable business outcomes.”
Through Arrow, channel partners will be able to bring customers a broader set of options for managing networking environments across locations and through the cloud, while also supporting data center modernization and virtualization migration initiatives. Arrow’s home-grown HPE services capabilities can also help channel partners augment networking opportunities with integration, support and technical expertise designed to accelerate customer outcomes.
“HPE brings together a powerful combination of innovation, partner loyalty and market opportunity,” said Jeremiah Jenson, vice president, North America Channel & Partner Ecosystem, HPE. “Arrow’s reach, technical depth and channel enablement capabilities make it well positioned to complement HPE’s global distribution model and help channel partners deliver the full value of the HPE portfolio to customers across North America and select EMEA countries.”
The availability of the full HPE portfolio, combined with Arrow’s experience centers, services offerings and practice accelerator program, creates new opportunities for channel partners to attach networking to compute, storage, hybrid cloud and services; package more complete solutions; and deliver the networking foundation customers need for AI, cloud and modern data center transformation.
In EMEA, Arrow will support the complete HPE product portfolio, including HPE Aruba Networking and HPE Juniper Networking, in select awarded countries, with local communications to follow where required.
About Arrow Electronics
Arrow Electronics (NYSE: ARW) sources and engineers technology solutions for thousands of leading manufacturers and service providers. With global 2025 sales of $31 billion, Arrow’s portfolio enables technology across major industries and markets. Learn more at arrow.com.
Canada Pension Plan Investment Board purchased a new position in shares of Arrow Electronics, Inc. (NYSE:ARW – Free Report) during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 11,500 shares of the technology company’s stock, valued at approximately $2,454,000.
A number of other institutional investors and hedge funds have also bought and sold shares of the stock. Private Advisor Group LLC grew its position in shares of Arrow Electronics by 2.6% in the 1st quarter. Private Advisor Group LLC now owns 3,054 shares of the technology company’s stock valued at $438,000 after buying an additional 78 shares during the last quarter. Root Financial Partners LLC lifted its stake in shares of Arrow Electronics by 38.9% in the 1st quarter. Root Financial Partners LLC now owns 282 shares of the technology company’s stock valued at $40,000 after purchasing an additional 79 shares during the period. Krilogy Financial LLC boosted its holdings in shares of Arrow Electronics by 3.2% during the 1st quarter. Krilogy Financial LLC now owns 2,543 shares of the technology company’s stock worth $365,000 after buying an additional 80 shares in the last quarter. Gateway Investment Advisers LLC boosted its stake in Arrow Electronics by 3.8% during the fourth quarter. Gateway Investment Advisers LLC now owns 2,276 shares of the technology company’s stock worth $251,000 after acquiring an additional 84 shares in the last quarter. Finally, Oregon Public Employees Retirement Fund grew its stake in shares of Arrow Electronics by 0.8% in the 2nd quarter. Oregon Public Employees Retirement Fund now owns 10,567 shares of the technology company’s stock valued at $2,255,000 after buying an additional 84 shares during the period. 99.34% of the stock is currently owned by institutional investors and hedge funds.
Arrow Electronics Price Performance Shares of NYSE ARW opened at $203.70 on Monday. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.01 and a current ratio of 1.22. Arrow Electronics, Inc. has a fifty-two week low of $101.79 and a fifty-two week high of $237.33. The stock has a market cap of $10.37 billion, a PE ratio of 13.02, a price-to-earnings-growth ratio of 0.30 and a beta of 1.20. The stock has a fifty day moving average of $210.78 and a 200-day moving average of $189.24.
Arrow Electronics (NYSE:ARW – Get Free Report) last posted its earnings results on Thursday, August 6th. The technology company reported $5.45 earnings per share for the quarter, beating analysts’ consensus estimates of $4.45 by $1.00. The business had revenue of $9.99 billion during the quarter, compared to analyst estimates of $9.67 billion. Arrow Electronics had a return on equity of 13.41% and a net margin of 2.26%.The company’s quarterly revenue was up 31.8% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $2.43 EPS. Arrow Electronics has set its Q3 2026 guidance at 4.830-5.030 EPS. Equities research analysts anticipate that Arrow Electronics, Inc. will post 21.24 earnings per share for the current year. Arrow Electronics announced that its Board of Directors has initiated a stock buyback program on Wednesday, May 13th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the technology company to reacquire up to 9.7% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s leadership believes its stock is undervalued.
Key Arrow Electronics News Here are the key news stories impacting Arrow Electronics this week:
Positive Sentiment: Analysts tracked by American Banking News assign Arrow Electronics an average price target of $233.25, implying meaningful upside from recent trading levels. Arrow Electronics Receives $233.25 Average Price Target from Analysts Positive Sentiment: Zacks Research raised its Arrow Electronics EPS forecasts across multiple periods, including FY2026 to $20.41 from $17.19, FY2027 to $20.08 from $16.22, and FY2028 to $19.28 from $15.33. The firm also lifted estimates for several quarterly periods, including Q3 2026 to $5.01 from $3.25 and Q3 2027 to $5.05 from $3.21. Neutral Sentiment: Zacks Research maintained a Hold rating, suggesting that the higher earnings forecasts have not yet prompted the analyst to view ARW as an outright buy. The current-year consensus EPS estimate is approximately $20.44, broadly in line with Zacks’ revised FY2026 forecast. Negative Sentiment: The stock’s decline may reflect valuation and momentum concerns following a strong run toward its 12-month high of $237.33. Investors may also be weighing the fact that Zacks’ longer-term FY2028 estimate of $19.28 is below its FY2027 forecast, despite the upward revisions. Wall Street Analysts Forecast Growth Several analysts recently issued reports on the stock. Bank of America raised shares of Arrow Electronics from an “underperform” rating to a “neutral” rating and lifted their price target for the company from $122.00 to $233.00 in a research report on Wednesday, May 13th. Wall Street Zen raised Arrow Electronics from a “buy” rating to a “strong-buy” rating in a research report on Saturday, July 25th. Truist Financial dropped their price target on Arrow Electronics from $260.00 to $250.00 and set a “buy” rating on the stock in a report on Friday, August 7th. Weiss Ratings reissued a “buy (b-)” rating on shares of Arrow Electronics in a research report on Friday, August 21st. Finally, Zacks Research downgraded Arrow Electronics from a “strong-buy” rating to a “hold” rating in a research note on Monday, August 3rd. Three equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $233.25.
Check Out Our Latest Stock Analysis on ARW
(Free Report)
Arrow Electronics (NYSE: ARW) is a global provider of products, services and solutions to industrial and commercial users of electronic components and enterprise computing solutions. The company offers a broad portfolio of semiconductors, passives, connectors, electromechanical devices and embedded solutions, serving customers across diverse end markets including automotive, communications, computing, aerospace, defense and healthcare. Through its extensive supplier relationships, Arrow enables design engineers to identify and procure components required for the development of new electronic systems and devices.
In addition to component distribution, Arrow delivers value-added services such as design engineering support, supply chain management, global logistics and technical training.
Read More Five stocks we like better than Arrow Electronics Strike a Balance Between Growth and Stability With These 3 Names Ready to Rally Rubrik’s AI Security Bet Could Power the Next Leg Higher Apple’s Foldable iPhone Could Be a Catalyst, But Not a Cure-All Snowflake Is Up Nearly 50% in 2026—What Are Short Sellers Betting Against? Want to see what other hedge funds are holding ARW? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Arrow Electronics, Inc. (NYSE:ARW – Free Report).
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Key Takeaways CNC, ADM, AVT, ARW and AMN made the broker-focused screen amid persistent Iran-U.S. tensions. The screen targets net analyst upgrades, rising earnings estimates and low price-to-sales ratios.AVT's fiscal 2027 sales and EPS estimates imply 24% and 84.3% year-over-year growth, respectively. There seems to be no end in sight as far as the tensions between Iran and the United States are concerned. The United States has threatened to impose new sanctions that aim to block all potential sources of revenues for Iran. Oil prices have been surging once again on fears that the Middle East crisis could continue for a longer period.
Moreover, the weak July jobs data has reduced the likelihood of the Fed raising interest rates at its September meeting to curb the stubborn inflation in the United States. However, higher oil prices could lead to a further spike in inflation, which will compel the Fed to hike interest rates.
This uncertain environment has made it increasingly difficult for individual investors to construct a stock portfolio that consistently delivers strong performance. Choosing the wrong stocks can hurt returns and compromise the objective of growing hard-earned savings in an inherently unpredictable market.
So, how should investors navigate these conditions? One strategy is to follow broker recommendations and monitor broker-favored stocks such as Centene Corporation (CNC - Free Report) , Archer-Daniels-Midland Company (ADM - Free Report) , Avnet (AVT - Free Report) , Arrow Electronics (ARW - Free Report) and AMN Healthcare Services (AMN - Free Report) .
To identify promising opportunities, we have developed a screening strategy that focuses on stocks benefiting from improved analyst ratings and upward earnings estimate revisions over the past four weeks. In addition, the price-to-sales (P/S) ratio has been incorporated as a complementary valuation measure, given its effectiveness alongside broker insights. By emphasizing a company’s revenue performance, the P/S ratio helps create a more balanced and comprehensive investment approach.
Screening Parameters # (Up- Down Rating)/ Total (4 weeks) =Top #75 (This gives the list of top 75 companies that have witnessed net upgrades over the last 4 weeks).
% change in Q (1) est. (4 weeks) = Top #10 (This gives the top 10 stocks that have witnessed earnings estimate revisions over the past 4 weeks for the upcoming quarter).
Price-to-Sales = Bot%10 (The lower the ratio, the better. Companies meeting this criterion are in the bottom 10% of our universe of over 7,700 stocks concerning this ratio).
Current Price greater than 5 (as a stock trading below $5 is unlikely to create significant interest for most investors).
Average Daily Volume greater than 100,000 shares over the last 20 trading days (Volume has to be significant to ensure that these are easily traded).
Market value ($ mil) = Top #3000 (This gives us stocks that are the top 3000 in terms of market capitalization).
Com/ADR/Canadian= Com (This eliminates the ADR and Canadian stocks).
Here are five of the 10 stocks that made it through the screen:
Centene Corporation is a well-diversified healthcare company that primarily provides services to government-sponsored healthcare programs, while also serving underinsured and uninsured individuals through member-focused services.
CNC is also engaged in providing education and outreach programs to inform and assist members in accessing quality, appropriate healthcare services. Centene operates a capitated managed-care model, under which it receives a fixed payment per member per month from government programs such as Medicaid, Medicare and ACA Marketplace plans. The company, currently sporting a Zacks Rank #1 (Strong Buy), beat the Zacks Consensus Estimate for earnings in each of the last four quarters. The average beat is 157.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
ArcherDaniels is strengthening its presence in food innovation through investments in natural ingredients, plant proteins and emerging production technologies. The company is expanding its natural-colors footprint as food manufacturers move from artificial to natural ingredients. ADM has already signed contracts to convert artificial red, yellow, and orange shades to natural alternatives across a packaged-food line and flavored beverages.
Precision fermentation represents another area of development for this Zacks Rank #1 company. Archer Daniels is also planning at least one natural color produced through precision fermentation. The company beat the Zacks Consensus Estimate for earnings in each of the last four quarters. The average beat is 11.3%.
Avnet is one of the world’s largest distributors of electronic components and computer products. Broader demand, value-added mix, Farnell recovery, operating leverage, working-capital discipline and deleveraging support Avnet’s earnings and shareholder returns over time.
The Zacks Consensus Estimate for AVT’s fiscal 2027 sales and EPS implies year-over-year growth of 24% and 84.3%, respectively. Avnet currently sports a Zacks Rank #1.
Arrow Electronics is well positioned to benefit from demand across electronic components and enterprise computing solutions, supported by its role as a key distribution partner, strong engineering services and expertise in high-performance computing.
Its diversified customer base across industries and geographies reduces concentration risk, while digital capabilities, value-added offerings and disciplined capital allocation strengthen customer relationships, improve operating efficiency and financial flexibility. The company, currently sporting a Zacks Rank #1, outpaced the Zacks Consensus Estimate for earnings in each of the last four quarters. The average beat is 34.4%.
AMN Healthcare Services, a leader and innovator in total talent solutions for healthcare, carries a Zacks Rank #3 (Hold) presently. The company has a trailing four-quarter earnings surprise of 96.6%, on average.
Shares of AMN have surged 119% year to date. Changes in demand for healthcare services, particularly at acute care hospitals and other inpatient facilities, continue to boost demand for AMN Healthcare’s services. The company’s business is supported by long-term structural drivers, including population growth, aging demographics and the increasing complexity of care delivery.
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Arrow Electronics (ARW - Free Report) . ARW is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.44 right now. For comparison, its industry sports an average P/E of 12.22. Over the past 52 weeks, ARW's Forward P/E has been as high as 11.05 and as low as 8.04, with a median of 9.71.
ARW is also sporting a PEG ratio of 0.46. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ARW's PEG compares to its industry's average PEG of 0.47. Over the last 12 months, ARW's PEG has been as high as 0.55 and as low as 0.40, with a median of 0.49.
We should also highlight that ARW has a P/B ratio of 0.98. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. ARW's current P/B looks attractive when compared to its industry's average P/B of 2.02. Within the past 52 weeks, ARW's P/B has been as high as 1.22 and as low as 0.78, with a median of 1.02.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ARW has a P/S ratio of 0.29. This compares to its industry's average P/S of 0.49.
Finally, our model also underscores that ARW has a P/CF ratio of 9.63. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.95. Over the past 52 weeks, ARW's P/CF has been as high as 11.55 and as low as 8.13, with a median of 10.03.
Value investors will likely look at more than just these metrics, but the above data helps show that Arrow Electronics is likely undervalued currently. And when considering the strength of its earnings outlook, ARW sticks out as one of the market's strongest value stocks.
Key Takeaways Four value stocks qualified the screen using low P/CF and other valuation criteria.Avnet's sales and EPS estimates indicate growth of 23.5% and 84.3% from the year-ago period.Invesco's current financial-year sales and EPS estimates suggest growth of 15.4% and 38.9% The U.S. equity market stayed largely subdued as investors assessed fresh inflation data signaling continued price pressures. The Personal Consumption Expenditures price index, a key measure policymakers track, rose 0.2% in July from the prior month, putting annual inflation at 3.7%. The reading suggested that inflation has not yet returned to levels that would provide greater confidence in a meaningful shift in monetary policy, keeping investors cautious.
Major indexes reflected a restrained trading environment, with the S&P 500 ending nearly unchanged at 7,675.70. The Nasdaq Composite edged lower by 0.08% to close at 26,130.20, while the Dow Jones Industrial Average declined 113.52 points, or 0.21%, finishing at 53,463.88. The limited movement across benchmarks indicated that investors were balancing persistent inflation concerns with expectations about the broader economic outlook and potential implications for interest rate decisions.
Against this backdrop, value stocks may present an attractive opportunity for investors seeking exposure to fundamentally strong companies trading at reasonable valuations. If investor sentiment improves and market participants increasingly focus on underlying business performance, undervalued companies could benefit from potential valuation re-rating, creating opportunities for long-term capital appreciation.
When evaluating value stocks, one of the most effective valuation metrics is the Price-to-Cash Flow (P/CF) ratio. This metric measures a stock's market price relative to the cash flow the company generates on a per-share basis. A lower P/CF ratio indicates that the stock is trading at a better value, offering strong cash generation potential relative to its price. Companies — Avnet, Inc. (AVT - Free Report) , Lifetime Brands, Inc. (LCUT - Free Report) , Arrow Electronics, Inc. (ARW - Free Report) and Invesco Ltd. (IVZ - Free Report) — boast a low P/CF ratio.
Price to Cash Flow Reflects Financial HealthYou must be wondering why we consider the P/CF valuation metric when the most widely used valuation metric is Price/Earnings (or P/E). An important factor that makes P/CF a highly dependable metric is that operating cash flow adds back non-cash charges such as depreciation and amortization to net income, truly diagnosing a company’s financial health.
Analysts caution that a company’s earnings are subject to accounting estimates and management manipulation. Then again, cash flow is quite reliable. Net cash flow unveils how much money a company generates and how effectively management is deploying the same.
Positive cash flow indicates an increase in the company’s liquid assets. This gives the company the means to settle debt, meet its expenses, reinvest in the business, endure downturns and finally undertake shareholder-friendly moves. Negative cash flow implies a decline in the company’s liquidity, which lowers its flexibility to support these endeavors.
What’s the Best Value Investing Strategy?An investment decision based solely on the P/CF metric may not yield the desired results. To identify stocks that are trading at a discount, you should expand your search criteria and also consider the price-to-book ratio, price-to-earnings ratio and price-to-sales ratio. Adding a favorable Zacks Rank and a Value Score of A or B to your search criteria should lead to even better results as these eliminate the chance of falling into a value trap.
Here are the parameters for selecting true-value stocks:
P/CF less than or equal to X-Industry Median.
Price greater than or equal to 5: The stocks must all be trading at a minimum of $5 or higher.
Average 20-Day Volume greater than 100,000: A substantial trading volume ensures that the stock is easily tradable.
P/E using (F1) less than or equal to X-Industry Median: This parameter shortlists stocks that are trading at a discount or are equal to their peers.
P/B less than or equal to X-Industry Median: A lower P/B compared with the industry average implies that there is enough room for the stock to gain.
P/S less than or equal to X-Industry Median: The P/S ratio determines how a stock price compares to the company’s sales — the lower the ratio, the more attractive the stock is.
