Trade-Ideas LLC identified Arrow Electronics ( ARW) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) 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 $37.8 million.
- ARW has traded 353,880 shares today.
- ARW traded in a range 228.9% of the normal price range with a price range of $3.06.
- ARW traded below its daily resistance level (quality: 61 days, meaning that the stock is crossing a resistance level set by the last 61 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower. 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. The company operates in two segments, Global Components and Global Enterprise Computing Solutions. ARW has a PE ratio of 12. Currently there are 6 analysts that rate Arrow Electronics a buy, no analysts rate it a sell, and 2 rate it a hold. The average volume for Arrow Electronics has been 654,900 shares per day over the past 30 days. Arrow has a market cap of $5.6 billion and is part of the services sector and wholesale industry. The stock has a beta of 1.20 and a short float of 2% with 2.83 days to cover. Shares are up 9% year-to-date as of the close of trading on Monday. EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE. 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, growth in earnings per share, increase in net income, attractive valuation levels and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins. Highlights from the ratings report include:
- ARW's revenue growth has slightly outpaced the industry average of 1.0%. Since the same quarter one year prior, revenues slightly increased by 5.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- ARROW ELECTRONICS INC has improved earnings per share by 43.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ARROW ELECTRONICS INC increased its bottom line by earning $5.21 versus $4.98 in the prior year. This year, the market expects an improvement in earnings ($6.60 versus $5.21).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 36.4% when compared to the same quarter one year prior, rising from $116.18 million to $158.49 million.
- Net operating cash flow has increased to $544.14 million or 19.05% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -26.48%.
- You can view the full Arrow Electronics Ratings Report.
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