Track market-moving stories before they get noisy

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.

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

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.

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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

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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.

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.

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.

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.

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.

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.

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 traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in 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.

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.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease 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 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 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.

Data analysis science and big data with AI technology. Analyst or Scientist uses a computer and dashboard for analysis of information on complex data sets on computer. Insights development engineer

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Artificial intelligence (AI) has been the driving force behind equity markets for some time now.

Each quarter we get rosy forecasts for future revenue potential and headlines that fuel the hype train.

But behind the headlines, lies the truth: AI is taking all the cash from the biggest names in the market. In fact, in just five quarters (2025 through 1Q26), Alphabet (GOOGL), Microsoft (MSFT), Meta (META), Amazon (AMZN), and Oracle (ORCL) burned a combined $563 billion in free cash flow (FCF).

Armed with the latest data from 1Q26 filings, I update my AI Winners and Losers series to show how AI is killing the cash flows and crushing the balance sheets of the biggest AI companies.

AI’s Cash IncineratorAs first noted in Danger Zone: The Losers in the AI Arms Race, the AI race has turned cash printing machines into huge cash incinerators.

Figure 1 shows the latest quarterly free cash flow figures, and the picture is clearer than it was in November 2025 and February 2026. Only Apple (AAPL) remains free cash flow positive.

All other AI giants burned billions in cash over the trailing-twelve-months (TTM).

Figure 1: TTM Free Cash Flow (FCF) of the Top Spenders in the AI Race

MORE FOR YOU

AI Spenders FCF TTM 1Q26

New Constructs, LLC

Due to fiscal years, Oracle data is the TTM ended February 28, 2026. Apple data is the TTM ended March 28, 2026. All other data is TTM ended March 31, 2026

From calendar 2015 through 1Q26, each of the companies in Figure 1 generated the following cumulative FCF:

Apple: $734 billionAlphabet: $259 billionMicrosoft: $63 billionMeta: ($19) billionOracle: ($182) billionAmazon: ($397) billionFigure 2 illustrates the recent decline in FCF between Apple and the rest of the AI spenders. Microsoft is particularly noteworthy. From calendar 2015-2022, Microsoft generated $174 billion cumulative FCF. From calendar 2023 through 1Q26, the company burned $111 billion in cumulative FCF.

Figure 2: Cumulative FCF of AI Spenders: 2015 – 1Q26

AI FCF Apple Vs Big Spenders

New Constructs, LLC

Due to fiscal years, Oracle data is from November 2015 through February 2026. Apple data is from December 26, 2015 through March 28, 2026. All other data is from December 31, 2015 through March 31, 2026

Decades of Cash Generation GoneThe cash burn is even more alarming when I analyze the group as a whole.

From 2015-2024, Apple, Amazon, Alphabet, Meta, Microsoft, and Oracle generated a combined $897 billion in cumulative FCF.

In calendar 2025 and 1Q26, those companies burned a combined $440 billion in FCF. Figure 3 illustrates the stark drop in FCF since 2024.

When I remove Apple, the combined cumulative FCF of Amazon, Alphabet, Meta, Microsoft, and Oracle from calendar 2015 through 1Q26 is actually -$277 billion. From 2015-2024, the cumulative FCF of these companies was $286 billion. In other words, from calendar 2025 through 1Q26, these five companies burned $563 billion in FCF.

AI wiped out many years of positive FCF generation, and we’re just getting started.

Figure 3: Combined Cumulative FCF of AI Spenders: 2015 – 1Q26

Combined Cumulative FCF of AI Spenders 2015-1Q26

New Constructs, LLC

Companies in the “Combined Cumulative FCF” analysis include Apple, Amazon, Alphabet, Meta, Microsoft, and Oracle.
Due to fiscal years, Oracle data is from November 2015 through February 2026. Apple data is from December 26, 2015 through March 28, 2026. All other data is from December 31, 2015 through March 31, 2026

Off-Balance Sheet Debt Continues to SoarIn my original analysis, I revealed that the true spending on AI emerges only fully when you look at the footnotes and find the off-balance sheet debt.

Not-yet-commenced leases are a new way to hide debt off the balance sheet post recent accounting rule changes (ASC 842 and IFRS 16). I find and include these lease obligations in my total debt and invested capital calculations to ensure I capture all the capital companies employ to generate revenue.

Since that original report, the liabilities associated with the AI race have soared even higher.