PEG less than 1: The ratio is used to determine a stock's value by taking the company's earnings growth into account. The PEG ratio gives a more complete picture than the P/E ratio. A value of less than 1 indicates that the stock is undervalued and that investors need to pay less for a stock that has robust earnings growth prospects.
Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.
Value Score of less than or equal to B: Our research shows that stocks with a Style Score of A or B when combined with a Zacks Rank #1 or 2 offer the best upside potential.
Here are four out of the 20 value stocks that qualified the screening:
Avnet, a leading global technology distributor and solutions provider, sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 13.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Avnet’s current financial-year sales and EPS indicates growth of 23.5% and 84.3%, respectively, from the year-ago period. AVT has a Value Score of A.
Lifetime Brands, a leading global provider of branded kitchenware, tableware and other products, sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 271.1%, on average.
The Zacks Consensus Estimate for Lifetime Brands’ current financial-year sales and EPS calls for growth of 4.4% and 156.8%, respectively, from the year-ago period. LCUT has a Value Score of A.
Arrow Electronics sources and engineers technology solutions for thousands of leading manufacturers and service providers. The stock sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 34.4%, on average.
The Zacks Consensus Estimate for Arrow Electronics’ current financial-year sales and EPS implies growth of 22.2% and 85.5%, respectively, from the year-ago period. ARW has a Value Score of A.
Invesco, a leading global asset management firm, sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 12.5%, on average.
The Zacks Consensus Estimate for Invesco’s current financial-year sales and EPS suggests growth of 15.4% and 38.9%, respectively, from the year-ago period. IVZ has a Value Score of B.
BlackRock Inc. acquired a new position in Arrow Electronics, Inc. (NYSE:ARW – Free Report) during the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor acquired 5,016,324 shares of the technology company’s stock, valued at approximately $1,070,534,000. BlackRock Inc. owned 9.81% of Arrow Electronics at the end of the most recent reporting period.
Several other institutional investors also recently bought and sold shares of the stock. Vanguard Group Inc. raised its position in Arrow Electronics by 0.6% during the fourth quarter. Vanguard Group Inc. now owns 6,122,857 shares of the technology company’s stock worth $674,616,000 after acquiring an additional 37,417 shares during the period. ACR Alpine Capital Research LLC boosted its holdings in shares of Arrow Electronics by 3.9% during the 1st quarter. ACR Alpine Capital Research LLC now owns 3,578,313 shares of the technology company’s stock worth $513,166,000 after purchasing an additional 132,720 shares during the last quarter. AQR Capital Management LLC grew its holdings in Arrow Electronics by 37.7% in the 3rd quarter. AQR Capital Management LLC now owns 3,185,582 shares of the technology company’s stock valued at $384,818,000 after buying an additional 871,585 shares in the last quarter. Dimensional Fund Advisors LP grew its holdings in shares of Arrow Electronics by 0.4% in the first quarter. Dimensional Fund Advisors LP now owns 3,007,509 shares of the technology company’s stock valued at $431,280,000 after purchasing an additional 11,894 shares during the period. Finally, FIL Ltd increased its position in Arrow Electronics by 33.8% during the fourth quarter. FIL Ltd now owns 1,231,833 shares of the technology company’s stock worth $135,723,000 after purchasing an additional 310,936 shares during the last quarter. 99.34% of the stock is currently owned by hedge funds and other institutional investors.
Analysts Set New Price Targets Several equities analysts have recently commented on the company. Wells Fargo & Company upped their price target on Arrow Electronics from $175.00 to $200.00 and gave the company an “underweight” rating in a research note on Friday, August 7th. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Arrow Electronics in a research report on Tuesday, May 26th. Raymond James Financial reaffirmed an “outperform” rating and set a $250.00 target price on shares of Arrow Electronics in a research note on Friday, August 7th. Bank of America raised shares of Arrow Electronics from an “underperform” rating to a “neutral” rating and boosted their price target for the company from $122.00 to $233.00 in a research note on Wednesday, May 13th. Finally, Wall Street Zen upgraded shares of Arrow Electronics from a “buy” rating to a “strong-buy” rating in a report on Saturday, July 25th. Three investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, Arrow Electronics presently has a consensus rating of “Hold” and an average target price of $233.25.
Check Out Our Latest Research Report on Arrow Electronics Arrow Electronics Stock Performance NYSE:ARW opened at $210.98 on Friday. The firm’s fifty day moving average price is $213.28 and its 200 day moving average price is $186.80. Arrow Electronics, Inc. has a 1-year low of $101.79 and a 1-year high of $237.33. The company has a debt-to-equity ratio of 0.29, a current ratio of 1.22 and a quick ratio of 1.01. The firm has a market cap of $10.74 billion, a price-to-earnings ratio of 13.48, a price-to-earnings-growth ratio of 0.32 and a beta of 1.20.
Arrow Electronics (NYSE:ARW – Get Free Report) last released its earnings results on Thursday, August 6th. The technology company reported $5.45 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.45 by $1.00. The company had revenue of $9.99 billion for the quarter, compared to analysts’ expectations of $9.67 billion. Arrow Electronics had a return on equity of 13.41% and a net margin of 2.26%.The firm’s quarterly revenue was up 31.8% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.43 EPS. Arrow Electronics has set its Q3 2026 guidance at 4.830-5.030 EPS. On average, sell-side analysts expect that Arrow Electronics, Inc. will post 20.44 EPS for the current year.
Arrow Electronics announced that its board has approved a share repurchase program on Wednesday, May 13th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the technology company to buy up to 9.7% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s management believes its stock is undervalued.
Arrow Electronics Profile (Free Report)
Arrow Electronics (NYSE: ARW) is a global provider of products, services and solutions to industrial and commercial users of electronic components and enterprise computing solutions. The company offers a broad portfolio of semiconductors, passives, connectors, electromechanical devices and embedded solutions, serving customers across diverse end markets including automotive, communications, computing, aerospace, defense and healthcare. Through its extensive supplier relationships, Arrow enables design engineers to identify and procure components required for the development of new electronic systems and devices.
In addition to component distribution, Arrow delivers value-added services such as design engineering support, supply chain management, global logistics and technical training.
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Arrow Electronics (ARW - Free Report) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.
The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this electronics maker, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Arrow Electronics, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate RevisionsThe company is expected to earn $4.39 per share for the current quarter, which represents a year-over-year change of +82.2%.
The Zacks Consensus Estimate for Arrow Electronics has increased 11.51% over the last 30 days, as one estimate has gone higher compared to no negative revisions.
Current-Year Estimate RevisionsFor the full year, the company is expected to earn $20.44 per share, representing a year-over-year change of +85.5%.
The revisions trend for the current year also appears quite promising for Arrow Electronics, with three estimates moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 6.72%.
Favorable Zacks RankThe promising estimate revisions have helped Arrow Electronics earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom LineInvestors have been betting on Arrow Electronics because of its solid estimate revisions, as evident from the stock's 7.2% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.
CENTENNIAL, Colo.--(BUSINESS WIRE)--Arrow Electronics expands its IBM European distribution agreement to include Bulgaria, Croatia, Czech Republic, Germany, Slovakia, Slovenia, Ukraine.
Handelsbanken Fonder AB cut its stake in Arrow Electronics, Inc. (NYSE: ARW) by 12.6% during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 16,600 shares of the technology company's stock after selling 2,400 shares during the quarter. Handelsbanken Fonder AB's holdings in
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Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
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Stock to Watch: Arrow Electronics (ARW - Free Report) New York-based Arrow Electronics Inc. is one of the world’s largest distributors of electronic components and enterprise computing products. Arrow provides one of the broadest product ranges in the electronic components and enterprise computing solutions distribution industries. Along with these, the company provides a wide range of value-added services to help customers reduce their marketing time, lower the total cost of ownership, introduce innovative products through demand creation opportunities and enhance their overall competitiveness.
ARW is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 10.24; value investors should take notice.
Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $1.29 to $20.44 per share. ARW boasts an average earnings surprise of +34.4%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, ARW should be on investors' short list.
Investors in Arrow Electronics, Inc. (ARW - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Sep 18, 2026 $135 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for Arrow Electronics shares, but what is the fundamental picture for the company? Currently, Arrow Electronics is a Zacks Rank #1 (Strong Buy) in the Electronics - Parts Distribution industry that ranks in the Top 1% of our Zacks Industry Rank. Over the last 30 days, one analyst has increased the earnings estimate for the current quarter, while none have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from $3.94 per share to $4.39 in that period.
Given the way analysts feel about Arrow Electronics right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Arrow Electronics (ARW - Free Report) is a stock many investors are watching right now. ARW is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 9.44, while its industry has an average P/E of 14.15. ARW's Forward P/E has been as high as 11.05 and as low as 8.04, with a median of 9.71, all within the past year.
We also note that ARW holds a PEG ratio of 0.46. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ARW's PEG compares to its industry's average PEG of 0.47. Over the past 52 weeks, ARW's PEG has been as high as 0.55 and as low as 0.40, with a median of 0.49.
Another notable valuation metric for ARW is its P/B ratio of 0.98. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.14. Within the past 52 weeks, ARW's P/B has been as high as 1.22 and as low as 0.78, with a median of 1.02.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ARW has a P/S ratio of 0.29. This compares to its industry's average P/S of 0.5.
Finally, investors should note that ARW has a P/CF ratio of 9.63. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. ARW's P/CF compares to its industry's average P/CF of 16.90. Over the past 52 weeks, ARW's P/CF has been as high as 11.55 and as low as 8.13, with a median of 10.03.
These are only a few of the key metrics included in Arrow Electronics's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ARW looks like an impressive value stock at the moment.
Have you evaluated the performance of Arrow Electronics' (ARW - Free Report) international operations during the quarter that concluded in June 2026? Considering the extensive worldwide presence of this electronics maker, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.
The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.
Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.
While analyzing ARW's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.
The company's total revenue for the quarter amounted to $9.99 billion, showing rise of 31.8%. We will now explore the breakdown of ARW's overseas revenue to assess the impact of its international operations.
A Closer Look at ARW's Revenue Streams AbroadAsia Pacific generated $2.97 billion in revenues for the company in the last quarter, constituting 29.8% of the total. This represented a surprise of +5.42% compared to the $2.82 billion projected by Wall Street analysts. Comparatively, in the previous quarter, Asia Pacific accounted for $2.56 billion (27.1%), and in the year-ago quarter, it contributed $2.15 billion (28.4%) to the total revenue.
During the quarter, EMEA contributed $3.43 billion in revenue, making up 34.3% of the total revenue. When compared to the consensus estimate of $3.27 billion, this meant a surprise of +5.05%. Looking back, EMEA contributed $3.41 billion, or 36%, in the previous quarter, and $2.67 billion, or 35.2%, in the same quarter of the previous year.
Revenue Forecasts for the International MarketsWall Street analysts expect Arrow Electronics to report $8.76 billion in total revenue for the current fiscal quarter, indicating an increase of 13.6% from the year-ago quarter. Asia Pacific and EMEA are expected to contribute 31.7% (translating to $2.78 billion), and 38% ($3.33 billion) to the total revenue, respectively.
For the full year, the company is projected to achieve a total revenue of $37.06 billion, which signifies a rise of 20.1% from the last year. The share of this revenue from various regions is expected to be: Asia Pacific at 29.3% ($10.85 billion), and EMEA at 37.3% ($13.81 billion).
Closing RemarksArrow Electronics' leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.
In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.
Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.
The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.
Currently, Arrow Electronics holds a Zacks Rank #3 (Hold), signifying its potential to match the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Exploring Recent Trends in Stock PriceOver the preceding four weeks, the stock's value has diminished by 1.4%, against an upturn of 3.4% in the Zacks S&P 500 composite. In parallel, the Zacks Computer and Technology sector, which counts Arrow Electronics among its entities, has appreciated by 2.8%. Over the past three months, the company's shares have seen a decline of 2.3% versus the S&P 500's 6% increase. The sector overall has witnessed an increase of 3% over the same period.
Assenagon Asset Management S.A. increased its stake in shares of Arrow Electronics, Inc. (NYSE:ARW – Free Report) by 307.9% during the second quarter, according to its most recent filing with the SEC. The institutional investor owned 220,920 shares of the technology company’s stock after purchasing an additional 166,762 shares during the period. Assenagon Asset Management S.A. owned 0.43% of Arrow Electronics worth $47,147,000 as of its most recent SEC filing.
Other hedge funds have also added to or reduced their stakes in the company. ACR Alpine Capital Research LLC increased its position in shares of Arrow Electronics by 42.6% during the fourth quarter. ACR Alpine Capital Research LLC now owns 3,445,593 shares of the technology company’s stock valued at $379,635,000 after buying an additional 1,028,778 shares during the period. AQR Capital Management LLC boosted its position in shares of Arrow Electronics by 37.7% in the third quarter. AQR Capital Management LLC now owns 3,185,582 shares of the technology company’s stock valued at $384,818,000 after acquiring an additional 871,585 shares during the period. Brandes Investment Partners LP boosted its position in shares of Arrow Electronics by 1,412.3% in the fourth quarter. Brandes Investment Partners LP now owns 409,461 shares of the technology company’s stock valued at $45,115,000 after acquiring an additional 382,385 shares during the period. FIL Ltd grew its stake in Arrow Electronics by 33.8% during the fourth quarter. FIL Ltd now owns 1,231,833 shares of the technology company’s stock valued at $135,723,000 after acquiring an additional 310,936 shares in the last quarter. Finally, Alyeska Investment Group L.P. purchased a new position in Arrow Electronics during the fourth quarter valued at approximately $29,255,000. Hedge funds and other institutional investors own 99.34% of the company’s stock.
Insider Activity at Arrow Electronics In other Arrow Electronics news, insider Eric Nowak sold 3,473 shares of Arrow Electronics stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $210.99, for a total transaction of $732,768.27. Following the sale, the insider directly owned 48,835 shares of the company’s stock, valued at approximately $10,303,696.65. The trade was a 6.64% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, SVP Carine Lamercie Jean-Claude sold 3,000 shares of the stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $216.00, for a total value of $648,000.00. Following the completion of the transaction, the senior vice president directly owned 12,626 shares of the company’s stock, valued at $2,727,216. This represents a 19.20% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 0.80% of the company’s stock.
Arrow Electronics Stock Down 8.4% Shares of NYSE ARW opened at $203.51 on Friday. The firm’s fifty day moving average is $215.78 and its 200 day moving average is $180.65. Arrow Electronics, Inc. has a 52 week low of $101.79 and a 52 week high of $237.33. The company has a quick ratio of 1.02, a current ratio of 1.24 and a debt-to-equity ratio of 0.35. The company has a market cap of $10.41 billion, a price-to-earnings ratio of 13.00 and a beta of 1.20.
Arrow Electronics (NYSE:ARW – Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The technology company reported $5.45 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.45 by $1.00. Arrow Electronics had a net margin of 2.26% and a return on equity of 13.63%. The business had revenue of $9.99 billion for the quarter, compared to analyst estimates of $9.67 billion. During the same quarter last year, the firm earned $2.43 EPS. The company’s revenue was up 31.8% on a year-over-year basis. Arrow Electronics has set its Q3 2026 guidance at 4.830-5.030 EPS. On average, equities research analysts expect that Arrow Electronics, Inc. will post 19.15 earnings per share for the current year.
Arrow Electronics declared that its Board of Directors has authorized a stock repurchase plan on Wednesday, May 13th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the technology company to repurchase up to 9.7% of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s board of directors believes its shares are undervalued.
Key Arrow Electronics News Here are the key news stories impacting Arrow Electronics this week:
Positive Sentiment: Second-quarter results exceeded expectations: Arrow reported adjusted EPS of $5.45 versus the $4.45 consensus estimate, while revenue rose 31.8% year over year to $9.99 billion, above forecasts. Arrow Electronics Q2 Earnings Beat Estimates, Revenues Rise Y/Y Positive Sentiment: Demand and backlog trends remain encouraging: Management cited broadening demand in Global Components, including AI, aerospace and industrial markets. Book-to-bill remained above 1, with backlog extending into the first half of 2027. Arrow Q2 Earnings Call Signals More Runway in Components Positive Sentiment: Capital allocation and analyst support provided offsets: A new share-repurchase plan, lower debt and margin-expansion commentary support the investment case. Truist maintained a Buy rating with a $250 price target, implying meaningful potential upside from recent trading levels. Truist raises Arrow Electronics price target Neutral Sentiment: Leadership change: Arrow appointed Deidra C. Merriwether as president and chief operating officer. The change could support execution, but investors may await more details on her priorities and expected impact. Arrow Electronics Appoints Deidra C. Merriwether Negative Sentiment: Third-quarter guidance implies sequential earnings moderation: Arrow forecast non-GAAP EPS of $4.83–$5.03 and revenue of $9.6–$10.2 billion. Although above consensus, the EPS outlook is below the latest quarter’s result, and investors appeared to expect a larger upgrade after the stock’s strong run. Negative Sentiment: Margin concerns persist: Partner restructuring charges continued to weigh on Enterprise Computing Solutions, while management acknowledged remaining pressure in parts of the business. Negative Sentiment: Insider selling may have added pressure: Quiver Quantitative reported 14 insider sales and no purchases during the past six months. Institutional positioning was mixed, with several large funds reducing their holdings. Analyst Ratings Changes Several research firms recently issued reports on ARW. Raymond James Financial reissued an “outperform” rating and set a $250.00 price objective on shares of Arrow Electronics in a research note on Friday. Truist Financial cut their price objective on Arrow Electronics from $260.00 to $250.00 and set a “buy” rating for the company in a report on Friday. Zacks Research cut shares of Arrow Electronics from a “strong-buy” rating to a “hold” rating in a research report on Monday, August 3rd. Bank of America raised shares of Arrow Electronics from an “underperform” rating to a “neutral” rating and raised their target price for the company from $122.00 to $233.00 in a research note on Wednesday, May 13th. Finally, Wells Fargo & Company lifted their price objective on shares of Arrow Electronics from $175.00 to $200.00 and gave the stock an “underweight” rating in a report on Friday. Three research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $233.25.
