ARW Stock Analysis — Arrow Electronics
Sector: Tech Hardware Distribution
AI Verdict
Arrow is cheap for the growth you're getting, but the moat of distribution scale must keep delivering to justify the market's sharp discount to hardware peers.
Competitive Moat
Arrow Electronics operates as a global distributor of electronic components and enterprise computing solutions, leveraging deep supplier relationships and integrated logistics to create switching costs for customers. Its scale and inventory management systems make it hard for smaller rivals to match breadth and speed of delivery.
Summary
ARW's forward P/E of 9.8x with 95.3% expected EPS growth makes it a rare value standout in tech hardware.
Where It Stands
Arrow trades at 9.8x next year's earnings versus a sector median of 25x, with trailing EPS growth of 95.3% expected — a steep discount for the projected growth.
Key Metrics
- Trailing P/E: 19.1x
- Forward P/E: 9.8x
- PEG Ratio: 0.20
- Earnings Growth: +1.0%
- Revenue Growth: +0.3%
- 52-Week High: $237.33
- 52-Week Low: $101.79
Analyst Consensus
6 Buy · 3 Hold · 1 Sell (10 analysts)
Bull Case
A forward P/E of 9.8x with 95.3% EPS growth expected means you're paying a bargain price for explosive earnings momentum.
Bear Case
If the forward P/E reverts closer to the sector median of 25x, any miss on that 95.3% EPS growth could trigger a sharp rerating downward.
Catalyst to Watch
Watch for quarterly earnings — any confirmation or miss on the 95.3% EPS growth expectation will likely drive a major move.