Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified Arrow Electronics ( ARW) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Arrow Electronics as such a stock due to the following factors:
- ARW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $51.6 million.
- ARW has traded 7,900 shares today.
- ARW is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in ARW with the Ticky from Trade-Ideas. See the FREE profile for ARW NOW at Trade-Ideas More details on ARW: Arrow Electronics, Inc. provides products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions worldwide. It operates in two segments, Global Components and Global Enterprise Computing Solutions. ARW has a PE ratio of 14.1. Currently there are 4 analysts that rate Arrow Electronics a buy, 1 analyst rates it a sell, and 4 rate it a hold. The average volume for Arrow Electronics has been 544,800 shares per day over the past 30 days. Arrow has a market cap of $5.4 billion and is part of the services sector and wholesale industry. The stock has a beta of 1.76 and a short float of 3% with 2.94 days to cover. Shares are down 0.1% year-to-date as of the close of trading on Wednesday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Arrow Electronics as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, good cash flow from operations, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- ARW's revenue growth has slightly outpaced the industry average of 4.9%. Since the same quarter one year prior, revenues rose by 13.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has increased to $215.05 million or 14.53% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -17.63%.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- ARROW ELECTRONICS INC's earnings per share declined by 18.5% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, ARROW ELECTRONICS INC reported lower earnings of $3.85 versus $4.58 in the prior year. This year, the market expects an improvement in earnings ($5.68 versus $3.85).
- You can view the full Arrow Electronics Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.