From calendar 2023 to calendar 1Q26, the value of not-yet-commenced leases at Apple, Alphabet, Amazon, Meta, Microsoft, and Oracle increased $671 billion.

Combined, these companies hold $823 billion in not-yet-commenced leases off-balance sheet, which is up from just $152 billion at the end of calendar 2023. See Figure 4.

Figure 4: Not-Yet-Commenced Leases: AI Spenders: 2023 – 1Q26

Not Yet Commenced Leases AI Spenders 2023-TTM1Q26

New Constructs, LLC

Due to fiscal years, Oracle’s data is from November 2023 through February 28, 2026. Apple’s data is from December 30, 2023 through March 28, 2026. All other data is from December 31, 2023 through March 31, 2026

I think most investors are unaware of the huge increase in liabilities for these companies, and as a result, are missing the huge drain on cash flows highlighted above.

The increase in not-yet-commenced leases in one quarter alone illustrates the speed at which AI spend is rising:

Figure 5: Not-Yet-Commenced Leases Rise in 1Q26

Not Yet Commenced Leases AI Spenders 2025-TTM1Q26

New Constructs, LLC

Due to fiscal years, Oracle’s data is from November 30, 2025 through February 28, 2026. All other data is from December 31, 2025 through March 31, 2026

We’re Going to Need a Bigger Fire Extinguisher to Put Out This FireIn an attempt to ease the massive cash burn, companies are laying off thousands of employees.

I pointed out how these corporate actions are just a band-aid, and not a long-term solution, in my report Shareholders Vs. Employees: The Next AI Tradeoff.

Since then, the layoffs have only accelerated.

“Amazon laying off about 14,000 corporate workers as it invests more in AI” – Oct 2025“Amazon laying off about 16,000 corporate workers in latest anti-bureaucracy push” – Jan 2026“Oracle cutting thousands in latest layoff round as company continues to ramp AI spending” – Mar 2026Meta to cut one in 10 jobs after spending billions on AI – Apr 2026Microsoft Offers Buyouts to About 7% of US Workers – Apr 2026Bloomberg noted the Meta and Microsoft layoffs were part of an effort to (emphasis added) “streamline operations and offset heavy spending on artificial intelligence.“

These cuts will no doubt free up some cash and allow each company to remain in the AI race a little longer.

However, they function more like a hand- held fire extinguisher on a five-alarm fire. There is a limit to how many employees a company can lay off before seeing diminishing returns. Without a change in AI spend, the cash burn looks as if it will force some major companies to quit or go bankrupt.

Diligence Drives AlphaLong before I provided a deep dive on the peril of top AI spenders, I scoured the market for undervalued AI stocks that were poised to win big in the AI boom.

Through this work, I found two companies:

Photronics (PLAB) – Photomasks & Microchips – October 19, 2023Arrow Electronics (ARW) – An AI/Semiconductor Stock that the Market Is Missing – July 10, 2024Since my original reports, PLAB and ARW are up 180% and 60%, respectively, and have outperformed the S&P 500 by 105% and 27%, respectively.

Meanwhile, since I first warned about Oracle and its weak standing in the AI race on November 10, 2025, the stock is down 17%.

Since that warning, PLAB is up 144%, ARW is up 77%, and the S&P 500 is up 8%.

Superior fundamental data doesn’t just identify potential risks, it also finds winners in a crowded market.

Figure 6 shows the performance of PLAB, ARW, and ORCL since I published my reports on each.

Figure 6: Performance of AI Picks: Through May 8, 2026

AI Picks Performance PLAB vs. ARW vs. ORCL

New Constructs, LLC

On May 20, 2026, Arrow Electronics Inc ARW shares rose 4.0% today, currently priced at $214.45. Over the past year, the stock has experienced significant volatility, with a 52-week range of $101.79 to $215.68.

GF Value™ verdict: Current price of $214.45 is 45.9% above GF Value™ of $146.95, indicating overvaluation.GF Score™: 85/100, reflecting a strong overall performance based on key financial metrics.Most notable signal: Insiders have sold $0.7M worth of stock in the last three months, with no buying activity. Is ARW Overvalued or Undervalued? According to the GF Value™, Arrow Electronics Inc is currently overvalued, with a significant gap between its current stock price of $214.45 and the estimated fair value of $146.95. This represents a 45.9% overvaluation, suggesting that the stock may not provide a sufficient margin of safety for potential investors. The GF Valuation label indicates that the stock is classified as "Significantly Overvalued," which raises concerns about potential downside risk if the market corrects itself in the future.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. When a stock is deemed overvalued, it poses a risk as market corrections can lead to price declines, making it essential for potential investors to remain cautious.

