Arrow Electronics, Inc. (ARW) Hits Fresh High: Is There Still Room to Run?

Have you been paying attention to shares of Arrow Electronics (ARW)? Shares have been on the move with the stock up 10.9% over the past month. The stock hit a new 52-week high of $234.46 in the previous session. Arrow Electronics has gained 107.6% since the start of the year compared to the 18.2% gain for the Zacks Computer and Technology sector and the 69.8% return for the Zacks Electronics - Parts Distribution industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 7, 2026, Arrow Electronics reported EPS of $5.22 versus consensus estimate of $2.81 while it beat the consensus revenue estimate by 14.7%.For the current fiscal year, Arrow Electronics is expected to post earnings of $19.15 per share on $37.06 in revenues. This represents a 73.77% change in EPS on a 20.11% change in revenues. For the next fiscal year, the company is expected to earn $19.91 per share on $38.21 in revenues. This represents a year-over-year change of 3.95% and 3.12%, respectively.Valuation MetricsWhile Arrow Electronics has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.Arrow Electronics has a Value Score of B. The stock's Growth and Momentum Scores are C and C, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 12X current fiscal year EPS estimates, which is not in-line with the peer industry average of 20.1X. On a trailing cash flow basis, the stock currently trades at 15.9X versus its peer group's average of 19.2X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Arrow Electronics currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Arrow Electronics passes the test. Thus, it seems as though Arrow Electronics shares could still be poised for more gains ahead.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.See Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks