Arrow Electronics said its affiliates will be dropped from a US sanctions list, sparing the Colorado-based chip distributor’s subsidiaries from a possible ban on purchases of American technologies. https://t.co/q2jdO7CIwX ...

Core Points - The U.S. Department of Commerce's Bureau of Industry and Security (BIS) has officially notified Arrow Electronics that its associated companies will be removed from the export control "Entity List" [1][3] - This removal will allow the associated companies to trade controlled technologies and products with U.S. companies without strict limitations [1][4] - The decision to remove Arrow's associated companies comes just over a month after they were initially placed on the Entity List [2][6] Summary by Sections Removal Notification - Arrow Electronics, Inc. received a notification from BIS indicating that the End-User Review Committee has decided to remove several of its associated companies from the Entity List, including Arrow China Electronics Trading Co., Ltd. and Arrow Asia Pacific Limited [3][4] - The removal will be formally published in the Federal Register and is expected to take effect in the coming weeks [4][7] Implications of Removal - The removal signifies a positive turn in the case against Arrow Electronics, which was previously listed due to alleged violations of U.S. national security or foreign policy interests [6] - The industry is closely monitoring the official announcement in the Federal Register for further details [7] Analysis of the Decision - The decision to remove Arrow from the Entity List may indicate that the U.S. government recognized the potential negative impact on its own semiconductor companies, as Arrow is a key distributor in the global chip supply chain [8] - There is speculation that Arrow may have provided compelling new evidence to demonstrate compliance, or that the situation was leveraged as a bargaining chip in broader negotiations [8][9]

Core Viewpoint - Arrow Electronics (ARW) has received a Zacks Rank 1 (Strong Buy) upgrade, indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][4][6]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for Arrow Electronics indicates expected earnings of $10.20 per share for the fiscal year ending December 2025, showing no year-over-year change [9]. - Over the past three months, analysts have increased their earnings estimates for Arrow Electronics by 0.6% [9]. - The Zacks rating system emphasizes the importance of earnings estimate revisions, which have a strong correlation with near-term stock price movements [5][7]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions [10][11]. - Arrow Electronics' upgrade to Zacks Rank 1 places it in the top 5% of stocks, suggesting potential for higher stock prices in the near term [11].

Core Viewpoint - Three stocks are highlighted with strong buy rankings and favorable value characteristics for investors to consider on October 17th Group 1: Energizer (ENR) - Energizer is a leading manufacturer and distributor of batteries and lighting products [1] - The company has a Zacks Rank of 1 (Strong Buy) [1] - The Zacks Consensus Estimate for its current year earnings has increased by 1.4% over the last 60 days [1] - Energizer has a price-to-earnings ratio (P/E) of 6.37, significantly lower than the industry average of 22.70 [2] - The company possesses a Value Score of A [2] Group 2: Scor (SCRYY) - Scor operates in the reinsurance business [2] - The company also carries a Zacks Rank of 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 6% over the last 60 days [2] - Scor has a price-to-earnings ratio (P/E) of 6.42, compared to the industry average of 8.60 [2] - The company possesses a Value Score of A [2] Group 3: Arrow Electronics (ARW) - Arrow Electronics is one of the largest distributors of electronic components and enterprise computing products [3] - The company holds a Zacks Rank of 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 0.2% over the last 60 days [3] - Arrow Electronics has a price-to-earnings ratio (P/E) of 11.57, lower than the industry average of 20.90 [3] - The company possesses a Value Score of B [3]

Core Insights - The article discusses the importance of the price-to-book (P/B) ratio as a tool for value investing, highlighting its utility in identifying undervalued stocks with strong growth potential [1][2]. Group 1: Understanding P/B Ratio - The P/B ratio is calculated by dividing the current stock price by the book value per share, indicating how much investors pay for each dollar of book value [2][6]. - A P/B ratio of less than one suggests that a stock is undervalued, while a ratio greater than one indicates overvaluation [6][7]. - The P/B ratio is particularly relevant for industries with tangible assets, such as finance and manufacturing, but may be misleading for companies with high R&D expenses or significant debt [9][10]. Group 2: Screening Criteria for Value Stocks - Stocks with a P/B ratio lower than the industry median are considered attractive, as they have room for price appreciation [12]. - Additional screening parameters include a lower price-to-sales (P/S) ratio than the industry median, a price-to-earnings (P/E) ratio below the industry average, and a PEG ratio of less than one, indicating undervaluation relative to growth prospects [13][14][15]. - Stocks must also have a minimum trading price of $5 and a substantial average trading volume to ensure liquidity [14][15]. Group 3: Selected Low P/B Stocks - StoneCo (STNE) offers financial technology solutions and has a projected 3-5 year EPS growth rate of 30.3%, with a Zacks Rank of 1 and a Value Score of B [16]. - PagSeguro Digital (PAGS) provides digital payment solutions and has a projected EPS growth rate of 14.2%, also holding a Zacks Rank of 1 and a Value Score of B [17]. - KT Corporation (KT) is a telecommunications provider with a projected EPS growth rate of 51.7% and a Zacks Rank of 2 with a Value Score of A [19]. - Arrow Electronics (ARW) is a major distributor of electronic components, with a projected EPS growth rate of 20.7% and a Zacks Rank of 2 with a Value Score of A [19]. - CVS Health has a projected EPS growth rate of 14.3% and holds a Zacks Rank of 2 with a Value Score of A [20].