How Does ARW's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 15.3x 9.7x Forward P/E 10.8x N/A The current P/E (TTM) of 15.3x is 58% above its 5-year median P/E of 9.7x, indicating that the stock is trading well above its historical valuation. This elevated P/E aligns with the GF Value™ verdict of being overvalued, suggesting that the stock's current price may not be justified based on its historical earnings performance.

What Does ARW's GF Score™ Tell Us? Metric Rating GF Score™ 85/100 Financial Strength 6/10 Profitability 7/10 Growth 8/10 Valuation 5/10 Momentum 9/10 The GF Score™ of 85/100 indicates a strong overall performance, particularly in areas such as Growth (8/10) and Momentum (9/10). However, the Valuation rank of 5/10 suggests that the stock may not be priced appropriately relative to its intrinsic value, aligning with the GF Value™ assessment of overvaluation. Financial Strength at 6/10 indicates moderate stability, while Profitability at 7/10 reflects relatively healthy margins.

What Are Insiders Doing with ARW Stock? In recent months, insider activity has been predominantly selling-oriented, with insiders selling a total of $0.7 million worth of shares and no buying activity recorded. This pattern may suggest a lack of confidence among insiders regarding the stock's future price performance or possibly a strategy to capitalize on the current high valuation. Such selling activity can sometimes serve as a cautionary signal for external investors.

Given the absence of buying activity from insiders, it raises questions about their outlook on the company's future growth and financial performance.

What This Means for Investors Based on the analysis of GF Value™, Arrow Electronics Inc appears to be overvalued at its current price of $214.45 compared to the fair value estimate of $146.95. This significant discrepancy indicates that cautious investors may want to consider the risks associated with investing in a stock that is trading at such a premium.

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™?

ARW's GF Score™ is 85/100, indicating a strong overall performance based on financial metrics that have historically led to higher long-term returns.

Is ARW overvalued or undervalued?

ARW is currently overvalued, with a GF Value™ estimate of $146.95 compared to its current price of $214.45, indicating a significant potential downside.

What is ARW's P/E ratio?

ARW's P/E (TTM) ratio is 15.3x, which is 58% higher than its 5-year median P/E of 9.7x, suggesting the stock is trading above its historical valuation levels.

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].

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

Zacks Premium includes access to the Zacks Style Scores as well.

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 ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

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.

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.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking 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.

Momentum investors should take note of this Computer and Technology stock. ARW has a Momentum Style Score of A, and shares are up 15% over the past four weeks.

Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $4.73 to $17.97 per share. ARW boasts an average earnings surprise of +33.7%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, ARW should be on investors' short list.

On June 02, 2026, Arrow Electronics Inc ARW shares rose 5.0% today, closing at $228.40. Over the last week, shares have increased by 2.4%, and over the past month, the stock has surged by 23.8%. The stock has seen significant movement over the past year, with a staggering year-to-date increase of 107.3% and a 52-week range of $101.79 to $231.63.

GF Value™ verdict: Current price of $228.40 vs GF Value of $148.09 indicates a 54.2% overvaluation.GF Score™ of 81/100 suggests a strong investment potential.Notable signal: Insiders sold $5.8M in shares over the last 3 months, indicating a lack of confidence. Is ARW Overvalued or Undervalued? According to the GF Value™, Arrow Electronics Inc ARW is significantly overvalued, with its current price of $228.40 standing in stark contrast to the estimated fair value of $148.09. This represents a margin of safety of 54.2% for investors who might be looking for a more reasonably priced entry point. The GF Valuation label confirms this assessment, indicating that the stock is trading well above its intrinsic value.

This overvaluation raises several risks for potential investors. If the stock fails to meet the high expectations currently priced into it, there could be a significant correction. Conversely, if ARW manages to maintain its momentum and deliver strong financial performance, it may justify its current price, but the inherent risk remains for those considering an investment at this elevated valuation level. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

How Does ARW's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 16.3x 9.7x Forward P/E 11.5x N/A The current P/E ratio of 16.3x is 69% above its 5-year median P/E of 9.7x. This analysis suggests that ARW is trading above its historical valuation levels, which aligns with the GF Value™ verdict of being significantly overvalued. Investors should consider the implications of this elevated P/E ratio in the context of potential future earnings growth.

