Arrow Electronics Inc. (ARW)
Summary
Arrow Electronics Still Has Room To Climb Past Its Highs
Arrow 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–$230 target.
Arrow Electronics: Ignored, Discounted, And Growing Fast
Arrow Electronics is a leading distributor of electronic components, hardware systems, and software with a diverse product catalog. ARW's broad portfolio reduces risk and earnings volatility but can obscure its exposure to high-growth AI infrastructure demand. The company's offerings span critical AI data center needs, including memory, storage, networking, power components, and supply chain management.
Should Value Investors Buy Arrow Electronics (ARW) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Arrow Electronics Inc. Investors
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| CE Curtis Ellergodt Rothschild Investment LLC | 2,096 | $251,192.09 | $429,428.48 | $178,236.39 | 70.96% |
 Tweedy Browne Tweedy, Browne Company LLC | 11,670 | $1.51M | $2.39M | $879,231.55 | 58.1% |
| JD Jim Dushek HARBOUR INVESTMENTS Inc. | 21 | $3,011.61 | $4,251.66 | $1,240.05 | 41.18% |
 Charles Brandes Brandes Investment Partners | 431,768 | $48.83M | $88.28M | $39.46M | 80.81% |
 Richard S. Pzena Pzena Investment Management | 211,048 | $14.62M | $43.15M | $28.54M | 195.24% |
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Arrow Electronics Inc. Profile
| Electronic Equipment, Instruments & Components Industry | Information Technology Sector | William F. Austen CEO | NYSE Exchange | 042735100 CUSIP |
| US Country | 22,230 Employees | 17 Dec 1986 Last Dividend | 16 Oct 1997 Last Split | 19 Jul 1984 IPO Date |
Overview
Arrow Electronics, Inc. is a leading supplier that provides a wide array of products, services, and solutions tailored for the electronic components and enterprise computing needs of industrial and commercial users. With a global footprint that spans the Americas, Europe, the Middle East, Africa, and the Asia Pacific, Arrow Electronics operates through two main segments: Global Components and Global Enterprise Computing Solutions. Originating in 1935 and headquartered in Centennial, Colorado, the company caters to a diverse clientele including original equipment manufacturers, value-added resellers, managed service providers, contract manufacturers, and other commercial customers.
Products and Services
Arrow Electronics, Inc. divides its offerings into two primary segments, each focusing on different aspects of the technology supply chain:
- Global Components: This segment focuses on the marketing and distribution of a broad range of electronic components. It includes:
- Semiconductor Products and Related Services: Offers a variety of semiconductor components for various applications, backed by support services.
- Interconnect, Passive, and Electromechanical Products (IP&E): Encompasses a wide range of products such as capacitors, resistors, potentiometers, power supplies, relays, switches, and connectors, catering to the needs of various industrial applications.
- Computing and Memory Products: Supplies computing solutions like processors, storage devices, and other memory products critical for both conventional and advanced computing systems.
- Other Products and Services: Offers additional products and services that complement the electronic and computing needs of various commercial customers.
- Global Enterprise Computing Solutions: This segment delivers comprehensive computing solutions and services that include:
- Datacenter and Cloud Solutions: Provides the infrastructure and services necessary for building and maintaining efficient datacenters, along with cloud computing solutions that cater to a wide array of business needs.
- Security and Analytics Solutions: Offers solutions designed to protect enterprise data and provide analytical tools to help businesses leverage their data for strategic decision-making.
- Engineering and Integration Support: Delivers high-level technical support for system design and integration, ensuring optimal system performance and compatibility.
- Warehousing and Logistics: Facilitates efficient storage, handling, and transportation solutions for electronic and computing components, helping streamline supply chain operations.
- Marketing Resources and Authorized Training: Provides access to marketing support and authorized training programs for hardware and software products, enhancing the value chain for customers and partners.