Core Viewpoint - The U.S. Department of Commerce's Bureau of Industry and Security (BIS) has added 26 entities and 3 addresses to its Entity List, including Arrow Electronics' subsidiaries in China, raising concerns about compliance and supply chain stability [1][2]. Group 1: Regulatory Actions - The BIS has listed Arrow Electronics' subsidiaries for allegedly assisting in the procurement of U.S.-made electronic components for specific drone supply chains [4]. - Arrow Electronics has emphasized its commitment to compliance with U.S. export regulations and has initiated discussions with BIS to address the situation [2][4]. Group 2: Financial Impact - Arrow Electronics is one of the top four global electronic component distributors, with projected global sales of $28 billion in 2024 and $14.4 billion in the first half of 2025, indicating its significant influence on the supply chain [5]. - The timing of the listing coincides with a critical recovery period in the global semiconductor market, raising concerns about potential disruptions in distribution channels and accelerating domestic substitution processes [5]. Group 3: Future Actions - The company has started a consultation process with BIS and aims to minimize supply chain disruptions for its partners [4][5]. - The BIS regulations are now in effect, with a buffer period for in-transit goods until November 7, after which transactions will face strict licensing controls [5].

Core Viewpoint - The article discusses the recent addition of 26 entities, including 16 Chinese companies, to the U.S. Entity List due to their involvement in procuring U.S.-made electronic components used in Iranian drones, highlighting the implications for the semiconductor distribution market and potential opportunities arising from the reshuffling of channels [3][10]. Group 1: U.S. Entity List Announcement - On October 8, the U.S. Department of Commerce's Bureau of Industry and Security (BIS) announced the inclusion of 26 entities, including 16 Chinese companies and 3 addresses in Hong Kong, on the Entity List for assisting in the procurement of U.S. electronic components [3]. - Arrow Electronics' subsidiaries in mainland China and Hong Kong were also added to the Entity List, with the company stating that they have complied with export control regulations [5][6]. - The inclusion of these entities indicates a significant tightening of export controls, making it difficult for listed entities to obtain necessary export licenses for controlled items [10]. Group 2: Impact on Arrow Electronics - Arrow Electronics reported a revenue of $27.9 billion in the previous year, a 16% decline, and was surpassed by WPG Holdings, which had revenues of approximately $29.3 billion [6]. - In Q1 of this year, Arrow's sales decreased by 2% year-over-year, but in Q2, the company experienced a strong performance with sales reaching $7.6 billion, a 10% increase year-over-year and approximately 12% quarter-over-quarter [6][9]. Group 3: Other Companies on the Entity List - The Entity List also includes several electronic component distribution companies such as Beijing Plenary Technology Co., Goodview Global, Feng Bao Electronic Information Technology (Shanghai) Co., and others, indicating a broader impact on the semiconductor distribution landscape [8]. Group 4: Future Implications - The article suggests that the inclusion of Arrow's subsidiaries on the Entity List may lead to a reshuffling in the semiconductor distribution market, potentially creating new opportunities for other players in the industry [11].

Core Viewpoint - The U.S. Department of Commerce's Bureau of Industry and Security (BIS) has added 26 entities and 3 addresses to the Entity List, primarily targeting intermediaries in China and Hong Kong that procure U.S.-origin electronic components for Iran and its proxy organizations [1][6]. Group 1: Entities and Addresses Added - The list includes 16 Chinese companies and 3 addresses in Hong Kong, with a focus on disrupting networks that facilitate the procurement of U.S. electronic components for Iranian armed groups [1][2]. - The Hong Kong addresses are linked to previously sanctioned Iranian electronic supply networks, indicating that any entity registered at these addresses will face automatic licensing requirements for exports under EAR jurisdiction [2]. Group 2: Specific Companies Involved - The companies listed range from large global distributors like Arrow's subsidiaries in China and Hong Kong to various small and medium-sized technology and trading firms [3]. - Specific companies include Arrow China Electronics Trading Co., Ltd., Beijing Kevins Technology Development Co., Ltd., and Easy Fly Intelligent Technology Co., Ltd., which are implicated in the procurement of components found in drone wreckage used by Iranian proxies [3][4]. Group 3: Regulatory Implications - All listed entities and addresses will be subject to a "presumption of denial" licensing policy for all items subject to EAR, with most licensing exceptions no longer applicable [6]. - The BIS has reiterated the "50% rule," meaning any foreign entity that is directly or indirectly owned 50% or more by the listed entities will also be subject to the same licensing requirements [6]. Group 4: Broader Context and Historical Reference - The inclusion of Arrow's subsidiaries marks a significant shift from a previous situation in 2020 where Arrow was not listed despite being part of a draft list of entities [7][8]. - This change reflects a broader enforcement logic and potential shifts in U.S. policy regarding global supply chains and geopolitical tensions [8].

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on ...

I see Arrow Electronics, Inc. (NYSE: ARW ) as a company that is edging into a recovery, but the story is still uneven. Components are showing early signs of life, and ECS continues to build momentum with strong cloud andI’m Emmanuel Onwusah—a financial analyst, writer, and recovering engineer. I hold FMVA® and BIDA® certifications from the Corporate Finance Institute, and I spend most of my time creating pitch decks, building models, analyzing companies, and trying to make sense of where value meets narrati ...