Get Our Latest Stock Analysis on ARW
About Arrow Electronics (Free Report)
Arrow Electronics (NYSE: ARW) is a global provider of products, services and solutions to industrial and commercial users of electronic components and enterprise computing solutions. The company offers a broad portfolio of semiconductors, passives, connectors, electromechanical devices and embedded solutions, serving customers across diverse end markets including automotive, communications, computing, aerospace, defense and healthcare. Through its extensive supplier relationships, Arrow enables design engineers to identify and procure components required for the development of new electronic systems and devices.
In addition to component distribution, Arrow delivers value-added services such as design engineering support, supply chain management, global logistics and technical training.
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Arrow Electronics NYSE: ARW reported second-quarter 2026 revenue of $10 billion, up 32% from a year earlier and 30% on a constant-currency basis, as broad-based demand, higher unit volumes, price inflation and value-added services supported growth across its businesses.
Non-GAAP diluted earnings per share rose 124% year over year to $5.45, exceeding the company’s guidance range. Non-GAAP operating income increased $188 million to $403 million, while operating margin expanded 120 basis points to 4% of sales.
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Interim President and Chief Executive Officer Bill Austen said the results reflected “broad-based demand, disciplined execution, and positive operating leverage.” He cited sustained unit-volume growth, expense and working-capital management, favorable mix and supply-chain services as key contributors.
Global Components Demand Builds Arrow’s Global Components segment generated $7.4 billion in second-quarter sales, up $726 million sequentially, or 11% from the prior quarter. Segment non-GAAP operating income rose $32 million sequentially to $397 million. Operating margin was 5.4%, down 10 basis points sequentially but up 180 basis points from a year earlier.
Chief Financial Officer Raj Agrawal said book-to-bill ratios increased and remained above one in each of the company’s three regions, while backlog continued to build into the first half of 2027. He said approximately one-third of Global Components’ sequential revenue growth came from price inflation, with customer unit demand accounting for the remainder.
Growth was broad-based across geographies, verticals and customer segments, according to the company. Arrow identified aerospace and defense, industrial and transportation as its three largest Global Components verticals globally. Sales in the Americas were supported by aerospace and defense, industrial and transportation; EMEA was supported by transportation and aerospace and defense; and Asia benefited from industrial, transportation and data-center computing demand.
Rick Marano, president of Global Components, said the company views the market recovery as still being in its early stages. He distinguished between AI, which he described as an evolving market rather than a recovery, military and aerospace activity, and the company’s core distribution business.
Marano also said Arrow was seeing customers restore buffer inventory, but characterized the activity as disciplined rather than excessive. “I don’t see anything irrational from that perspective,” he said, adding that the company was not seeing panic-driven pre-positioning of inventory.
Interconnect, passive and electromechanical components, or IP&E, exceeded $1 billion in sales for the second consecutive quarter. Memory represented a low double-digit percentage of Global Components revenue, Agrawal said.
ECS Sales Rise, Though Contract Charge Pressures Margin Global Enterprise Computing Solutions, or ECS, recorded second-quarter sales of $2.6 billion, an increase of $332 million, or 14%, from a year earlier. On a constant-currency basis, ECS sales rose 13%. Total ECS billings increased 14% to $5.9 billion, while backlog climbed more than 75% year over year to an all-time high.
Arrow said it saw demand across cloud, cybersecurity, data protection, data intelligence and infrastructure software. The company said on-premise storage and compute hardware remained constrained by limited supply, primarily due to memory and SSD shortages, which supported demand for software and public-cloud alternatives offered through its ArrowSphere platform.
ECS non-GAAP operating margin declined 100 basis points year over year after Arrow recorded a charge tied to underperforming multiyear contracts with one partner. Agrawal said the charge totaled $27 million and that ECS margins would have been above 4% without it.
The company terminated one key element of a beyond-distribution agreement with the partner and is working to restructure another element. Agrawal said Arrow expects additional charges in the second half of the year, though at a lower pace than in the second quarter. He added that the company still expects ECS to show its typically strong fourth-quarter margin profile as higher volumes leverage operating expenses.
During the question-and-answer session, Eric Nowak, president of ECS, said a mutually agreed contract loss would have no impact on ECS revenue, margins or profits. Austen said reports that the business involved $1.4 billion in revenue were inaccurate, placing the amount at roughly $700 million in revenue to Arrow.
Cash Flow, Debt and Outlook Cash flow from operating activities was $318 million in the quarter, bringing year-to-date operating cash flow above $1 billion. Net working capital declined by about $100 million sequentially to $6.8 billion, while inventory increased $217 million to $5.9 billion.
Gross debt fell about $300 million from the prior quarter and about $650 million from a year earlier to $2.2 billion. Arrow’s adjusted leverage ratio improved to 1.75 times. The company repurchased $43 million of shares during the quarter.
For the third quarter, Arrow forecast total sales of $9.6 billion to $10.2 billion and non-GAAP diluted EPS of $4.83 to $5.03. At the midpoint, the sales outlook implies 28% year-over-year growth.
Global Components sales are expected to be $7.5 billion to $7.9 billion, representing 5% sequential growth at the midpoint. ECS sales are expected to be $2.1 billion to $2.3 billion, up 2% year over year at the midpoint. Arrow expects a non-GAAP tax rate of 23% to 25% and interest expense of about $50 million. Agrawal said Global Components is expected to perform at or above seasonal trends in all regions through the rest of the year, although Asia is expected to be seasonally strong in the third quarter while EMEA is typically weaker. He also said supply-chain services profit is expected to return to more normal levels in the third quarter.
Austen also announced that Dee Merriwether will join Arrow as president and chief operating officer in early September. Austen said he will remain interim CEO until the board completes its succession-planning process and appoints a permanent chief executive.
About Arrow Electronics (NYSE:ARW)Arrow Electronics NYSE: ARW is a global provider of products, services and solutions to industrial and commercial users of electronic components and enterprise computing solutions. The company offers a broad portfolio of semiconductors, passives, connectors, electromechanical devices and embedded solutions, serving customers across diverse end markets including automotive, communications, computing, aerospace, defense and healthcare. Through its extensive supplier relationships, Arrow enables design engineers to identify and procure components required for the development of new electronic systems and devices.
In addition to component distribution, Arrow delivers value-added services such as design engineering support, supply chain management, global logistics and technical training.
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Key Takeaways ARW's Q2 components sales rose 39% to $7.37B as unit demand led growth and operating leverage improved.Book-to-bill ratios are well above 1 across all regions, with backlog building into first-half 2027.Components recovery remains in the second inning, with broad demand and core growth holding steady. Arrow Electronics, Inc. (ARW - Free Report) used its second-quarter 2026 earnings call to emphasize that the recovery in electronic components remains in its early stages, supported by broadening demand, rising book-to-bill ratios and backlog extending into 2027.
Management also highlighted improving operating leverage and higher-value services while addressing questions around ECS margins, supplier relationships and the durability of demand.
ARW Sees Components Recovery in Early InningsInterim president and CEO William Austen characterized the Components recovery as being around the second inning, signaling management sees substantial runway remaining.
Global Components president Richard Marano separated the opportunity into AI, aerospace and defense, and core business recovery. He said core growth remains steady, with strong indicators and a growing backlog.
The backdrop supported Global Components' sales growth of 39% year over year to $7.37 billion. Management said unit demand remained the primary growth driver, while price inflation accounted for roughly one-third of sequential segment revenue growth.
Arrow Points to Broad-Based DemandAusten stressed that demand was not concentrated in AI. Industrial, aerospace and defense, and transportation contributed to momentum, while mass-market customers remained in the earlier stages of recovery.
Marano said book-to-bill ratios were well above 1 across all three regions, with backlog building into the first half of 2027. Customer ordering remained normal in size and pace despite some lengthening of lead times.
That demand backdrop helped ARW’s second-quarter consolidated revenues reach $9.99 billion, up 32% year over year and beating the Zacks Consensus Estimate of $9.45 billion. Non-GAAP earnings of $5.45 per share also topped the $4.45 consensus.
Arrow Electronics, Inc. Price, Consensus and EPS SurpriseARW Builds Operating LeverageCFO Rajesh Agrawal said non-GAAP operating margin expanded 120 basis points year over year to 4%, while non-GAAP operating expenses as a percentage of gross profit fell 10.5 percentage points.
Management attributed the earnings improvement to stronger sales volume, value-added services, productivity initiatives and lower interest expense. Supply chain services again made a meaningful contribution to Components profitability.
Agrawal cautioned that supply chain services profits should normalize in the third quarter. Even so, he said he would be surprised if Components margins did not reach 5% again in the period.
Arrow Addresses ECS Margin PressureECS sales rose 14% year over year to $2.63 billion, while backlog increased more than 75% to another record. Management cited strength across cloud, cybersecurity, data protection, data intelligence and infrastructure software.
The segment absorbed a $27 million charge tied to underperforming multiyear arrangements with a strategic partner, reducing ECS margin by 100 basis points. Agrawal expects additional charges in the second half, but at a slower pace.
A BofA Securities analyst pressed management on the margin outlook. Agrawal said fourth-quarter ECS margins should again benefit from substantially higher seasonal volume and operating-expense leverage.
ARW Clarifies Supplier and Inventory RisksA Truist Securities analyst asked about a reported supplier relationship departure. Austen clarified that the associated revenues were roughly $700 million, rather than the reported $1.4 billion.
Global ECS president Eric Nowak said the agreement ended mutually because of differing strategies and that management does not expect an impact on ECS revenues, margins or profits.
A Raymond James analyst also questioned whether customers were rebuilding inventories as lead times extended. Marano said customers were adding normal buffer inventory and providing greater visibility, but management was not seeing panic buying or irrational ordering.
Arrow Keeps Focus on Profitable GrowthFor the third quarter, management expects sales of $9.6 billion to $10.2 billion and non-GAAP earnings of $4.83-$5.03. Global Components sales are projected at $7.5-$7.9 billion, while ECS sales are expected at $2.1-$2.3 billion.
Management’s broader focus remains on disciplined expenses, higher-margin value-added services and investments tied to customer demand and attractive returns. Austen also emphasized continued efforts to improve the quality and durability of earnings.
What Zacks Rank & Style Scores Signal for ARWARW currently carries a Zacks Rank #3 (Hold), indicating a more neutral near-term earnings-revisions signal. Its Value Score of A, Growth Score of B, Momentum Score of B and VGM Score of A reflect favorable characteristics across the Style Score framework.
The Style Scores are designed to complement the Zacks Rank, with A and B representing stronger grades. However, the Zacks framework places greater emphasis on Rank #1 (Strong Buy) and 2 (Buy) stocks when paired with favorable Style Scores. ARW's Zacks Rank can change as analyst estimates are revised following the newly reported results.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways Arrow Electronics beat Q2 earnings and revenue guidance as sales rose 32% year over year.ARW authorized a new $1 billion buyback, with book-to-bill ratios above parity and backlog building.Arrow Electronics expects Q3 sales of $9.6B-$10.2B and non-GAAP EPS of $4.83-$5.03. Arrow Electronics (ARW - Free Report) reported second-quarter 2026 non-GAAP earnings of $5.45 per share, surpassing the company's previously issued guidance of $4.32-$4.52. The bottom line increased 124% year over year and beat the Zacks Consensus Estimate by 22.47%.
In the second quarter, ARW reported revenues of $9.99 billion, which rose 32% year over year and beat the consensus mark by 5.74%. The figure also came in above the company's earlier guided range of $9.15-$9.75 billion. At constant currency, revenues increased 30% year over year. Changes in foreign currencies had a positive impact of $93.5 million on sales and 9 cents on earnings per share compared with the second quarter of 2025.
On a GAAP basis, ARW reported earnings of $5.26 per share, up 47% year over year, while net income attributable to shareholders rose 45% year over year to $273 million. Non-GAAP net income attributable to shareholders was $283 million, up 122% year over year.
ARW's Q2 Revenue DetailsGlobal Components
In the second quarter of 2026, Global Components sales increased 39% year over year on a reported basis and 38% on a constant currency basis to $7.37 billion.
Region-wise, revenues from the Americas increased 44% year over year on a reported basis. EMEA revenues rose 36% year over year on a reported basis and 32% at constant currency. Asia-Pacific revenues increased 38% year over year on a reported basis and 37% at constant currency.
Global Enterprise Computing Solutions (ECS)
Global ECS revenues were $2.63 billion, which increased 14% year over year on a reported basis and 13% at constant currency. Global ECS gross billings rose 14% year over year to $5.86 billion.
Region-wise, the segment's EMEA revenues grew 20% year over year on a reported basis and 17% at constant currency. Americas ECS revenues increased 8% year over year on a reported basis.
ARW's Q2 Operating DetailsThe Global Components segment reported a non-GAAP gross margin of 11.6%, up 40 basis points year over year, while the Global ECS segment's gross margin contracted 100 basis points to 10.2% year over year. Global ECS operating income for the quarter included a $26.6 million loss related to the underperformance of certain non-cancellable multi-year purchase obligations against a 21.7 million loss of the same nature in the first quarter of 2026.
The non-GAAP operating income from Global Components and Global ECS was $397 million and $86 million, respectively. Global Components' non-GAAP operating income increased 110% year over year, while Global ECS' non-GAAP operating income decreased 12% year over year.
Arrow Electronics' non-GAAP operating income rose to $403 million in the second quarter of 2026, up 87% year over year. The non-GAAP operating margin expanded approximately 120 basis points year over year to 4.0%. Within segments, Global Components' non-GAAP operating margin expanded approximately 180 basis points year over year to 5.4%, while Global ECS' non-GAAP operating margin contracted 100 basis points year over year to 3.3%.
Balance Sheet & Cash FlowAs of July 4, 2026, cash and cash equivalents totaled $245 million, down from $287 million as of April 4, 2026.
Long-term debt was $2.05 billion, down from $2.35 billion at the end of the previous quarter.
In the reported quarter, cash flow from operations swung to a positive $318 million compared with cash used for operations of $206 million in the second quarter of 2025, primarily reflecting the timing of cash flows within the company's supply chain services offering.
In the second quarter of 2026, ARW repurchased $43 million of shares.
Significant DevelopmentsDuring the quarter, Arrow's board of directors authorized a new $1 billion share repurchase program, effective May 12, 2026, replacing the company's previous repurchase authorization. Management also pointed to book-to-bill ratios remaining well above parity during the quarter, with backlog continuing to build in both size and duration across the business.
ARW Offers Q3 2026 GuidanceFor the third quarter of 2026, sales are estimated between $9.6 billion and $10.2 billion.
Global Components sales are projected between $7.50 billion and $7.90 billion. Global ECS sales are anticipated to be between $2.10 billion and $2.30 billion.
Interest expenses are expected to be approximately $50 million. The average tax rate is expected to range from 23% to 25%.
ARW anticipates GAAP earnings of $4.72-$4.92 per share and non-GAAP earnings of $4.83-$5.03 per share.
Changes in foreign currencies are expected to decrease sales by approximately $27 million and earnings per share by 1 cent compared to the third quarter of 2025. On a sequential basis, foreign-currency changes are expected to decrease sales by approximately $50 million and earnings per share by 4 cents compared to the second quarter of 2026.
Zacks Rank & Stocks to ConsiderArrow Electronics currently carries a Zacks Rank #3 (Hold).
Kimball Electronics (KE - Free Report) , Quantum (QMCO - Free Report) and Lumentum (LITE - Free Report) are among the better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. Currently, Kimball Electronics sports a Zacks Rank #1 (Strong Buy), while Quantum and Lumentum carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Kimball Electronics shares have inched up 1.8% in the past six months. KE is scheduled to report its fiscal fourth-quarter 2026 results on Aug. 13.
Quantum's shares have surged 96% in the past six months. QMCO is scheduled to report its fiscal first-quarter 2027 results on Aug. 10, 2026.
Lumentum shares have gained 48.9% in the past six months. LITE is slated to report its fiscal fourth-quarter 2026 results on Aug. 11.
CENTENNIAL, Colo.--(BUSINESS WIRE)--Arrow Electronics, Inc. (NYSE: ARW) today announced the appointment of Deidra C. (Dee) Merriwether to the new position of president and chief operating officer, effective Sept. 8, 2026, reporting to William F. Austen, interim chief executive officer. Merriwether will be responsible for leading Arrow's global business segments and logistics organizations. With this announcement, the company augments its executive team and strengthens succession planning. “We a.
