Arrow Electronics (ARW) Moves 4.5% Higher: Will This Strength Last?
Arrow Electronics ARW shares ended the last trading session 4.5% higher at $242.01. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 9.8% gain over the past four weeks.
Arrow Electronics recent strength appears sustainable as broad-based customer demand, robust backlog and improving book-to-bill trends support continued growth. AI, aerospace and defense, industrial markets and higher-value services provide multiple growth drivers, while disciplined cost management should support further operating leverage.
This electronics maker is expected to post quarterly earnings of $4.98 per share in its upcoming report, which represents a year-over-year change of +106.6%. Revenues are expected to be $9.92 billion, up 28.7% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Arrow Electronics, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ARW going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Arrow Electronics is part of the Zacks Electronics - Parts Distribution industry. Wesco International WCC, another stock in the same industry, closed the last trading session 2.8% higher at $381.73. WCC has returned 9.7% in the past month.
For Wesco International, the consensus EPS estimate for the upcoming report has changed +0.8% over the past month to $4.61. This represents a change of +17.6% from what the company reported a year ago. Wesco International currently has a Zacks Rank of #2 (Buy).
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This article originally published on Zacks Investment Research (zacks.com).
