Arrow Electronics - Aggressive Growth

Shares of ARW are surging, but it is not too late to get in this Zacks #2 Rank (Buy).

Company Description

Arrow offers industrial and commercial electronics, services and computing solutions. The company works with over 900 suppliers and 125,000 OEMs around the world.

Record Quarter

On Feb 2 Arrow announced record quarterly results. Sales jumped 25% to $5.24 billion. Net income came in at $158 million, about 2.5 times the same period last year. Earnings broke down to $1.29 per share, more than doubling year-over-year and 2 cents ahead of expectations. The quarter put an exclamation point on a year that saw record revenue and earnings per share and was the company's ninth consecutive surprise.

Arrow's management sounded optimistic moving forward. The comments in the press release focused on gaining market share as an even strong company emerged from the recession.

The Zacks Consensus Estimate for full-year 2011 is already starting to climb. We had 5 upward revisions into the number and 2 since the report, pushing this year's average estimate to $4.50, from $4.37.

Next year's forecasts are averaging $4.88, up from $4.67. This would give Arrow annual growth rates of 9% and 8%, respectively.

Arrow is the top rated company of its 5 peers. The industry currently ranks 36th out of 264 at Zacks.com. So, its a great company in a hot industry.

Don't worry about overpaying for shares of ARW. The stock can be yours for only 9 times forward estimates. And we are expecting that to move high as more estimates come in over the next couple weeks. Arrow's PEG ratio is only 0.23 and its price-to-sales is an enticing 0.25.

Shares of ARW have been screaming since being featured as a Zacks Rank Buy in September, then again in November. You may be reluctant to get in after such a big move, but you can see those earnings trends justify the current move and then some.

Read the November 22nd Feature Here

Bill Wilton is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Small Cap Trader service

This Week's Aggressive Growth Zacks Rank Buy Stocks

Sanmina-SCI (SANM) analysts are looking for sizable growth for the next couple of years. Estimates continue to inch higher, pushing shares to a Zacks #1 Rank (Strong Buy).

Read Full Article.

Arctic Cat, Inc (ACAT) beat Wall Street's expectations last week and raised its guidance once again.

With winter storms making headlines this season, it is no surprise that ACAT is hitting new highs. And thanks to rising estimates, it is now a Zacks #1 Rank (Strong Buy).

Read Full Article.

Super Micro Computer, Inc. (SMCI) is coming off of a record-setting quarter for both sales and net income. Estimates are moving higher, giving the stock a Zacks #1 Rank (Strong Buy).

Shares did move higher on the earnings news, but given the valuations, it is not too late to make a profit on SMCI.

Read Full Article.