Arrow Electronics (ARW - Free Report) reported $9.99 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 31.8%. EPS of $5.45 for the same period compares to $2.43 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $9.45 billion, representing a surprise of +5.74%. The company delivered an EPS surprise of +22.47%, with the consensus EPS estimate being $4.45.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Arrow Electronics performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Geographic Revenue- Americas Components sales, as reported: $2.45 billion compared to the $2.41 billion average estimate based on two analysts. The reported number represents a change of +43.8% year over year.Geographic Revenue- Americas ECS sales as reported: $1.14 billion versus the two-analyst average estimate of $1.04 billion. The reported number represents a year-over-year change of +7.9%.Geographic Revenue- Asia components sales, as reported: $2.97 billion compared to the $2.74 billion average estimate based on two analysts. The reported number represents a change of +38.2% year over year.Geographic Revenue- EMEA ECS sales as reported: $1.49 billion versus the two-analyst average estimate of $1.42 billion. The reported number represents a year-over-year change of +20%.Geographic Revenue- EMEA components sales, as reported: $1.94 billion compared to the $1.84 billion average estimate based on two analysts. The reported number represents a change of +35.9% year over year.Net Sales- Global ECS: $2.63 billion versus $2.45 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +14.5% change.Net Sales- Global components: $7.37 billion versus the two-analyst average estimate of $7 billion. The reported number represents a year-over-year change of +39.4%.View all Key Company Metrics for Arrow Electronics here>>>
Shares of Arrow Electronics have returned +14.3% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
CENTENNIAL, Colo.--(BUSINESS WIRE)--Arrow Electronics, Inc. (NYSE:ARW) today announced financial results for its second quarter of 2026.
“Arrow delivered another strong quarter, underpinned by meaningful year-over-year growth in revenue, profit margin and earnings per share, all of which exceeded expectations,” said Bill Austen, Arrow’s interim president and chief executive officer. “Both our Global Components and Global Enterprise Computing Solutions businesses continue to demonstrate strong strategic execution, supported by healthy demand across regions, end markets and customer segments. Book-to-bill ratios remain well above parity, and our backlog continues to build in both size and duration.”
“Our results are the tangible outcome of the dedication, effort, decisions, and tradeoffs put forward by everyone at Arrow. The results also reinforce our belief in the strength of our business and our ability to continue delivering profitable growth. Together with our higher-margin, value-added offerings, scalable operating model and focused capital allocation strategy, we believe Arrow is well positioned to create long-term value for our suppliers, customers and shareholders.”
Arrow Consolidated
Quarter Ended
Six Months Ended
July 4,
June 28,
July 4,
June 28,
(in millions except per share data)
2026
2025
Change
2026
2025
Change
Consolidated sales
$
9,992
$
7,580
32
%
$
19,466
$
14,394
35
%
Net income attributable to shareholders
273
188
45
%
508
267
90
%
Net income per diluted share
5.26
3.59
47
%
9.81
5.09
93
%
Non-GAAP net income attributable to shareholders (1)
283
127
122
%
553
222
149
%
Non-GAAP net income per diluted share (1)
5.45
2.43
124
%
10.67
4.23
152
%
In the second quarter of 2026, sales increased 32 percent year over year and increased 30 percent year over year on a constant currency basis. Changes in foreign currencies had a positive impact on growth of $93.5 million on sales and $0.09 on earnings per share on a diluted basis compared to the second quarter of 2025.
Global Components
Quarter Ended
Six Months Ended
July 4,
June 28,
July 4,
June 28,
(in millions)
2026
2025
Change
2026
2025
Change
Global Components sales
$
7,366
$
5,285
39
%
$
14,006
$
10,063
39
%
Global Components operating income
396
187
112
%
760
358
112
%
Global Components non-GAAP operating income (1)
397
189
110
%
762
362
111
%
In the second quarter of 2026, Global Components sales increased 39 percent year over year and increased 38 percent year over year on a constant currency basis. Americas Components second-quarter sales increased 44 percent year over year. EMEA Components second-quarter sales increased 36 percent year over year and increased 32 percent year over year on a constant currency basis. Asia-Pacific Components second-quarter sales increased 38 percent year over year and increased 37 percent year over year on a constant currency basis.
Global Enterprise Computing Solutions ("ECS")
Quarter Ended
Six Months Ended
July 4,
June 28,
July 4,
June 28,
(in millions)
2026
2025
Change
2026
2025
Change
Global ECS sales
$
2,627
$
2,295
14
%
$
5,460
$
4,331
26
%
Global ECS operating income
85
97
(12
)
%
189
174
9
%
Global ECS non-GAAP operating income (1)
86
98
(12
)
%
191
176
8
%
In the second quarter of 2026, Global ECS sales increased 14 percent year over year and increased 13 percent year over year on a constant currency basis. Global ECS gross billings increased 14 percent year over year. Global ECS second-quarter operating income and non-GAAP operating income decreased 12 percent year over year. EMEA ECS second-quarter sales increased 20 percent year over year and increased 17 percent year over year on a constant currency basis. Americas ECS second-quarter sales increased 8 percent year over year.
Other Financial Information
In the second quarter of 2026, Arrow generated $318 million of cash flow from operations partly due to the timing of cash flows within Global Components supply chain services offerings. Arrow also repurchased $43 million of shares in the second quarter of 2026.
1 A reconciliation of non-GAAP financial measures to GAAP financial measures is presented in the reconciliation tables included herein.
Third-Quarter 2026 Outlook
Consolidated sales of $9.60 billion to $10.20 billion, with Global Components sales of $7.50 billion to $7.90 billion, and Global ECS sales of $2.10 billion to $2.30 billion Net income per share on a diluted basis of $4.72 to $4.92, and non-GAAP net income per share on a diluted basis of $4.83 to $5.03 Average tax rate in the range of 23 percent to 25 percent Interest expense of approximately $50 million Changes in foreign currencies to decrease sales by approximately $27 million, and earnings per share on a diluted basis by $0.01 compared to the third quarter of 2025 Changes in foreign currencies to decrease quarter-over-quarter growth in sales by $50 million, and earnings per share on a diluted basis to decrease by $0.04 compared to the second quarter of 2026 Third-Quarter 2026 GAAP to non-GAAP Outlook Reconciliation
NON-GAAP SALES RECONCILIATION
Quarter Ended
Quarter Ended
October 3,
September 27,
October 3,
July 4,
(in billions)
2026
2025
% Change
2026
2026
% Change
Global Components sales, GAAP
$
$7.50 - 7.90
$
5.56
35% - 42%
$
$7.50 - 7.90
$
7.37
2% - 7%
Impact of changes in foreign currencies
—
(0.01
)
—
(0.03
)
Global Components sales, constant currency
$
$7.50 - 7.90
$
5.55
35% - 42%
$
$7.50 - 7.90
$
7.34
2% - 8%
Global ECS sales, GAAP
$
$2.10 - 2.30
$
2.16
(3)% - 7%
$
$2.10 - 2.30
$
2.63
(20)% - (12)%
Impact of changes in foreign currencies
—
(0.02
)
—
(0.02
)
Global ECS sales, constant currency
$
$2.10 - 2.30
$
2.14
(2)% - 8%
$
$2.10 - 2.30
$
2.61
(19)% - (12)%
NON-GAAP EARNINGS RECONCILIATION
Reported
Intangible amortization
Restructuring &
GAAP measure
expense
integration charges
Non-GAAP measure
Net income per diluted share
$4.72 to $4.92
$
0.07
$
0.04
$4.83 to $5.03
Earnings Presentation
Please refer to the earnings presentation, which can be found at investor.arrow.com, as a supplement to the company’s earnings release. The company may use this website as a means of disclosing material, non-public information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor the website noted above, in addition to following the company’s press releases, SEC filings, and public conference calls and webcasts.
Webcast and Conference Call Information
Arrow Electronics will host a conference call to discuss second-quarter 2026 financial results on Aug. 6, 2026, at 4:30 p.m. ET.
A live webcast of the conference call will be available via the events section of investor.arrow.com or by accessing the webcast link directly at https://events.q4inc.com/attendee/235232794. Shortly after the conclusion of the conference call, a webcast replay will be available on the Arrow website for one year.
About Arrow Electronics
Arrow Electronics (NYSE:ARW) sources and engineers technology solutions for thousands of leading manufacturers and service providers. With global 2025 sales of $30.9 billion, Arrow’s portfolio enables technology across major industries and markets. Learn more at arrow.com.
Key Business Metrics
Management uses gross billings as an operational metric to monitor operating performance of its Global ECS reportable segment, including sales performance by geographic region, as it provides meaningful supplemental information in evaluating the overall performance of the Global ECS business. The company uses this key metric to develop financial forecasts, make strategic decisions, and prepare and approve annual budgets. Gross billings represent amounts invoiced to customers for goods and services during a specified period and do not include the impact of recording sales on a net basis or sales adjustments, such as trade discounts and other allowances. The use of gross billings has certain limitations as an analytical tool and should not be considered in isolation or as a substitute for revenue.
Information Relating to Forward-Looking Statements
This press release includes “forward-looking statements,” as the term is defined under the federal securities laws. Forward-looking statements are those statements which are not statements of historical or current fact. These forward-looking statements can be identified by forward-looking words such as “expects,” “anticipates,” “intends,” “plans,” “may,” “will,” “would,” “could,” “believes,” “seeks,” “projected,” “potential,” “estimates,” and similar expressions. These forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which could cause actual results or facts to differ materially from such statements for a variety of reasons, including, but not limited to: unfavorable economic conditions or changes, including those that may occur in connection with recession, inflation, tax rates, foreign currency exchange rates, or the availability of capital; impacts of military conflict and sanctions; political instability and changes; trade protection measures, tariffs, increased trade tensions, trade agreements and policies, and other restrictions, duties, and value-added taxes, and the associated macroeconomic impacts; disruptions, shortages, or inefficiencies in the supply chain; non-compliance with certain laws, regulations, or executive orders, such as trade, export, antitrust, and anti-corruption laws, or regulatory restrictions relating to the company or its subsidiaries or the permissibility of third-parties to transact therewith; the inability to realize sufficient sales to cover non-cancellable purchase obligations under certain ECS distribution agreements; changes in relationships with key suppliers; management transitions, including the company’s search for a permanent CEO; changes in product supply, pricing, and customer demand; increased profit-margin pressure resulting from industry conditions, competition, or other factors; other vagaries in the Global Components and the Global ECS markets; changes to applicable laws, regulations, executive orders, or rules relating to government contractors and the resulting legal and reputational exposure, including but not limited to those relating to environmental, social, governance, cybersecurity, data privacy, and artificial intelligence issues; commercial disputes, patent infringement claims, product liability lawsuits, or other legal proceedings; foreign tax and other loss contingencies; failure, disruption, or compromise of the company’s information systems or those of a third-party service provider, including unauthorized use or disclosure of company, supplier, or customer information; outbreaks, epidemics, pandemics, or public health crises; the effects of natural or man-made catastrophic events; and the company’s ability to generate positive cash flow. For a further discussion of these and other factors that could cause the company's future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in the company's most recent Quarterly Report on Form 10-Q and the company's most recent Annual Report on Form 10-K, as well as in other filings the company makes with the Securities and Exchange Commission. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The company undertakes no obligation to update publicly or revise any of the forward-looking statements.
Certain Non-GAAP Financial Information
In addition to disclosing financial results that are determined in accordance with accounting principles generally accepted in the United States (“GAAP”), the company also provides certain non-GAAP financial information. The company provides the following non-GAAP metrics: sales, gross profit, operating income (including by business segment), income before income taxes, provision for income taxes, consolidated net income, noncontrolling interests, net income attributable to shareholders, effective tax rate, and net income per share on a diluted basis. The foregoing non-GAAP measures are adjusted by certain of the following, as applicable: impact of changes in foreign currencies (referred to as “changes in foreign currencies” or “on a constant currency basis”) by re-translating prior-period results at current period foreign exchange rates; identifiable intangible asset amortization; restructuring, integration, and other; net gains (losses) on investments; inventory recoveries related to the wind down of a business within Global Components (“impact of wind down”); tax adjustments related to the wind down of a business; and employee severance and benefits costs not related to restructuring initiative presented in cost of sales. Management believes that providing this additional information is useful to the reader to better assess and understand the company’s operating performance and future prospects in the same manner as management, especially when comparing results with previous periods. Management typically monitors the business as adjusted for these items, in addition to GAAP results, to understand and compare operating results across accounting periods, for internal budgeting purposes, for short- and long-term operating plans, and to evaluate the company's financial performance. However, analysis of results on a non-GAAP basis should be used as a complement to, in conjunction with, and not as a substitute for, data presented in accordance with GAAP.
ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except per share data)
(Unaudited)
Quarter Ended
Six Months Ended
July 4, 2026
June 28, 2025
July 4, 2026
June 28, 2025
Sales
$
9,992,237
$
7,579,947
$
19,465,785
$
14,393,964
Cost of sales
8,867,028
6,731,290
17,250,116
12,771,315
Gross profit
1,125,209
848,657
2,215,669
1,622,649
Operating expenses:
Selling, general, and administrative
688,138
600,990
1,344,279
1,163,306
Depreciation and amortization
35,599
35,162
71,652
70,972
Restructuring, integration, and other
24,139
21,919
60,803
39,232
747,876
658,071
1,476,734
1,273,510
Operating income
377,333
190,586
738,935
349,139
Equity in earnings (losses) of affiliated companies
2,065
(659)
2,961
661
Gain on investments, net
12,044
103,976
6,252
104,116
Post-retirement expense
(999)
(664)
(1,961)
(1,286)
Interest and other financing expense, net
(37,297)
(60,283)
(85,781)
(116,465)
Income before income taxes
353,146
232,956
660,406
336,165
Provision for income taxes
80,311
45,934
151,541
69,279
Consolidated net income
272,835
187,022
508,865
266,886
Noncontrolling interests
124
(727)
1,048
(583)
Net income attributable to shareholders
$
272,711
$
187,749
$
507,817
$
267,469
Net income per share:
Basic
$
5.32
$
3.62
$
9.90
$
5.14
Diluted
$
5.26
$
3.59
$
9.81
$
5.09
Weighted-average shares outstanding:
Basic
51,306
51,856
51,314
52,057
Diluted
51,867
52,342
51,787
52,504
ARROW ELECTRONICS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands except par value)
(Unaudited)
July 4,
December 31,
2026
2025
ASSETS
Current assets:
Cash and cash equivalents
$
244,631
$
306,467
Accounts receivable, net
28,008,735
19,738,666
Inventories
5,939,587
5,081,863
Other current assets
796,035
533,035
Total current assets
34,988,988
25,660,031
Property, plant, and equipment, at cost:
Land
5,691
5,691
Buildings and improvements
205,840
199,433
Machinery and equipment
1,728,678
1,715,415
1,940,209
1,920,539
Less: Accumulated depreciation and amortization
(1,479,390
)
(1,445,889
)
Property, plant, and equipment, net
460,819
474,650
Investments in affiliated companies
62,149
59,315
Intangible assets, net
67,514
77,022
Goodwill
2,109,446
2,120,071
Other assets
687,765
687,049
Total assets
$
38,376,681
$
29,078,138
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
27,107,855
$
17,383,796
Accrued expenses
1,516,824
1,461,261
Short-term borrowings, including current portion of long-term debt
117,539
341
Total current liabilities
28,742,218
18,845,398
Long-term debt
2,053,041
3,084,715
Other liabilities
502,541
489,326
Equity:
Shareholders’ equity:
Common stock, par value $1:
Authorized - 160,000 shares in both 2026 and 2025
Issued - 56,094 and 55,838 shares in 2026 and 2025, respectively
56,094
55,838
Capital in excess of par value
613,560
586,993
Treasury stock (5,119 and 4,768 shares in 2026 and 2025, respectively), at cost
(554,346
)
(483,571
)
Retained earnings
7,059,909
6,552,092
Accumulated other comprehensive loss
(170,036
)
(126,640
)
Total shareholders’ equity
7,005,181
6,584,712
Noncontrolling interests
73,700
73,987
Total equity
7,078,881
6,658,699
Total liabilities and equity
$
38,376,681
$
29,078,138
ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Quarter Ended
July 4, 2026
June 28, 2025
Cash flows from operating activities:
Consolidated net income:
$
272,835
$
187,022
Adjustments to reconcile consolidated net income to net cash provided by (used for) operations:
Depreciation and amortization
35,599
35,162
Amortization of stock-based compensation
12,816
11,641
Equity in earnings of affiliated companies
(2,065
)
659
Deferred income taxes
2,649
11,092
Loss on dispostions of businesses, net
14,264
—
Gain on investments, net
(11,917
)
(103,863
)
Other
289
376
Change in assets and liabilities
Accounts receivable, net
(2,058,576
)
(2,627,707
)
Inventories
(219,734
)
108,833
Accounts payable
2,364,684
2,200,976
Accrued expenses
105,671
(2,027
)
Other assets and liabilities
(198,166
)
(28,060
)
Net cash provided by (used for) operating activities
318,349
(205,896
)
Cash flows from investing activities:
Acquisition of property, plant, and equipment
(21,138
)
(18,618
)
Proceeds from settlement of net investment hedges
—
24,858
Proceeds from sale of investments in equity securities
—
100,000
Net cash (used for) provided by investing activities
(21,138
)
106,240
Cash flows from financing activities:
Change in short-term and other borrowings
4,581
274,187
(Repayments of) proceeds from long-term bank borrowings, net
(300,074
)
50,566
Redemption of notes
—
(350,000
)
Proceeds from exercise of stock options
5,393
2,299
Repurchases of common stock
(41,855
)
(50,736
)
Other
(153
)
(148
)
Net cash used for financing activities
(332,108
)
(73,832
)
Effect of exchange rate changes on cash
(6,984
)
163,576
Net decrease in cash and cash equivalents
(41,881
)
(9,912
)
Cash and cash equivalents at beginning of period
286,512
231,882
Cash and cash equivalents at end of period
$
244,631
$
221,970
ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Six Months Ended
July 4, 2026
June 28, 2025
Cash flows from operating activities:
Consolidated net income:
$
508,865
$
266,886
Adjustments to reconcile consolidated net income to net cash provided by operations:
Depreciation and amortization
71,652
70,972
Amortization of stock-based compensation
22,415
30,200
Equity in earnings of affiliated companies
(2,961
)
(661
)
Deferred income taxes
12,403
5,251
Loss on disposition of businesses, net
22,830
—
Gain on investments, net
(6,046
)
(103,895
)
Other
(173
)
(302
)
Change in assets and liabilities:
Accounts receivable, net
(8,338,902
)
(1,896,481
)
Inventories
(876,277
)
46,449
Accounts payable
9,755,373
1,949,919
Accrued expenses
112,581
(81,710
)
Other assets and liabilities
(263,659
)
(140,845
)
Net cash provided by operating activities
1,018,101
145,783
Cash flows from investing activities:
Acquisition of property, plant, and equipment
(53,246
)
(43,597
)
Proceeds from settlement of net investment hedges
—
24,858
Proceeds from sale of investments in equity securities
—
100,000
Net cash (used for) provided by investing activities
(53,246
)
81,261
Cash flows from financing activities:
Change in short-term and other borrowings
7,262
454,803
Repayments of long-term bank borrowings, net
(923,170
)
(413,657
)
Redemption of notes
—
(350,000
)
Proceeds from exercise of stock options
10,431
3,203
Repurchases of common stock
(75,147
)
(110,149
)
Other
(153
)
(148
)
Net cash used for financing activities
(980,777
)
(415,948
)
Effect of exchange rate changes on cash
(45,914
)
222,067
Net (decrease) increase in cash and cash equivalents
(61,836
)
33,163
Cash and cash equivalents at beginning of period
306,467
188,807
Cash and cash equivalents at end of period
$
244,631
$
221,970
ARROW ELECTRONICS, INC.
