That’s why Arrow Electronics (ARW) is a strong value stock

For new and old investors, making the most of the stock market opportunities and maintaining confidence in their investments are common goals.

Even if you have an investing style you rely on, finding great stocks is made easier with Zacks Style Scores, complementary indicators that evaluate stocks based on value, growth and/or momentum characteristics.

Why investors should pay attention to this value stock

Value investors love finding good stocks at good prices, especially before the broader market recognizes a stock’s true value. Using metrics such as P/E, PEG, price-to-sales and price-to-cash flow, the Value Style Score identifies the most attractive and cheapest valued stocks.

Arrow Electronics (ARW)

Arrow Electronics Inc., based in New York, is one of the world’s largest distributors of electronic components and enterprise computing products. Arrow offers one of the most comprehensive product lines in the areas of electronic component distribution and enterprise computing solutions. In addition, the company offers a wide range of value-added services to help customers reduce their marketing time, lower total cost of ownership, introduce innovative products through demand creation opportunities, and improve their overall competitiveness.

ARW is a Zacks Rank #2 (Buy) stock with a Value Style Score of A and a VGM Score of B. Shares are currently trading at a P/E ratio of 5.1 for the current fiscal year, compared to the Electronics Parts Distribution industry’s P/E ratio of 6.5. Additionally, ARW has a PEG ratio of 1.6 and a price-to-cash-flow ratio of 5.5. Value investors should also note ARW’s price-to-sales ratio of 0.2.

Value investors don’t just look at a company’s valuation metrics; positive earnings also play a crucial role. One analyst has revised his earnings estimate for fiscal year 2022 upward in the past 60 days. The Zacks Consensus Estimate has increased by $0.89 to $21.57 per share. ARW has an average earnings surprise of 17.7%.

Given its solid Zacks Rank, notable earnings and valuation metrics, and impressive Value and VGM Style Scores, investors should take the time to consider ARW for their portfolio.

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