What Does ARW's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns (backtested 2006-2021).

Metric Rating GF Score™ 81 Financial Strength 6/10 Profitability 7/10 Growth 8/10 Valuation 3/10 Momentum 9/10 The strong GF Score™ of 81/100 indicates a solid investment profile. The highest scores are in Growth (8/10) and Momentum (9/10), suggesting that the company has potential for strong performance and positive price trends. However, the Valuation score of 3/10 is a significant concern, indicating that the current price may not be justified by the underlying fundamentals, which can pose risks to investors.

What Are Insiders Doing with ARW Stock? In the last three months, insiders have sold $5.8 million worth of Arrow Electronics Inc ARW shares without any reported buying activity. This trend of selling may reflect a lack of confidence among insiders regarding the stock’s future performance, especially given the significant overvaluation identified by the GF Value™. Investors often interpret such selling as a potential red flag, warranting closer scrutiny of the company’s fundamentals and market conditions.

What This Means for Investors Based on the analysis, Arrow Electronics Inc ARW is currently overvalued according to GF Value™, which suggests that the stock price is not justified by its intrinsic value. Potential investors should proceed with caution given the significant overvaluation and the insider selling activity.

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™?

ARW has a GF Score™ of 81/100, indicating a strong potential for long-term returns based on key financial metrics.

Is ARW overvalued or undervalued?

ARW is currently overvalued, with a GF Value™ of $148.09 compared to its current price of $228.40.

What is ARW's P/E ratio?

ARW's P/E ratio is 16.3x, which is significantly higher than its historical median P/E of 9.7x, suggesting the stock is trading above its historical valuation.

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 generally consider a stock's 52-week high a good criterion for an entry or exit point. Stocks touching new 52-week highs are often predisposed to profit-taking, resulting in pullbacks and trend reversals.

Moreover, given the high price, investors often wonder if the stock is overpriced. While the speculation is not completely baseless, not all stocks hitting a 52-week high are necessarily overpriced.

Investors might lose out on top gainers in an attempt to avoid the steep prices.

Stocks such as Bandwidth (BAND - Free Report) , Chord Energy Corporation (CHRD - Free Report) , Arrow Electronics (ARW - Free Report) and Cimpress (CMPR - Free Report) are expected to maintain their momentum and keep scaling new highs. More information on a stock is necessary to determine whether there is scope for further upside.

Here, we discuss a strategy to find the right stocks. The technique borrows from the basics of momentum investing and bets on “buy high, sell higher.”

Many times, stocks that hit a 52-week high fail to scale higher despite having potential. This is because investors fear that the stocks are overvalued and expect the price to crash.

Overvaluation is natural for most of these stocks as investors’ focus (or willingness to pay the premium) has helped them reach this level. But that does not always indicate an impending decline. Factors such as robust sales, surging profit levels, earnings growth prospects and strategic acquisitions, which encouraged investors to bet on these stocks, could keep them motivated if there are no tangible negatives. In other words, the momentum might continue.

Also, when a string of positive developments dominates the market, investors find their underreaction unwarranted, even if there are no company-specific driving forces.

We ran a screen to zero in on 52-week high stocks (trading near the high level) that hold tremendous upside potential. The screen includes parameters to shortlist stocks with strong earnings growth expectations, sturdy value metrics and price momentum.

Moreover, the screen filters stocks that are relatively undervalued compared to their peers in terms of earnings and sales, ensuring the continuation of their rally for some time.

Current Price/52 Week High >= .80: This is the ratio between the current price and the highest price at which the stock has traded in the past 52 weeks. A value greater than 0.8 implies the stock is trading within 20% of its 52-week high range.

% Change Price – 4 Weeks > 0: This ensures that the stock price has moved north over the past four weeks.

% Change Price – 12 Weeks > 0: This metric guarantees a continued upward price momentum for the stock over the past three months as well.

Price/Sales <= XIndMed: The lower, the better.

P/E using F(1) Estimate <= XIndMed: This metric measures the amount an investor puts into a company to obtain one dollar of earnings. It narrows down the list of stocks to those that are undervalued compared to the industry.

One-Year EPS Growth F(1)/F(0) >= XIndMed: This helps choose stocks that have higher growth rates than the industry. This is a meaningful indicator, as decent earnings growth adds to investor optimism.