ECS Gross Billings
(In thousands)
(Unaudited)
Global Enterprise Computing Solutions - Gross Billings(1)
Quarter Ended
Six Months Ended
July 4,
June 28,
July 4,
June 28,
2026
2025
% Change
2026
2025
% Change
Gross billings:
Americas ECS
$
2,693,364
$
2,543,759
6
%
$
5,652,975
$
4,851,496
17
%
EMEA ECS
3,162,931
2,596,209
22
%
6,636,643
4,927,426
35
%
Global ECS
$
5,856,295
$
5,139,968
14
%
$
12,289,618
$
9,778,922
26
%
ARROW ELECTRONICS, INC.
NON-GAAP SALES RECONCILIATION
(In thousands)
(Unaudited)
Quarter Ended
July 4, 2026
June 28, 2025
% Change
Consolidated sales, as reported
$
9,992,237
$
7,579,947
31.8
%
Impact of changes in foreign currencies
—
93,482
Consolidated sales, constant currency
$
9,992,237
$
7,673,429
30.2
%
Global Components sales, as reported
$
7,365,625
$
5,284,898
39.4
%
Impact of changes in foreign currencies
—
58,847
Global Components sales, constant currency
$
7,365,625
$
5,343,745
37.8
%
Americas Components sales, as reported
$
2,454,521
$
1,707,522
43.7
%
Impact of changes in foreign currencies
—
203
Americas Components sales, constant currency
$
2,454,521
$
1,707,725
43.7
%
EMEA Components sales, as reported
$
1,938,784
$
1,426,944
35.9
%
Impact of changes in foreign currencies
—
45,924
EMEA Components sales, constant currency
$
1,938,784
$
1,472,868
31.6
%
Asia Components sales, as reported
$
2,972,320
$
2,150,432
38.2
%
Impact of changes in foreign currencies
—
12,720
Asia Components sales, constant currency
$
2,972,320
$
2,163,152
37.4
%
Global ECS sales, as reported
$
2,626,612
$
2,295,049
14.4
%
Impact of changes in foreign currencies
—
34,635
Global ECS sales, constant currency
$
2,626,612
$
2,329,684
12.7
%
Americas ECS sales, as reported
$
1,135,513
$
1,052,785
7.9
%
Impact of changes in foreign currencies
—
(185
)
Americas ECS sales, constant currency
$
1,135,513
$
1,052,600
7.9
%
EMEA ECS sales, as reported
$
1,491,099
$
1,242,264
20.0
%
Impact of changes in foreign currencies
—
34,820
EMEA ECS sales, constant currency
$
1,491,099
$
1,277,084
16.8
%
ARROW ELECTRONICS, INC.
NON-GAAP SALES RECONCILIATION
(In thousands)
(Unaudited)
Six Months Ended
July 4, 2026
June 28, 2025
% Change
Consolidated sales, as reported
$
19,465,785
$
14,393,964
35.2
%
Impact of changes in foreign currencies
—
366,996
Consolidated sales, constant currency
$
19,465,785
$
14,760,960
31.9
%
Global Components sales, as reported
$
14,005,960
$
10,062,620
39.2
%
Impact of changes in foreign currencies
—
213,545
Global Components sales, constant currency
$
14,005,960
$
10,276,165
36.3
%
Americas Components sales, as reported
$
4,766,668
$
3,276,092
45.5
%
Impact of changes in foreign currencies
—
791
Americas Components sales, constant currency
$
4,766,668
$
3,276,883
45.5
%
EMEA Components sales, as reported
$
3,703,963
$
2,766,945
33.9
%
Impact of changes in foreign currencies
—
188,215
EMEA Components sales, constant currency
$
3,703,963
$
2,955,160
25.3
%
Asia Components sales, as reported
$
5,535,329
$
4,019,583
37.7
%
Impact of changes in foreign currencies
—
24,539
Asia Components sales, constant currency
$
5,535,329
$
4,044,122
36.9
%
Global ECS sales, as reported
$
5,459,825
$
4,331,344
26.1
%
Impact of changes in foreign currencies
—
153,451
Global ECS sales, constant currency
$
5,459,825
$
4,484,795
21.7
%
Americas ECS sales, as reported
$
2,320,563
$
1,962,688
18.2
%
Impact of changes in foreign currencies
—
4,550
Americas ECS sales, constant currency
$
2,320,563
$
1,967,238
18.0
%
EMEA ECS sales, as reported
$
3,139,262
$
2,368,656
32.5
%
Impact of changes in foreign currencies
—
148,901
EMEA ECS sales, constant currency
$
3,139,262
$
2,517,557
24.7
%
ARROW ELECTRONICS, INC.
NON-GAAP EARNINGS RECONCILIATION
(In thousands except per share data)
(Unaudited)
Three months ended July 4, 2026
Reported
Intangible
Restructuring,
Impact of
GAAP
amortization
Integration
Wind
Non-GAAP
measure
expense
and other
Down(1)
Other(2)
measure
Operating income
$
377,333
$
4,753
$
24,139
$
(2,970)
$
—
$
403,255
Income before income taxes
353,146
4,753
24,139
(2,970)
(12,044)
367,024
Provision for income taxes
80,311
1,162
6,752
(944)
(2,892)
84,389
Consolidated net income
272,835
3,591
17,387
(2,026)
(9,152)
282,635
Noncontrolling interests
124
—
—
—
—
124
Net income attributable to shareholders
$
272,711
$
3,591
$
17,387
$
(2,026)
$
(9,152)
$
282,511
Net income per diluted share (5)
$
5.26
$
0.07
$
0.34
$
(0.04)
$
(0.18)
$
5.45
Effective tax rate (6)
22.7
%
23.0
%
Three months ended June 28, 2025
Reported
Intangible
Restructuring,
Impact of
GAAP
amortization
Integration
Wind
Non-GAAP
measure
expense
and other
Down(1)
Other(3)
measure
Operating income
$
190,586
$
4,870
$
21,919
$
(2,172)
$
172
$
215,375
Income before income taxes
232,956
4,870
21,919
(2,172)
(103,804)
153,769
Provision for income taxes
45,934
1,208
5,747
(689)
(25,119)
27,081
Consolidated net income
187,022
3,662
16,172
(1,483)
(78,685)
126,688
Noncontrolling interests
(727)
24
—
—
—
(703)
Net income attributable to shareholders
$
187,749
$
3,638
$
16,172
$
(1,483)
$
(78,685)
$
127,391
Net income per diluted share (5)
$
3.59
$
0.07
$
0.31
$
(0.03)
$
(1.50)
$
2.43
Effective tax rate (6)
19.7
%
17.6
%
ARROW ELECTRONICS, INC.
NON-GAAP EARNINGS RECONCILIATION
(In thousands except per share data)
(Unaudited)
Six months ended July 4, 2026
Reported
Intangible
Restructuring,
Impact of
GAAP
amortization
Integration
Wind
Non-GAAP
measure
expense
and other(4)
Down(1)
Other(2)
measure
Operating income
$
738,935
$
9,518
$
60,803
$
(5,218)
$
—
$
804,038
Income before income taxes
660,406
9,518
60,803
(5,218)
(6,252)
719,257
Provision for income taxes
151,541
2,326
14,804
(1,651)
(1,501)
165,519
Consolidated net income
508,865
7,192
45,999
(3,567)
(4,751)
553,738
Noncontrolling interests
1,048
—
—
—
—
1,048
Net income attributable to shareholders
$
507,817
$
7,192
$
45,999
$
(3,567)
$
(4,751)
$
552,690
Net income per diluted share (5)
$
9.81
$
0.14
$
0.86
$
(0.07)
$
(0.09)
$
10.67
Effective tax rate (6)
22.9
%
23.0
%
Six months ended June 28, 2025
Reported
Intangible
Restructuring,
Impact of
GAAP
amortization
Integration
Wind
Non-GAAP
measure
expense
and other
Down(1)
Other(3)
measure
Operating income
$
349,139
$
10,230
$
39,232
$
(4,639
)
$
172
$
394,134
Income before income taxes
336,165
10,230
39,232
(4,639
)
(103,944
)
277,044
Provision for income taxes
69,279
2,524
10,098
(1,470
)
(25,152
)
55,279
Consolidated net income
266,886
7,706
29,134
(3,169
)
(78,792
)
221,765
Noncontrolling interests
(583
)
156
—
—
—
(427
)
Net income attributable to shareholders
$
267,469
$
7,550
$
29,134
$
(3,169
)
$
(78,792
)
$
222,192
Net income per diluted share (5)
$
5.09
$
0.14
$
0.55
$
(0.06
)
$
(1.50
)
$
4.23
Effective tax rate (6)
20.6
%
20.0
%
___________________________
(1) Includes recoveries of inventory related to the wind down of a business.
(2) Other includes gain on investments, net.
(3) Other includes gain on investments, net, non-recurring tax items, and employee severance and benefits costs not related to restructuring initiative presented in cost of sales.
(4) Includes restructuring, integration, and other charges, and tax adjustments related to the wind down of a business.
(5) The sum of the components for non-GAAP diluted EPS, as adjusted may not agree to totals, as presented, due to rounding.
(6) The items as shown in this table, represent the reconciling items for the tax rate as reported and as a non-GAAP measure.
ARROW ELECTRONICS, INC.
SEGMENT INFORMATION
(In thousands)
(Unaudited)
Quarter Ended
Six Months Ended
July 4,
June 28,
July 4,
June 28,
2026
2025
2026
2025
Sales:
Global Components
$
7,365,625
$
5,284,898
$
14,005,960
$
10,062,620
Global ECS
2,626,612
2,295,049
5,459,825
4,331,344
Consolidated
$
9,992,237
$
7,579,947
$
19,465,785
$
14,393,964
Operating income:
Global Components (a)
$
396,275
$
186,808
$
759,794
$
358,193
Global ECS (b)
85,375
96,969
189,113
174,283
Segment operating income
$
481,650
$
283,777
$
948,907
$
532,476
Corporate operating expenses (c)
(104,317)
(93,191)
(209,972)
(183,337)
Consolidated
$
377,333
$
190,586
$
738,935
$
349,139
________________________________________
(a)
Global Components operating income includes $3.0 million and $5.2 million in inventory recoveries related to the wind down of a business for the second quarter and first six months of 2026, respectively, and $2.2 million and $4.6 million in inventory recoveries related to the wind down of a business for the second quarter and first six months of 2025.
(b)
Global ECS operating income includes $26.6 million and $48.3 million in losses related to the underperformance of certain non-cancellable multi-year purchase obligations during the second quarter and first six months of 2026, respectively.
(c)
Corporate unallocated operating expenses includes restructuring, integration, and other charges of $24.1 million and $60.8 million for the second quarter and first six months of 2026, respectively, and $21.9 million and $39.2 million for the second quarter and first six months of 2025, respectively.
ARROW ELECTRONICS, INC.
NON-GAAP SEGMENT RECONCILIATION
(In thousands)
(Unaudited)
Quarter Ended
Six Months Ended
July 4,
June 28,
July 4,
June 28,
2026
2025
2026
2025
Global Components gross profit, as reported
$
856,503
$
591,454
$
1,663,251
$
1,146,399
Impact of wind down to inventory
(2,970)
(2,172)
(5,218)
(4,639)
Other
—
172
—
172
Global Components non-GAAP gross profit
$
853,533
$
589,454
$
1,658,033
$
1,141,932
Global Components gross profit as a percentage of sales, as reported
11.6
%
11.2
%
11.9
%
11.4
%
Global Components non-GAAP gross profit as a percentage of sales
11.6
%
11.2
%
11.8
%
11.3
%
Global ECS gross profit, as reported
$
268,706
$
257,203
$
552,418
$
476,250
Global ECS gross profit as a percentage of sales, as reported
10.2
%
11.2
%
10.1
%
11.0
%
Quarter Ended
Six Months Ended
July 4,
June 28,
July 4,
June 28,
2026
2025
2026
2025
Global Components operating income, as reported
$
396,275
$
186,808
$
759,794
$
358,193
Intangible assets amortization expense
3,824
3,945
7,661
8,383
Impact of wind down to inventory
(2,970)
(2,172)
(5,218)
(4,639)
Other
—
172
—
172
Global Components non-GAAP operating income
$
397,129
$
188,753
$
762,237
$
362,109
Global Components operating income as a percentage of sales, as reported
5.4
%
3.5
%
5.4
%
3.6
%
Global Components non-GAAP operating income as a percentage of sales
5.4
%
3.6
%
5.4
%
3.6
%
Global ECS operating income, as reported
$
85,375
$
96,969
$
189,113
$
174,283
Intangible assets amortization expense
929
925
1,857
1,847
Global ECS non-GAAP operating income
$
86,304
$
97,894
$
190,970
$
176,130
Global ECS operating income as a percentage of sales, as reported
3.3
%
4.2
%
3.5
%
4.0
%
Global ECS non-GAAP operating income as a percentage of sales
Wall Street analysts forecast that Arrow Electronics (ARW - Free Report) will report quarterly earnings of $4.45 per share in its upcoming release, pointing to a year-over-year increase of 83.1%. It is anticipated that revenues will amount to $9.45 billion, exhibiting an increase of 24.7% compared to the year-ago quarter.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
Given this perspective, it's time to examine the average forecasts of specific Arrow Electronics metrics that are routinely monitored and predicted by Wall Street analysts.
According to the collective judgment of analysts, 'Net Sales- Global ECS' should come in at $2.45 billion. The estimate indicates a change of +7% from the prior-year quarter.
The consensus estimate for 'Net Sales- Global components' stands at $7.00 billion. The estimate indicates a change of +32.4% from the prior-year quarter.
The collective assessment of analysts points to an estimated 'Geographic Revenue- Americas Components sales, as reported' of $2.41 billion. The estimate points to a change of +41.2% from the year-ago quarter.
The combined assessment of analysts suggests that 'Geographic Revenue- EMEA components sales, as reported' will likely reach $1.84 billion. The estimate indicates a year-over-year change of +29.2%.
The consensus among analysts is that 'Geographic Revenue- EMEA ECS sales as reported' will reach $1.42 billion. The estimate indicates a year-over-year change of +14.2%.
Analysts forecast 'Geographic Revenue- Americas ECS sales as reported' to reach $1.04 billion. The estimate indicates a year-over-year change of -1.5%.
Based on the collective assessment of analysts, 'Geographic Revenue- Asia components sales, as reported' should arrive at $2.74 billion. The estimate suggests a change of +27.4% year over year.
View all Key Company Metrics for Arrow Electronics here>>>
Shares of Arrow Electronics have experienced a change of +17.4% in the past month compared to the +3.5% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), ARW is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Key Takeaways ARW is set to report Q2 2026 earnings on Aug. 6, with revenues expected to rise 24.67% year over year.Arrow Electronics expanded supplier ties, AI initiatives and Motorola Solutions distribution during Q2.ARW faces softer ECS sales guidance despite recovering components demand and ongoing share repurchases. Arrow Electronics (ARW - Free Report) is scheduled to report second-quarter 2026 earnings on Aug. 6.
For the second quarter of 2026, sales are estimated between $9.15 billion and $9.75 billion. The Zacks Consensus Estimate for ARW’s second-quarter 2026 revenues is pegged at $9.45 billion, indicating a 24.67% increase from the year-ago quarter’s reported figure.
ARW anticipates GAAP earnings of $3.91-$4.11 per share and non-GAAP earnings of $4.32-$4.52 per share.
The consensus mark for earnings is pegged at $4.45 per share, unchanged over the past 30 days. The figure indicates an 83.13% increase from the year-ago quarter’s reported figure.
ARW’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 33.71%.
Factors Likely to Shape ARW’s Q2 ResultsArrow Electronics enters its second-quarter 2026 results against a backdrop of guidance that already points to a moderating pace of growth after an outsized first quarter.
