Arrow Electronics, Inc. (ARW) Hit a 52 Week High, Can the Run Continue?

Have you been paying attention to shares of Arrow Electronics (ARW)? Shares have been on the move with the stock up 16.2% over the past month. The stock hit a new 52-week high of $219.01 in the previous session. Arrow Electronics has gained 97.3% since the start of the year compared to the 17.5% gain for the Zacks Computer and Technology sector and the 66.8% 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 $17.97 per share on $35.66 in revenues. This represents a 63.07% change in EPS on a 15.58% change in revenues. For the next fiscal year, the company is expected to earn $19.48 per share on $36.88 in revenues. This represents a year-over-year change of 8.39% and 3.42%, respectively.

Valuation Metrics

Though Arrow Electronics has recently hit a 52-week high, what is next for Arrow Electronics? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. 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 12.1X current fiscal year EPS estimates, which is not in-line with the peer industry average of 19.8X. On a trailing cash flow basis, the stock currently trades at 15.1X versus its peer group's average of 18.9X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to look at the Zacks Rank for the stock, 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 favorable earnings estimate revisions from covering analysts.

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 fits the bill. Thus, it seems as though Arrow Electronics shares could have a bit more room to run in the near term.

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This article originally published on Zacks Investment Research (zacks.com).

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