The timing appears opportune to go long in shares of Arrow Electronics, Inc. as we anticipate another pick-up in the underlying trend. Investors have an opportunity to buy the stock and target the $ 123.1.
The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
The company presents an interesting fundamental situation from a short-term investment perspective.
Its low valuation, with P/E ratio at 8.46 and 7.83 for the ongoing fiscal year and 2022 respectively, makes the stock pretty attractive with regard to earnings multiples.
The stock, which is currently worth 2021 to 0.29 times its sales, is clearly overvalued in comparison with peers.
Over the past year, analysts have regularly revised upwards their sales forecast for the company.
For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
For several months, analysts have been revising their EPS estimates roughly upwards.
There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.
As a percentage of sales and without taking into account depreciation and amortization, the company has relatively low margins.
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