Within Global Components, supplier and distribution relationships expanded through the second-quarter as Arrow Electronics continued broadening its line card across power, electrification, and industrial categories, activity consistent with management's commentary on capturing recovering unit demand across geographies and end markets.
Within Global ECS, Arrow Electronics signed an EMEA-wide distribution agreement with Motorola Solutions in early May, adding Avigilon's video security and access control technologies to its cybersecurity and cloud portfolio. The segment also continued expanding AI enablement initiatives for channel partners through the ArrowSphere platform and new AI-focused hubs introduced during the quarter, aimed at helping partners build and monetize AI-driven solutions, an area management has flagged as central to ECS' software-weighted, less cyclical revenue mix.
On the catalyst side, the broad-based cyclical recovery in components that spanned the Americas, EMEA and Asia-Pacific in the first quarter, alongside improving book-to-bill ratios and a building backlog, appears to have carried into the second quarter, with components guided to sales of $6.8 billion to $7.2 billion. Demand rebuilding from customers replenishing depleted buffer inventories, rather than speculative ordering, together with continued expansion of higher-margin value-added services such as supply chain and engineering support, are among the factors likely to have supported profitability during the period.
Headwinds appear equally relevant. Global ECS sales were guided down sequentially to $2.35 billion to $2.55 billion, reflecting the absence of the extra shipping days and the hyperscaler-driven data center build that lifted first-quarter ECS billings, along with the lingering effect of a charge tied to an underperforming multiyear purchase obligation that pressured segment margins. Continued share repurchases under the newly authorized $1 billion buyback program, effective mid-May, and ongoing costs tied to restructuring and the search for a permanent chief executive also remain relevant considerations for the quarter's results.
Given these mixed signals against a still-building components recovery, investors may find it prudent to hold existing positions or await a clearer post-earnings entry point before adding fresh exposure to the stock.
What Our Model Says About ARW StockOur proven model does not predict an earnings beat for Arrow Electronics this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is exactly the case here.
ARW currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to ConsiderHere are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Sandisk Corporation (SNDK - Free Report) is scheduled to report fourth-quarter fiscal 2026 results on Aug. 5. Currently, Sandisk has an Earnings ESP of +4.13% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Sandisk’s fiscal fourth-quarter earnings is pegged at $34.24 per share, indicating a year-over-year surge of 11,707%. Earnings estimates for the quarter have been revised upward by 5.7% over the past 60 days.
Western Digital Corporation (WDC - Free Report) is scheduled to report fourth-quarter fiscal 2026 results on Aug. 5. Currently, Western Digital has an Earnings ESP of +3.22% and flaunts a Zacks Rank #1.
The Zacks Consensus Estimate for Western Digital’s fiscal fourth-quarter earnings is pegged at $3.35 per share, calling for a year-over-year increase of 101.8%. Earnings estimates for the quarter have been revised upward by 3 cents in the past 30 days.
MKS Inc. (MKSI - Free Report) is scheduled to report second-quarter 2026 results on Aug. 5. Currently, MKS has an Earnings ESP of +2.64% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for MKS’ second-quarter earnings is pegged at $2.93 per share, calling for a year-over-year jump of 65.5%. Earnings estimates for the quarter have been revised northward by a penny in the past 30 days.
Key Takeaways ARW, PENN, GOOS and HRMY qualified a screen for high earnings yield and buy-rated value stocks.Earnings yield above 10% was paired with EPS growth, liquidity and price filters to find value picks.The four picks show projected 2026 sales and EPS growth, with estimates rising over recent weeks. The Federal Reserve left interest rates unchanged at 3.5%-3.75% following its latest FOMC meeting, marking the fifth straight policy meeting without a rate change since the December cut. Although the decision was largely expected, markets remain concerned that the Fed may be moving too cautiously as inflation risks persist.
At the same time, geopolitical tensions continue to cloud the outlook. The conflict between the United States and Iran has intensified, with fresh strikes and counterstrikes raising fears of a broader regional escalation. These developments have also kept oil prices volatile, adding to inflationary pressures and market uncertainty.
In such an unpredictable environment, focusing on fundamentally strong, attractively valued stocks remains a sensible long-term investment strategy.
One of the most common valuation metrics to pick undervalued stocks with solid upside potential is the P/E ratio. However, there’s another interesting ratio that you can consider for ferreting out attractively valued stocks. And that is earnings yield.
One could invest in high earnings yield stocks like Arrow Electronics Inc. (ARW - Free Report) , PENN Entertainment, Inc. (PENN - Free Report) , Canada Goose Holdings Inc. (GOOS - Free Report) and Harmony Biosciences Holdings (HRMY - Free Report) to fetch handsome long-term rewards.
Earnings Yield StrengthEarnings yield is useful for investors concerned about the rate of return on investment. This metric, expressed in percentage, is calculated as annual earnings per share (EPS) divided by market price. This metric measures the anticipated yield (or return) from earnings for each dollar invested in a stock today. While comparing stocks, if other factors are similar, the ones with higher earnings yield are considered undervalued, while those with lower earnings yield are seen as overpriced.
While earnings yield is nothing but the reciprocal of the P/E ratio, it is a little more illuminating than the traditional P/E ratio, as it also facilitates the comparison of stocks with fixed-income securities. Investors often compare the earnings yield of a stock to the prevailing interest rates, such as the current 10-year Treasury yield, to get a sense of the return on investment it offers compared to virtually risk-free returns.
If the yield on a stock is lower than the 10-year Treasury yield, it would be considered overvalued relative to bonds. Conversely, if the yield on the stock is higher, it would be considered undervalued. In this situation, investing in the stock market would be a better option for a value investor.
The Winning StrategyWe have set an Earnings Yield greater than 10% as our primary screening criterion but it alone cannot be used for picking stocks that have the potential to generate solid returns. So, we have added the following parameters to the screen:
Estimated EPS growth for the next 12 months greater than or equal to the S&P 500: This metric compares the 12-month forward EPS estimate with the 12-month actual EPS.
Average Daily Volume (20 Day) greater than or equal to 100,000: High trading volume implies that a stock has adequate liquidity.
Current Price greater than or equal to $5.
Buy-Rated Stocks: Stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) have been known to outperform peers in any type of market environment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Our PicksHere we highlight four of the 36 stocks that qualified the screening:
Arrow Electronics is one of the world’s largest distributors of electronic components and enterprise computing products.The Zacks Consensus Estimate for ARW’s 2026 and 2027 EPS implies year-over-year growth of 74% and 4%, respectively. EPS estimates for the current year and the next have moved up by $5.56 and $4.31, respectively, over the past 90 days. Arrow Electronics currently sports a Zacks Rank #1 and has a Value Score of A.
PENN Entertainment operates gaming and racing facilities, along with video gaming terminal operations, with a strong focus on slot-machine entertainment. The Zacks Consensus Estimate for PENN’s 2026 and 2027 EPS implies year-over-year growth of 123% and 65%, respectively. EPS estimates for the current year and the next have moved up by 11 cents and 41 cents, respectively, over the past 30 days. PENN Entertainment currently sports a Zacks Rank #1 and has a Value Score of A.
Canada Goose is a designer, manufacturer, distributor and retailer of premium outerwear for men, women and children. The Zacks Consensus Estimate for GOOS’ 2026 and 2027 EPS implies year-over-year growth of 59% and 13.5%, respectively. EPS estimates for the current year and the next have moved up by 4 cents and 6 cents, respectively, over the past 30 days. Canada Goose currently sports a Zacks Rank #1 and has a Value Score of A.
Harmony Biosciences is a neuroscience company developing and commercializing therapies for sleep/wake disorders and rare neurological diseases. The Zacks Consensus Estimate for HRMY’s 2026 and 2027 EPS implies year-over-year growth of 22% and 17%, respectively. EPS estimates for the current year and the next have moved up by 10 cents and 23 cents, respectively, over the past 30 days. Harmony Biosciences currently sports a Zacks Rank #1 and has a Value Score of A.
Key Takeaways ARW benefits from stronger earnings growth expectations, margin expansion and upward estimate revisions.Arrow Electronics gains from diversified customers, engineering services and digital investments.Avnet is expanding AI exposure as demand boosts networking, industrial and IP&E businesses. Avnet, Inc. (AVT - Free Report) and Arrow Electronics, Inc. (ARW - Free Report) are two crucial players in the global electronic components distribution industry, serving as key supply chain partners for semiconductor manufacturers and technology companies. Both companies are benefiting from accelerating investments in artificial intelligence (AI), cloud computing, data centers and industrial automation, which are driving demand for semiconductors and related components.
Given the major tailwind, let’s analyze their business models, risk profiles and long-term outlooks and examine which one looks like the better investment right now.
The Case for AVT StockAvnet is benefiting from strong demand in AI infrastructure, networking and industrial markets. In the third quarter of fiscal 2026, the company reported revenues of $7.1 billion, up 34% year over year and 13% sequentially. Avnet’s networking and industrial markets were the biggest growth drivers during the third quarter. AI-related demand is becoming a larger part of AVT’s business.
In the third quarter of fiscal 2026, management stated that the company’s direct exposure to AI and data center customers has increased from around 5-7% previously to nearly 10-15% now. Most of this business is tied to Asia, especially Taiwan, where demand from hyperscalers and server customers remains strong. The company is also benefiting from demand for components that support AI infrastructure.
AI buildouts are increasing demand for products tied to power management, cooling systems, connectors, capacitors, resistors and sensors. This helped AVT’s interconnect, passive and electromechanical (IP&E) business grow 25% year over year in the quarter. AI accelerators require surrounding IP&E products, creating additional sales opportunities beyond semiconductors.
Growing backlog levels and book-to-bill ratios supported by rising lead times across several component categories benefit AVT. Despite higher volumes, Avnet’s gross profit margin was 10.4% in the third quarter of fiscal 2026, down 70 basis points from the year-ago quarter, reflecting a higher mix of Asia sales and product/customer mix shifts in the Western regions. A large portion of the sales growth involved costly memory products.
For the fourth quarter of fiscal 2026, AVT expects revenues to be in the range of $7.3-$7.6 billion, implying approximately 5% sequential growth at the midpoint. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $7.46 billion, implying year-over-year growth of 32.8%. The Zacks Consensus Estimate for AVT’s fiscal 2026 earnings indicates year-over-year growth of 49%. Estimates have remained unchanged in the past 60 days.
Image Source: Zacks Investment Research
The Case for ARW StockArrow Electronics serves as a critical distribution partner for semiconductor and electronic component manufacturers targeting major industries and markets. Arrow Electronics provides solutions for electronic component distribution, semiconductor supply, embedded computing and engineering services for OEMs, industrial manufacturers, automotive suppliers, communications equipment vendors and data center customers.
Arrow Electronics’ engineering services division provides value-added design support that helps customers integrate complex chipsets and solutions, creating sticky relationships that generate recurring revenues. In first-quarter 2026, Global Components sales increased 39% year over year to $6.64 billion, while operating income more than doubled to $363.5 million.
Furthermore, the company's technical expertise in high-performance computing, memory solutions and specialized processors gives it competitive advantages in serving customers developing technology-enabled products across automotive, industrial, healthcare and telecommunications sectors. Arrow Electronics’ diverse customer portfolio spanning multiple industries and geographies provides fundamental stability and growth opportunities.
ARW doesn’t face customer concentration risk as no single customer accounted for more than 2% of the company’s 2025 consolidated sales. Arrow Electronics has made substantial investments in digital capabilities that are fundamentally transforming its operating model and margin profile. The company's digital platforms provide customers with real-time inventory visibility, pricing transparency and streamlined procurement processes.
Arrow Electronics undertakes these strategic investments while also demonstrating impressive cash flow generation capabilities. Alongside robust cash flow, ARW also maintains strong profitability. ARW’s non-GAAP operating income rose to $401 million, and the non-GAAP operating margin expanded 160 basis points in the first quarter of 2026. The Zacks Consensus Estimate for ARW’s second-quarter 2026 earnings suggests year-over-year growth of 83%. Estimates have been revised upward in the past 60 days.
Image Source: Zacks Investment Research
AVT vs ARW: Price Performance & Valuation CheckAvnet shares have risen 83.8% year to date, while Arrow Electronics has soared 93.5%
YTD Performance Chart
Image Source: Zacks Investment Research
On the valuation front, Avnet trades at a forward 12-month price-to-sales (P/S) multiple of 0.26X, above its median of 0.20X, while Arrow Electronics trades at a P/S multiple of 0.29X, above its median of 0.21X.
Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
Conclusion: AVT vs. ARWBoth Avnet and Arrow Electronics are benefiting from the AI infrastructure spending cycle, strong semiconductor demand and improving industrial markets. Avnet stands out for its expanding AI exposure, growing IP&E business and healthy revenue momentum, while Arrow Electronics benefits from broad customer diversification, engineering expertise, digital investments and stronger margin expansion.
Although both stocks have rallied sharply and trade above their historical valuation medians, Arrow Electronics appears to have a slight edge due to stronger earnings growth expectations, upward estimate revisions and improving profitability. However, Avnet remains an attractive long-term investment for investors seeking exposure to the AI-driven electronic components distribution market. Given these factors, we believe ARW is a better investment right now.
ARW sports a Zacks Rank #1 (Strong Buy), while AVT carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
CENTENNIAL, Colo.--(BUSINESS WIRE)--Arrow Electronics, Inc. (NYSE:ARW) announced it will host a conference call to discuss second-quarter 2026 financial results on Aug. 6, 2026, at 4:30 p.m. ET. Webcast: A live webcast of the conference call will be available via the events section of https://investor.arrow.com/investors or by accessing the webcast link directly at https://events.q4inc.com/attendee/235232794. Shortly after the conclusion of the conference call, a webcast replay will be availabl.
Arrow Electronics (NYSE:ARW – Get Free Report) is expected to release its Q2 2026 results before the market opens on Thursday, July 30th. Analysts expect the company to announce earnings of $4.45 per share and revenue of $9.5420 billion for the quarter. Arrow Electronics has set its Q2 2026 guidance at 4.32-4.520 EPS. Parties can check the company’s upcoming Q2 2026 earning overview page for the latest details on the call scheduled for Thursday, July 30, 2026 at 1:00 PM ET.
Arrow Electronics (NYSE:ARW – Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The technology company reported $5.22 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.92 by $2.30. Arrow Electronics had a return on equity of 11.40% and a net margin of 2.17%.The company had revenue of $9.47 billion during the quarter, compared to analysts’ expectations of $8.39 billion. During the same quarter in the prior year, the business posted $1.80 earnings per share. The company’s revenue for the quarter was up 39.0% compared to the same quarter last year. On average, analysts expect Arrow Electronics to post $19 EPS for the current fiscal year and $20 EPS for the next fiscal year.
Arrow Electronics Stock Up 1.4% ARW stock opened at $219.21 on Thursday. The firm’s 50-day moving average is $215.46 and its two-hundred day moving average is $172.61. The company has a market capitalization of $11.21 billion, a price-to-earnings ratio of 15.68 and a beta of 1.20. Arrow Electronics has a 52 week low of $101.79 and a 52 week high of $237.33. The company has a current ratio of 1.24, a quick ratio of 1.02 and a debt-to-equity ratio of 0.35.
Arrow Electronics declared that its board has approved a share buyback plan on Wednesday, May 13th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the technology company to buy up to 9.7% of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s board of directors believes its shares are undervalued.
Insider Buying and Selling In related news, insider Eric Nowak sold 3,473 shares of the stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $210.99, for a total transaction of $732,768.27. Following the completion of the sale, the insider directly owned 48,835 shares of the company’s stock, valued at $10,303,696.65. This represents a 6.64% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP Carine Lamercie Jean-Claude sold 3,000 shares of the firm’s stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $216.00, for a total transaction of $648,000.00. Following the sale, the senior vice president owned 12,626 shares of the company’s stock, valued at $2,727,216. The trade was a 19.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.80% of the stock is owned by insiders.
Hedge Funds Weigh In On Arrow Electronics A number of hedge funds have recently modified their holdings of the stock. Invesco Ltd. lifted its holdings in shares of Arrow Electronics by 5.4% during the fourth quarter. Invesco Ltd. now owns 288,427 shares of the technology company’s stock valued at $31,779,000 after purchasing an additional 14,821 shares during the last quarter. Corient Private Wealth LLC boosted its position in shares of Arrow Electronics by 18.2% in the 4th quarter. Corient Private Wealth LLC now owns 47,864 shares of the technology company’s stock valued at $5,274,000 after purchasing an additional 7,380 shares during the period. Vident Advisory LLC increased its stake in Arrow Electronics by 8.9% in the 4th quarter. Vident Advisory LLC now owns 9,333 shares of the technology company’s stock worth $1,028,000 after purchasing an additional 760 shares in the last quarter. XTX Topco Ltd purchased a new position in Arrow Electronics in the 4th quarter worth about $2,266,000. Finally, Voloridge Investment Management LLC acquired a new stake in Arrow Electronics during the 4th quarter worth about $8,466,000. 99.34% of the stock is currently owned by institutional investors and hedge funds.
Wall Street Analysts Forecast Growth Several equities research analysts recently commented on the company. Bank of America raised Arrow Electronics from an “underperform” rating to a “neutral” rating and boosted their target price for the stock from $122.00 to $233.00 in a report on Wednesday, May 13th. Raymond James Financial reiterated an “outperform” rating and set a $220.00 price target on shares of Arrow Electronics in a research report on Friday, May 8th. Wells Fargo & Company boosted their price objective on Arrow Electronics from $165.00 to $175.00 and gave the stock an “underweight” rating in a research note on Monday. Truist Financial upped their price objective on Arrow Electronics from $240.00 to $260.00 and gave the company a “buy” rating in a report on Thursday, June 4th. Finally, Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Arrow Electronics in a research note on Tuesday, May 26th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $222.00.
