Arrow Electronics (ARW) is identified as a compelling value stock, boasting a Zacks Rank #2 (Buy) and an "A" grade for Value. The company's valuation metrics, including a P/E of 9.44, PEG of 0.46, P/B of 0.98, P/S of 0.22, and P/CF of 9.63, are notably lower than their respective industry averages (11.52, 0.52, 1.33, 0.34, and 12.38), indicating it is likely undervalued. This favorable valuation, combined with a strong earnings outlook, positions ARW as an attractive opportunity for value-oriented investors.
Arrow Electronics (ARW) presents a compelling value proposition, supported by its Zacks Rank #2 (Buy) and a top-tier "A" grade for Value. The company's valuation is attractive across multiple key metrics when compared to its industry peers. Specifically, ARW trades at a P/E ratio of 9.44, below the industry average of 11.52, and its PEG ratio of 0.46, which accounts for earnings growth, is also more favorable than the industry's 0.52. The stock's undervaluation is further evidenced by its price-to-book (P/B) ratio of 0.98, indicating it trades below its book value and significantly under the industry average of 1.33. Additionally, its price-to-sales (P/S) of 0.22 and price-to-cash-flow (P/CF) of 9.63 are both at a considerable discount to their respective industry averages of 0.34 and 12.38. These metrics, combined with a strong earnings outlook, suggest that ARW is currently being undervalued by the broader market.
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strongly positive
Sentiment Score
0.75
Ticker Sentiment