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Are You a Value Investor? This 1 Stock Could Be the Perfect Pick

Zacks Equity Research
·2-min read

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

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Arrow Electronics (ARW)

New York-based Arrow Electronics Inc. is one of the world’s largest distributors of electronic components and enterprise computing products. Arrow provides one of the broadest product ranges in the electronic components and enterprise computing solutions distribution industries. Along with these, the company provides a wide range of value-added services to help customers reduce their marketing time, lower the total cost of ownership, introduce innovative products through demand creation opportunities and enhance their overall competitiveness.

ARW sits at a Zacks Rank #3 (Hold), holds a Value Style Score of A, and has a VGM Score of B. Compared to the Electronics - Parts Distribution industry's P/E of 7.1X, shares of Arrow Electronics are trading at a forward P/E of 4.9X. ARW also has a PEG Ratio of 1.2, a Price/Cash Flow ratio of 5.5X, and a Price/Sales ratio of 0.2X.

A company's earnings performance is important for value investors as well. For fiscal 2022, five analysts revised their earnings estimate higher in the last 60 days for ARW, while the Zacks Consensus Estimate has increased $0.40 to $22.21 per share. ARW also holds an average earnings surprise of 11.7%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding ARW to their portfolios.


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Arrow Electronics, Inc. (ARW) : Free Stock Analysis Report
 
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Zacks Investment Research