Check Out Our Latest Stock Analysis on ARW
About Arrow Electronics (Get Free Report)
Arrow Electronics (NYSE: ARW) is a global provider of products, services and solutions to industrial and commercial users of electronic components and enterprise computing solutions. The company offers a broad portfolio of semiconductors, passives, connectors, electromechanical devices and embedded solutions, serving customers across diverse end markets including automotive, communications, computing, aerospace, defense and healthcare. Through its extensive supplier relationships, Arrow enables design engineers to identify and procure components required for the development of new electronic systems and devices.
In addition to component distribution, Arrow delivers value-added services such as design engineering support, supply chain management, global logistics and technical training.
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On July 21, 2026, Arrow Electronics Inc (ARW) shares rose 5.2% today, bringing the current price to $216.23. The stock has exhibited significant volatility over
Here are three stocks with buy rank and strong value characteristics for investors to consider today, July 21:
ORIX Corporation (IX - Free Report) : This financial services company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing by 55.7% over the last 60 days.
ORIX has a price-to-earnings ratio (P/E) of 8.28 compared with 9.70 for the industry. The company possesses a Value Scoreof A.
Arrow Electronics, Inc. (ARW - Free Report) : This technology solutions company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing by 6.6% over the last 60 days.
Arrow Electronics has a price-to-earnings ratio (P/E) of 10.79 compared with 28.90 for the industry. The company possesses a Value Score of A.
Designer Brands Inc. (DBI - Free Report) : This footwear company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.6% over the last 60 days.
Designer Brands has a price-to-earnings ratio (P/E) of 15.05 compared with 22.73 for the S&P. The company possesses a Value Score of A.
See the full list of top ranked stocks here.
Learn more about the Value score and how it is calculated here.
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Arrow Electronics (ARW - Free Report) . ARW is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.44, while its industry has an average P/E of 14.06. Over the past 52 weeks, ARW's Forward P/E has been as high as 11.05 and as low as 8.04, with a median of 9.71.
ARW is also sporting a PEG ratio of 0.46. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ARW's PEG compares to its industry's average PEG of 0.46. Over the last 12 months, ARW's PEG has been as high as 0.55 and as low as 0.40, with a median of 0.49.
Another notable valuation metric for ARW is its P/B ratio of 0.98. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.04. Over the past 12 months, ARW's P/B has been as high as 1.22 and as low as 0.78, with a median of 1.02.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ARW has a P/S ratio of 0.32. This compares to its industry's average P/S of 0.49.
Finally, investors will want to recognize that ARW has a P/CF ratio of 9.63. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 17.76. ARW's P/CF has been as high as 11.55 and as low as 8.13, with a median of 10.03, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Arrow Electronics is likely undervalued currently. And when considering the strength of its earnings outlook, ARW sticks out as one of the market's strongest value stocks.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
SummaryArrow Electronics has surged 75% in six months, yet trades at just 10x forward non-GAAP earnings, offering double-digit upside potential.ARW benefits from robust AI-driven demand, a growing backlog, and improved margin visibility, with Q1 sales up 39% and non-GAAP EPS up 190%.Valuation remains compelling: ARW trades at a 61% discount to sector median, with a re-rating to 11–12x forward earnings supporting a $220–$230 target.Risks include ARW's low-margin distributor status and potential margin slippage, but strong fundamentals and backlog underpin the upside thesis. AlexSecret/iStock via Getty Images
Elevator Thesis Arrow Electronics (ARW) stock has retreated after an epic run over the past year in line with the broader AI space.
In the past six months, the stock has risen 75%, outpacing the S&P
476 Followers
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Arrow Electronics is a leading distributor of electronic components, hardware systems, and software with a diverse product catalog. ARW's broad portfolio reduces risk and earnings volatility but can obscure its exposure to high-growth AI infrastructure demand. The company's offerings span critical AI data center needs, including memory, storage, networking, power components, and supply chain management.
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Arrow Electronics (ARW - Free Report) . ARW is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.44, while its industry has an average P/E of 14.76. Over the past year, ARW's Forward P/E has been as high as 11.05 and as low as 8.04, with a median of 9.71.
Investors should also note that ARW holds a PEG ratio of 0.46. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ARW's PEG compares to its industry's average PEG of 0.49. Within the past year, ARW's PEG has been as high as 0.55 and as low as 0.40, with a median of 0.49.
Investors should also recognize that ARW has a P/B ratio of 0.98. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.13. Within the past 52 weeks, ARW's P/B has been as high as 1.22 and as low as 0.78, with a median of 1.02.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ARW has a P/S ratio of 0.32. This compares to its industry's average P/S of 0.48.
Finally, investors will want to recognize that ARW has a P/CF ratio of 9.63. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 18.54. Over the past 52 weeks, ARW's P/CF has been as high as 11.55 and as low as 8.13, with a median of 10.03.
Investors could also keep in mind Avnet (AVT - Free Report) , another Electronics - Parts Distribution stock with a Zacks Rank of #2 (Buy) and Value grade of A.
Shares of Avnet are currently trading at a forward earnings multiple of 10.47 and a PEG ratio of 0.36 compared to its industry's P/E and PEG ratios of 14.76 and 0.49, respectively.
Over the past year, AVT's P/E has been as high as 16.75, as low as 8.05, with a median of 10.50; its PEG ratio has been as high as 1.89, as low as 0.35, with a median of 0.81 during the same time period.
Avnet sports a P/B ratio of 0.89 as well; this compares to its industry's price-to-book ratio of 2.13. In the past 52 weeks, AVT's P/B has been as high as 1.00, as low as 0.71, with a median of 0.91.
Value investors will likely look at more than just these metrics, but the above data helps show that Arrow Electronics and Avnet are likely undervalued currently. And when considering the strength of its earnings outlook, ARW and AVT sticks out as one of the market's strongest value stocks.
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Arrow Electronics (ARW - Free Report) , a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Arrow Electronics currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if ARW is a promising momentum pick, let's examine some Momentum Style elements to see if this electronics maker holds up.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For ARW, shares are up 2.61% over the past week while the Zacks Electronics - Parts Distribution industry is up 2.61% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 7.07% compares favorably with the industry's 5.98% performance as well.
While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Shares of Arrow Electronics have increased 66.65% over the past quarter, and have gained 88.13% in the last year. On the other hand, the S&P 500 has only moved 13.8% and 26.67%, respectively.
Investors should also pay attention to ARW's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. ARW is currently averaging 581,848 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with ARW.
Over the past two months, 4 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost ARW's consensus estimate, increasing from $13.59 to $19.15 in the past 60 days. Looking at the next fiscal year, 4 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that ARW is a #1 (Strong Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Arrow Electronics on your short list.
Have you been paying attention to shares of Arrow Electronics (ARW - Free Report) ? Shares have been on the move with the stock up 10.9% over the past month. The stock hit a new 52-week high of $234.46 in the previous session. Arrow Electronics has gained 107.6% since the start of the year compared to the 18.2% gain for the Zacks Computer and Technology sector and the 69.8% return for the Zacks Electronics - Parts Distribution industry.
What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 7, 2026, Arrow Electronics reported EPS of $5.22 versus consensus estimate of $2.81 while it beat the consensus revenue estimate by 14.7%.
For the current fiscal year, Arrow Electronics is expected to post earnings of $19.15 per share on $37.06 in revenues. This represents a 73.77% change in EPS on a 20.11% change in revenues. For the next fiscal year, the company is expected to earn $19.91 per share on $38.21 in revenues. This represents a year-over-year change of 3.95% and 3.12%, respectively.
Valuation MetricsWhile Arrow Electronics has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Arrow Electronics has a Value Score of B. The stock's Growth and Momentum Scores are C and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 12X current fiscal year EPS estimates, which is not in-line with the peer industry average of 20.1X. On a trailing cash flow basis, the stock currently trades at 15.9X versus its peer group's average of 19.2X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks RankWe also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Arrow Electronics currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Arrow Electronics passes the test. Thus, it seems as though Arrow Electronics shares could still be poised for more gains ahead.
Key Takeaways U.S. stocks are set for a firmer start as hopes of a U.S.-Iran peace deal lift market sentiment.The screen targets stocks beating the S&P 500 over 12 weeks, four weeks and one week.PLGO, GCO, DAVE, NUE and ARW passed the screen with positive estimate revisions and strong price gains. U.S. stocks look set to begin the week on a firmer note as hopes of a U.S.-Iran peace deal ease a major source of market anxiety. Stock futures moved higher, oil prices fell, and markets rallied following reports of progress in reopening the Strait of Hormuz. Lower crude prices could help cool inflation worries, giving investors more confidence ahead of the Federal Reserve’s policy decision.
The tone is not risk-free, since details of the agreement still need to be signed, and energy flows may take time to normalize. Even so, the backdrop has turned mildly bullish. Stronger interest in technology and innovation-led names also points to improving confidence. In this setting, relative price strength remains a useful strategy. Stocks already outperforming may attract fresh buying as sentiment improves.
At this stage, investors would be wise to consider companies such as Pelagos Insurance Capital Limited (PLGO - Free Report) , Genesco Inc. (GCO - Free Report) , Dave Inc. (DAVE - Free Report) , Nucor Corporation (NUE - Free Report) and Arrow Electronics (ARW - Free Report) .
Relative Price Strength Strategy
Investors generally gauge a stock’s potential returns by examining earnings growth and valuation multiples. At the same time, it’s essential to measure the performance of such a stock relative to its industry, peers, or an appropriate benchmark.
If you see that a stock is underperforming on fundamental factors, it would be prudent to move on and find a better alternative. However, those outperforming their respective sectors in terms of price should be selected because they stand a better chance of providing considerable returns.
Then again, it is imperative that you determine whether or not an investment has relevant upside potential when considering stocks with significant relative price strength. Stocks delivering better than the S&P 500 for 1 to 3 months, at least, and having solid fundamentals, indicate room for growth and the best way to go about this strategy.
Finally, it is crucial to find out whether analysts are optimistic about the upcoming earnings of these companies. In order to do this, we have added positive estimate revisions for the current quarter’s (Q1) earnings to our screen. When a stock undergoes an upward revision, it leads to additional price gains.
Screening Parameters
Relative % Price change – 12 weeks greater than 0
Relative % Price change – 4 weeks greater than 0
Relative % Price change – 1 week greater than 0
(We have considered those stocks that have been outperforming the S&P 500 over the last 12 weeks, four weeks and one week.)
% Change (Q1) Est. over 4 Weeks greater than 0: Positive current-quarter estimate revisions over the last four weeks.
Zacks Rank equal to 1: Only Zacks Rank #1 (Strong Buy) stocks — that have returned more than 26% annually over the last 26 years and surpassed the S&P 500 in 23 of the last 26 years — can get through. You can see the complete list of today’s Zacks #1 Rank stocks here.
Current Price greater than or equal to $5 and Average 20-day Volume greater than or equal to 50,000: A minimum price of $5 is a good standard to screen low-priced stocks, while a high trading volume would imply adequate liquidity.
VGM Score less than or equal to B:Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2 (Buy), offer the best upside potential.
Here are five of the 14 stocks that made it through the screen:
Pelagos Insurance Capital: Pelagos Insurance Capital is a specialty insurance and reinsurance company focused on strategic capital allocation and careful risk selection. Backed by strong ratings, diversified underwriting partners and solid capital, it aims to build long-term value. Over the past 60 days, the Zacks Consensus Estimate for the company’s 2026 earnings has moved up 14.9%. PLGO has a VGM Score of B.
Pelagos Insurance Capital beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other. It has a trailing four-quarter earnings surprise of roughly 53.6%, on average. PLGO shares have gained 41.5% in a year.
Genesco: Genesco is a footwear-focused retailer bringing style-led brands like Journeys, Schuh, Johnston & Murphy and Little Burgundy to customers. It blends curated products, distinct brand stories, digital growth and strong teams to build loyalty. The Zacks Consensus Estimate for Genesco’s fiscal 2027 earnings indicates 55.2% growth. GCO has a VGM Score of B.
The firm has a market capitalization of around $472 million. Over the past 60 days, the Zacks Consensus Estimate for Genesco’s fiscal 2027 earnings has gone up 4.7%. GCO’s shares have surged 93.6% in a year.
Dave: It is a digital banking platform helping underserved users manage money with ease. DAVE’s tools include budgeting support, interest-free cash advances, side income opportunities, and a modern checking account — all designed to boost financial health. The Zacks Consensus Estimate for 2026 earnings of the company indicates 22.7% growth. DAVE has a VGM Score of B.
Over the past 60 days, the Zacks Consensus Estimate for DAVE’s 2026 earnings has moved up 11.1%. The company has a market capitalization of $3.7 billion. DAVE shares have gone up 32.4% in a year.
Nucor: Nucor is a leading producer of structural steel, steel bars, steel joists, steel deck and cold finished bars in the United States. The Zacks Consensus Estimate for 2026 earnings of Nucor indicates 103.8% growth. NUE has a VGM Score of B.
Over the past 60 days, the Zacks Consensus Estimate for Nucor’s 2026 earnings has moved up 33.4%. The company has a market capitalization of $69.7 billion. NUE shares have gone up 119% in a year.
Arrow Electronics: The company is one of the world’s largest distributors of electronic components and enterprise computing products. Over the past 60 days, the Zacks Consensus Estimate for Arrow Electronics’ 2026 earnings has moved up 40.9%. ARW has a VGM Score of B.
Arrow Electronics beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 33.7%, on average. ARW shares have gained 81.7% in a year.
CENTENNIAL, Colo.--(BUSINESS WIRE)--Global technology solutions provider Arrow Electronics today announced it has earned the Frontier Distributor designation within the Microsoft AI Cloud Partner Program.
"Microsoft’s Frontier Distributor designation reflects the investments we continue to make in cloud, AI and technical enablement across our channel ecosystem." - Sophie Daval, Director, Hyperscalers, Global ArrowSphere, Arrow Electronics
Share The Frontier Distributor designation recognizes distributors that consistently enable channel partner success through scale, readiness and execution. It reflects strong operational maturity, channel partner enablement capabilities and measurable customer impact.
This achievement reflects Arrow’s role in supporting channel partners and customers with the infrastructure, programs and services required to deliver outcomes using Microsoft technologies.
Arrow supports channel partners through ArrowSphere, its digital distribution platform, alongside regional technical, commercial and enablement teams across EMEA and North America. In November 2025, Microsoft named Arrow its 2025 Distribution Partner of the Year, recognizing ArrowSphere AI offerings, including ArrowSphere Assistant. The Frontier Distributor designation further strengthens Arrow’s ability to help channel partners build, deploy and scale Microsoft cloud and AI solutions across multiple markets and industries.
Sophie Daval, director, hyperscalers, global ArrowSphere at Arrow’s enterprise computing solutions business, said, “Microsoft’s Frontier Distributor designation reflects the investments we continue to make in cloud, AI and technical enablement across our channel ecosystem. Following our recognition as Microsoft’s 2025 Distribution Partner of the Year, this designation further reinforces our ability to help channel partners simplify cloud adoption, support AI deployments and build scalable services around Microsoft technologies.”
“The Frontier Distributor designation recognizes leading Cloud Solution Provider distributors, such as Arrow, who help partners accelerate cloud solutions more effectively,” said Alex Zagury, CVP, global channel sales, Microsoft. “This recognition reflects their ability to drive differentiation at scale and deliver meaningful value to small and medium-sized businesses.”
About Arrow Electronics
Arrow Electronics (NYSE:ARW) sources and engineers technology solutions for thousands of leading manufacturers and service providers. With 2025 sales of $31 billion, Arrow’s portfolio enables technology across major industries and markets. Learn more at arrow.com.
One of the breakout tech stocks this year has gone largely unnoticed, certainly compared to the "Magnificent Seven" and other artificial intelligence (AI) stock juggernauts. Yet Arrow Electronics (ARW +1.76%) has outperformed most of them, with a 104% year-to-date (YTD) return at the time of this writing.
Is it too late to buy Arrow, an electronics distributor that provides the components to support the AI boom -- or does it have more room to run?
Image source: Getty Images.
A key cog in the AI supply chain Arrow Electronics is an electronics distributor and consultancy that distributes semiconductor chips and components. The components are used in AI-enabled systems and devices across the automotive, medical devices, data centers, and aerospace and defense industries, as well as robotics and industrial applications. So, it is a supplier to the AI boom and a huge part of the supply chain.
Arrow also serves as an enterprise consultant, helping equipment manufacturers develop hardware and software strategies and AI solutions.
It is this shift from being just a middleman, distributing supplies, to being a partner to its customers, providing components and expertise to build their AI systems, that has sent Arrow stock into overdrive. AI computing systems are complex and hard to build, so Arrow's Enterprise Computing Solutions (ECS) arm has filled a critical void, driving surging revenue.
In the latest quarter, revenue rose 39% year over year to $9.5 billion, while earnings jumped 201% to $4.55 per share, with adjusted earnings at $5.22 per share, up 190%. The components business accounted for $6.6 billion, while the growing ECS consultancy generated $2.8 billion in revenue.
The outlook for Q2 calls for overall revenue of between $9.15 billion and $9.75 billion. Adjusted earnings are anticipated to be $4.32 to $4.52 per share, down from Q1, but up 81% year over year. Management said it's a normalization of earnings after a hyperscaler client accelerated a build-out in Q1.