Zacks Rank =1: No screening is complete without the Zacks Rank, which has proved its worth since its inception. It is a fundamental truth that stocks with a Zacks Rank #1 (Strong Buy) have always managed to brave adversities and beat the market average. You can see the complete list of today’s Zacks #1 Rank stocks here.

Current Price >= 5: This parameter will help screen stocks that are trading at $5 or higher.

Volume – 20 days (shares) >= 100000: The inclusion of this metric ensures that there is a substantial volume of shares, so trading is easier.

Here are our four picks out of the 24 stocks that made it through the screen:

Bandwidth presents a compelling near-term investment opportunity, anchored by accelerating fundamentals. It posted first-quarter 2026 record revenues of $209 million, up 20% year over year. Adjusted EBITDA was $26 million, up 17%. Both revenues and EBITDA exceeded the guidance. The company consequently raised its full-year 2026 revenue outlook to $880–$900 million, with adjusted EBITDA of $119–$125 million. AI-driven platform adoption is gaining real traction, most notably with Salesforce selecting Bandwidth to power voice and messaging for its Agentforce Contact Center. Multiple million-dollar-plus enterprise wins in financial services reinforce demand. In April 2026, Bandwidth was named a leader in the inaugural IDC MarketScape for Communications Engagement Platforms. Disciplined balance-sheet management, including convertible debt retirement and share repurchases, adds further conviction.

The stock has returned 381.6% in the past six months. It has a trailing four-quarter earnings surprise of 8.06%, on average.

Chord Energy presents a compelling near-term investment case grounded in solid operational fundamentals. Its first-quarter 2026 oil volumes of 158.0 MBopd surpassed the high end of guidance, prompting management to raise 2026 oil volume expectation by 2 MBopd to 161 MBopd with capital expenditure held flat at a $1.4 billion midpoint. The company's inaugural four-mile DSU lateral development — the Toonie five-well pad — was completed on time and on budget, with ~40% of 2026 Turned-In-Lines (TILs) planned as four-mile wells. Production enhancement initiatives, including AI-driven artificial lift optimization and dual-fuel frac fleets, are expected to grow volumes with minimal cost increases. The 2026 guidance targets approximately $3.1 billion in adjusted EBITDA and $1.4 billion in adjusted free cash flow, backed by $2.2 billion in liquidity.

This stock has returned 42.1% in the past six-month period. It delivered a trailing four-quarter earnings surprise of 11.41%, on average.

Arrow Electronics appears well-positioned for continued near-term momentum following a strong first-quarter 2026. Consolidated sales of $9.5 billion rose 39% year over year and surpassed the high end of its own guidance. Both Global Components ($6.64B, +39%) and Enterprise Computing Solutions ($2.83B, +39%) delivered broad-based growth across Americas, EMEA, and Asia-Pacific geographies. The company generated $700 million in operating cash flow during the quarter.

Management's second-quarter 2026 guidance projects consolidated sales of $9.15B–$9.75B, with continued EPS expansion anticipated. A freshly authorized $1 billion share repurchase program, effective May 12, 2026, signals the board’s confidence in ARW's financial strength. The May integration of Chip One Stop's e-commerce operations into arrow.com deepens Arrow's omnichannel capabilities in Japan, broadening its go-to-market reach.

This stock has surged 94.5% in the past six-month period. It has a trailing four-quarter earnings surprise of 33.71%, on average.

Cimpress is gaining fundamental ground across its key business segments. In third-quarter fiscal 2026, reported in April, it delivered 12% revenue growth and adjusted EBITDA of $100.5 million. This was the first time this metric topped $100 million in a third quarter and was up 11% year over year. Management raised full-year fiscal 2026 guidance for the second time, now targeting 9%–10% revenue growth and at least $465 million in adjusted EBITDA. VistaPrint's variable gross profit per customer grew 13% in the fiscal third quarter, its 13th consecutive quarter of gains, driven by elevated product adoption. The May 2026 acquisition of SAXOPRINT and viaprinto — generating €89.6 million in 2025 revenues — is projected to deliver returns well above 20%. Management targets at least $600 million in fiscal 2028 adjusted EBITDA with net leverage below 2.0x.

This stock has gained 34.6% in the past six months. It has a trailing four-quarter earnings surprise of 21.52%, on average.