May 27, 2024


Super Technology

Is Arrow Electronics (ARW) Stock Outpacing Its Computer and Technology Peers This Year? – December 9, 2021

For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Arrow Electronics (ARW Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let’s take a closer look at the stock’s year-to-date performance to find out.

Arrow Electronics is one of 647 companies in the Computer and Technology group. The Computer and Technology group currently sits at #8 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Arrow Electronics is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for ARW’s full-year earnings has moved 8.1% higher. This means that analyst sentiment is stronger and the stock’s earnings outlook is improving.

Based on the latest available data, ARW has gained about 29.4% so far this year. At the same time, Computer and Technology stocks have gained an average of 27.4%. As we can see, Arrow Electronics is performing better than its sector in the calendar year.

ASE Technology Hldg (ASX Free Report) is another Computer and Technology stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 32.5%.

Over the past three months, ASE Technology Hldg’s consensus EPS estimate for the current year has increased 7%. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Arrow Electronics is a member of the Electronics – Parts Distribution industry, which includes 4 individual companies and currently sits at #5 in the Zacks Industry Rank. On average, stocks in this group have gained 34.2% this year, meaning that ARW is slightly underperforming its industry in terms of year-to-date returns.

In contrast, ASE Technology Hldg falls under the Electronics – Semiconductors industry. Currently, this industry has 40 stocks and is ranked #41. Since the beginning of the year, the industry has moved +39.4%.

Investors with an interest in Computer and Technology stocks should continue to track Arrow Electronics and ASE Technology Hldg. These stocks will be looking to continue their solid performance.