Did you miss the boat on Arrow? The strong quarterly results and the robust Q2 outlook took investors and analysts by surprise. It prompted several analysts to raise their price targets for Arrow, as they apparently did not expect such growth.
The results also caught investors' attention, as the stock price has jumped about 15% since the May 7 earnings report. But even with the triple-digit spike in the stock price, Arrow Electronics still has plenty of juice left in it.
Today's Change
(
1.76
%) $
3.92
Current Price
$
226.78
It remains largely under the radar, with a price-to-earnings (P/E) ratio of just 16 and a forward P/E ratio of only 11. In addition, its five-year P/E-to-growth (PEG) ratio is only 0.35, indicating it is undervalued relative to long-term earnings growth expectations.
Truist raised its price target twice in the past two months by a total of $77 per share, to $260 per share. That would suggest 16% upside.
Bank of America boosted its price target by $111 to $233 per share, and I would not be surprised to see another bump.
If you missed the boat on Arrow Electronics this year, you can still hop on board, as it's priced to move higher.
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Arrow Electronics (ARW - Free Report) . ARW is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.44. This compares to its industry's average Forward P/E of 16.55. Over the past year, ARW's Forward P/E has been as high as 11.05 and as low as 8.04, with a median of 9.71.
ARW is also sporting a PEG ratio of 0.46. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ARW's PEG compares to its industry's average PEG of 0.83. Over the past 52 weeks, ARW's PEG has been as high as 0.55 and as low as 0.40, with a median of 0.49.
We should also highlight that ARW has a P/B ratio of 0.98. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. ARW's current P/B looks attractive when compared to its industry's average P/B of 2.34. ARW's P/B has been as high as 1.22 and as low as 0.78, with a median of 1.02, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ARW has a P/S ratio of 0.3. This compares to its industry's average P/S of 0.51.
Finally, we should also recognize that ARW has a P/CF ratio of 9.63. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 20.20. Over the past 52 weeks, ARW's P/CF has been as high as 11.55 and as low as 8.13, with a median of 10.03.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Arrow Electronics is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ARW feels like a great value stock at the moment.
On May 11, 2026, Arrow Electronics Inc ARW shares rose 3.9%, bringing the current price to $202.56. Over the past month, the stock has experienced impressive momentum, gaining 28.1%, and it has soared 83.8% year-to-date. The shares are currently trading within a 52-week range of $101.79 to $199.47.
GF Value™ verdict: Current price of $202.56 is 39.8% above GF Value™ of $144.86, indicating the stock is overvalued.GF Score™ of 84/100 signifies a strong overall rating based on various factors.Notable signal: Insider activity shows net selling of $3.3M over the last 3 months, suggesting caution. Is ARW Overvalued or Undervalued? The current price of Arrow Electronics Inc ARW stands at $202.56, while the GF Value™ is calculated at $144.86. This indicates that the stock is 39.8% overvalued, which presents a significant margin of safety for potential investors considering valuation. The GF Valuation label classifies ARW as "Significantly Overvalued," highlighting the risks associated with investing at this price point. With such a substantial discrepancy between the current price and the GF Value™, investors should be cautious as the stock may not provide favorable returns if the market corrects its valuation.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given the significant overvaluation, this could lead to a potential price correction in the future, which would be a risk for current shareholders.
How Does ARW's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 14.5x 9.7x Forward P/E 12.2x N/A Arrow Electronics' current P/E ratio of 14.5x is significantly above its 5-year median P/E of 9.7x, indicating that the stock is trading at a premium compared to its historical valuation metrics. The forward P/E of 12.2x also suggests a higher valuation expectation. This P/E analysis aligns with the GF Value™ verdict that ARW is overvalued, reinforcing the caution indicated by the valuation measures.
What Does ARW's GF Score™ Tell Us? Metric Rating GF Score™ 84/100 Financial Strength 6/10 Profitability 7/10 Growth 7/10 Valuation 5/10 Momentum 10/10 The GF Score™ of 84/100 indicates that Arrow Electronics has strong potential based on its financial metrics and performance indicators. The strongest areas are momentum (10/10), reflecting the recent price appreciation, and profitability (7/10) along with growth (7/10), suggesting a solid operational performance. However, the valuation score of 5/10 highlights the concern regarding its current price level relative to intrinsic value, indicating that while the company is performing well, the valuation may not be justified at this time.
What Are Insiders Doing with ARW Stock? In the last three months, insider activity has shown mixed signals, with insiders purchasing $0.6 million worth of stock but also selling $3.9 million. This net selling behavior may suggest that insiders are taking profits or expressing caution about the company's future performance. While insider buying can be a positive indicator, the selling could indicate a lack of confidence in the stock’s current valuation or future prospects.
What This Means for Investors Based on the GF Value™ of $144.86 and the current market price of $202.56, Arrow Electronics Inc ARW is considered significantly overvalued. While the stock has shown strong momentum and good financial metrics, the substantial overvaluation presents risks for potential investors.
For the complete analysis, visit the Arrow Electronics Inc ARW stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is ARW's GF Score™?
The GF Score™ for Arrow Electronics is 84/100, indicating a strong overall rating based on financial metrics and performance.
Is ARW overvalued or undervalued?
ARW is currently overvalued, with a GF Value™ of $144.86 compared to the current price of $202.56.
What is ARW's P/E ratio?
ARW's P/E (TTM) ratio is 14.5x, which is significantly above its 5-year median of 9.7x, indicating a higher valuation than its historical norms.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Investors might want to bet on Arrow Electronics (ARW - Free Report) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.
The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this electronics maker, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Arrow Electronics, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate RevisionsThe company is expected to earn $3.62 per share for the current quarter, which represents a year-over-year change of +49.0%.
The Zacks Consensus Estimate for Arrow Electronics has increased 56.18% over the last 30 days, as one estimate has gone higher compared to no negative revisions.
Current-Year Estimate RevisionsFor the full year, the company is expected to earn $15.11 per share, representing a year-over-year change of +37.1%.
The revisions trend for the current year also appears quite promising for Arrow Electronics, with two estimates moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 14.12%.
Favorable Zacks RankThanks to promising estimate revisions, Arrow Electronics currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom LineArrow Electronics shares have added 15.8% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects.
CENTENNIAL, Colo.--(BUSINESS WIRE)--The Board of Directors of Arrow Electronics, Inc. (NYSE:ARW) has authorized a new share repurchase program of up to $1 billion of the company's outstanding common stock. Effective May 12, 2026, this program replaces the company's existing share repurchase program. This authorization will permit the company to repurchase shares of its common stock as market and business conditions warrant through open market purchases, privately negotiated transactions, or oth.
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What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
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Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
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It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
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Stock to Watch: Arrow Electronics (ARW - Free Report) New York-based Arrow Electronics Inc. is one of the world’s largest distributors of electronic components and enterprise computing products. Arrow provides one of the broadest product ranges in the electronic components and enterprise computing solutions distribution industries. Along with these, the company provides a wide range of value-added services to help customers reduce their marketing time, lower the total cost of ownership, introduce innovative products through demand creation opportunities and enhance their overall competitiveness.
ARW is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 12.39; value investors should take notice.
Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $3.02 to $16.26 per share. ARW boasts an average earnings surprise of +33.7%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, ARW should be on investors' short list.
Key Takeaways DOW, ARW and LITE are flagged as broker-upgrade picks amid uneven U.S. equity gains.Dow's 2026 earnings are expected to soar 352.1% YoY, alongside a 4.8% broker-rating lift.ARW's 2026 earnings are projected to jump 63.1% YoY, with broker ratings up 20% in four weeks. U.S. equities have been resilient but extremely uneven year to date, recovering from early volatility and pushing higher as strong corporate earnings, artificial intelligence (AI)-linked optimism and a still-supportive economy offset macro worries. Sentiment has been shaped by shifting Fed-rate expectations, Treasury-yield swings, oil-price volatility, geopolitical risks (mainly related to Middle East tension) and trade developments with China. Further, tech fatigue and bond-market pressure have created choppier trading.
Against such a backdrop, it is not easy for retail investors to choose stocks for generating solid returns over time. One way to cut short this task is to follow brokers’ recommendations. In this regard, stocks such as Dow Inc. (DOW - Free Report) , Arrow Electronics, Inc. (ARW - Free Report) and Lumentum Holdings Inc. (LITE - Free Report) are worth betting on.
Broker views are shaped by a combination of direct management access, scrutiny of public disclosures, earnings-call participation and sector-wide research. This broader coverage allows brokers to assess a company’s fundamentals not in isolation, but against macroeconomic trends, industry dynamics, competitive positioning and peer performance. So, broker opinions can help investors better understand the factors that may influence a stock’s future trajectory.
A broker upgrade usually reflects a meaningful change in the analyst’s expectations. This may stem from stronger guidance, positive channel checks, improving demand trends, margin recovery, better execution, or revised operating assumptions. When these developments are not yet fully captured in consensus forecasts or market pricing, an upgrade may point to a potential inflection in earnings momentum or valuation perception.
Yet, a broker upgrade should not be treated as an investment thesis on its own. It is best viewed as one signal within a broader decision-making framework. Sustainable long-term returns depend on business quality, valuation, industry structure, competitive advantages, catalysts, execution risks and the investor’s own risk appetite, time horizon and portfolio objectives.
Selecting the Winning StrategyWe have a screening strategy that may help you identify potential winners.
Broker Rating Upgrades (Four Weeks) of 1% or More: The screen selects stocks that have witnessed broker rating upgrades of 1% or more over the past four weeks.
Current Price Greater Than $5: The stocks must trade above $5.
Average 20-Day Volume Greater Than 100,000: A large trading volume guarantees that the stock is easily tradable.
Zacks Rank Equal to #1 (Strong Buy) or 2 (Buy): Despite good or bad market conditions, stocks with a Zacks Rank #1 or 2 have a proven record of success. You can see the complete list of today’s Zacks #1 Rank stocks here.
VGM Score of A or B: Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.
3 Stocks With Upgraded Broker Ratings to InvestMidland, MI-based Dow is a material science company, providing a world-class portfolio of advanced, sustainable and leading-edge products. DOW’s broad portfolio of higher-value functional polymers, significant low-cost global feedstock positions, global footprint and market reach, and manufacturing sites in every geographic region place it in an advantageous position against competitors.
Dow’s 2026 earnings are expected to soar 352.1% year over year. DOW, which currently carries a Zacks Rank #2, has witnessed a 4.8% upward revision in broker ratings over the past four weeks.
Arrow Electronics, based in Centennial, CO, is one of the world’s largest distributors of electronic components and enterprise computing products. ARW provides one of the broadest product ranges in the electronic components and enterprise computing solutions distribution industries.
ARW’s 2026 earnings are projected to jump 63.1% on a year-over-year basis. Arrow Electronics, sporting a Zacks Rank #1 at present, has witnessed a 20% upward revision in broker ratings over the past four weeks.
Based in San Jose, CA, Lumentum is a provider of optical and photonic products serving cloud, AI, machine learning, telecommunications, consumer and industrial end markets. LITE’s portfolio spans semiconductor laser chips and sub-assemblies, wavelength management systems, optical modules, optical circuit switches and industrial lasers used in precision materials processing.
Lumentum’s fiscal 2026 earnings are expected to surge 298.5% year over year. LITE, which currently carries a Zacks Rank #2, has witnessed a 4.8% upward revision in broker ratings over the past four weeks.
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Published in basic-materials computers tech-stocks
Key Takeaways ARW's ECS sales jumped 39% in Q1 2026, driven by strong demand for AI and cloud infrastructure.AVT reported strong AI infrastructure growth, but gross margin fell 68 basis points in Q3 FY26.ARW is witnessing stronger upward EPS estimate revisions compared with AVT for 2026 and 2027. Avnet Inc. (AVT - Free Report) and Arrow Electronics Inc. (ARW - Free Report) are two of the world’s largest players operating in the electronic components industry. Avnet is engaged in the distribution of semiconductors and Interconnect, passive and electromechanical devices (IP&E) and provides supply chain management services. Arrow Electronics focuses on selling semiconductor products, IP&E components and IT hardware and software to original equipment manufacturers and electronics manufacturing services providers.
Both AVT and ARW play key roles in the global technology supply chain by helping manufacturers and businesses source semiconductors, electronic components and infrastructure solutions. However, from an investment point of view, one stock offers a more favorable outlook than the other right now. Let’s break down their fundamentals, growth prospects, market challenges and valuation to determine which stock offers a more compelling investment case.
The Case for AVT StockAvnet is benefiting from strong demand in AI infrastructure, networking and industrial markets. In the third quarter of fiscal 2026, the company reported revenues of $7.1 billion, up 34% year over year and 13% sequentially. Management stated that AI data center, networking and industrial markets were the biggest growth drivers during the third quarter. The company also delivered record sales of $6.67 billion in its Electronic Components business, which increased 34.7% year over year on the back of robust demand across most end markets.
AI-related demand is becoming a larger part of AVT’s business. In the third quarter of fiscal 2026, management stated that the company’s direct exposure to AI and data center customers has increased from around 5-7% previously to nearly 10-15% now. Most of this business is tied to Asia, especially Taiwan, where demand from hyperscalers and server customers remains strong. Networking demand also improved across regions, with the Americas showing strong growth during the third quarter.
The company is also benefiting from demand for components that support AI infrastructure. AI buildouts are increasing demand for products tied to power management, cooling systems, connectors, capacitors, resistors and sensors. This helped AVT’s interconnect, passive and electromechanical (IP&E) business grow 25% year over year in the third quarter.
However, one of the weaker areas in AVT’s third quarter was gross margin performance. AVT’s gross margin in the third quarter contracted 68 basis points year over year to 10.4%. A major problem is the growing dependence on Asia. Asia now contributes nearly half of AVT’s total revenues. The region usually operates at lower margins because pricing is highly competitive and customers buy in large volumes. As a result, as Asia becomes a larger part of the business, it puts pressure on AVT’s consolidated gross margins.
The Case for ARW StockArrow Electronics is witnessing strong growth in its Enterprise Computing Solutions (ECS) business on the back of strong demand for AI and cloud infrastructure. In the first quarter of 2026, ECS sales increased 39% year over year to $2.8 billion, while billings also rose 39% to $6.4 billion. Management stated growth was driven by cloud, AI, infrastructure software, cybersecurity and data intelligence demand. This shows that the company continues to benefit from rising enterprise spending on AI workloads and data center expansion.
Arrow Electronics also saw stronger demand for storage and computing products during the first quarter. Management stated that memory supply constraints encouraged customers to place orders earlier to secure product availability. Hyperscaler customers accelerated data center deployments into the first quarter, which supported ECS growth and increased supply chain services revenues. Arrow Electronics expects AI-related infrastructure demand to remain healthy through the rest of the year.
Another important factor is the diversified nature of the ECS business. The Hardware business contributes only about 25% of ECS revenues. The remaining contribution comes from software, cloud and infrastructure-related offerings. This reduces Arrow Electronics’ dependence on hardware demand alone and may help support more stable growth over time. If memory shortages continue, customers could shift more workloads toward public cloud solutions, which may further benefit ARW’s cloud business.
Arrow Electronics is also expanding its digital platform, Arrowsphere, which helps customers source, manage and scale cloud technologies. Management believes the platform supports recurring revenue growth and deeper customer relationships. While some of the growth in the first quarter benefited from extra shipping days and accelerated customer orders, ARW’s strong exposure to AI infrastructure, cloud and enterprise software markets could continue supporting ECS momentum in 2026.
AVT vs. ARW: Earnings Estimate TrendThe earnings estimate revision trend for the two companies reflects that analysts are turning more bullish toward ARW.
The Zacks Consensus Estimate for AVT’s 2026 and 2027 EPS is pegged at $5.12 per share and $7.30 per share, respectively. The estimates for 2026 and 2027 have been revised up by 4.1% and 3%, respectively, over the past seven days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ARW’s 2026 and 2027 EPS is pinned at $17.97 per share and $19.48 per share, respectively. The estimates for 2026 and 2027 have been revised up by 10.5% and 8.5%, respectively, over the past seven days.
Image Source: Zacks Investment Research
AVT vs. ARW: Price Performance and ValuationYear to date, shares of AVT and ARW have surged 73% and 88.7%, respectively.
AVT vs. ARW: YTD Price Return Performance
Image Source: Zacks Investment Research
Currently, AVT is trading at a forward sales multiple of 0.25X, lower than ARW’s forward sales multiple of 0.30X. ARW does seem pricey compared with AVT. However, ARW’s robust financial performance and stronger earnings estimate revisions justify its higher valuations.
AVT vs. ARW: Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
Conclusion: ARW Has an Edge Over AVTBoth AVT and ARW are key players in the electronic components industry. However, AVT continues to face pressure on gross margins as Asia becomes a larger part of its revenue mix. In contrast, ARW is seeing strong results supported by rising AI and cloud spending, demand for its products remains strong, and earnings estimates are moving higher.
Currently, ARW sports a Zacks Rank #1 (Strong Buy), making the stock a clear winner over AVT, which has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CENTENNIAL, Colo.--(BUSINESS WIRE)--Arrow Electronics, Inc. (NYSE:ARW) today announced its management is scheduled to present at the following investor event to discuss Arrow's business and strategy: On Jun. 02 at 1:00 p.m. ET, William Austen, interim president and chief executive officer, will participate in a fireside chat at the 2026 Bank of America Global Technology Conference. Live webcasts and replays can be accessed via the events page on Arrow's Investor Relations website, investor.arro.
