Arrow Electronics, Inc. (ARW) Buy or Sell Stock Guide

Last updated: Yesterday

The analysis below may be helpful to you if you have any of the following questions about ARW stock:

  • Is ARW a buy or a sell?
  • Should I sell or hold ARW stock today?
  • Is ARW a good buy / a good investment?
  • What are ARW analyst opinions, recommendations, ratings?

Here are ARW stock buy reasons/signals:

1. The Internet of Things should provide further growth opportunities for Arrow.

2. Arrow’s focus on smaller customers should support demand for its value-added services.

3. Secular trends such as electronification should support demand for Arrow’s electronic components.

4. ARW quarterly revenue growth was 17.10%, higher than the industry and sector average revenue growth (10.23% and 4.78%, respectively).

5. ARW profitability is improving. The YoY profit margin change was 0.06pp.

6. ARW forward P/E ratio is 9.85, and it’s low compared to its industry peers’ P/E ratios.

7. ARW Price/Sales ratio is 0.28, and it’s low compared to its industry peers’ P/S ratios.

8. ARW PEG ratio (P/E adjusted for growth) is 1.08, and it’s low compared to its industry peers’ PEG ratios.

9. ARW average analyst rating is Buy.

Here are ARW stock sell reasons/signals:

1. Broadline distributors are slowly expanding into value-added services such as supply-chain management, resulting in increased competition.

2. Weak global IT spending could put pressure on Arrow’s enterprise computing solutions products.

3. Arrow’s exposure to cyclical markets makes its revenue and margins susceptible to economic downturns.

4. ARW stock price ($84.49) is at the 52-week high. Perhaps now is a good time to sell?

5. ARW short interest (days to cover the shorts) ratio is 4.77. The stock garners more short interest than the average industry, sector or S&P 500 stock.

What are your thoughts on ARW?

If you liked this analysis, check out Buy or Sell Stock Guides for other stocks.

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