Why Arrow Electronics (ARW) is a Top Value Stock for the Long-Term

Core Viewpoint - Zacks Premium offers tools and resources to help investors make informed decisions and invest confidently in the stock market Group 1: Zacks Premium Features - Zacks Premium provides daily updates on Zacks Rank and Zacks Industry Rank, access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens [1] - The service includes Zacks Style Scores, which rate stocks based on value, growth, and momentum [2] Group 2: Zacks Style Scores - Stocks are rated from A to F based on their value, growth, and momentum qualities, with A being the highest score indicating a better chance of outperforming the market [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Group 3: Value Score - The Value Score focuses on identifying undervalued stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [3] Group 4: Growth Score - The Growth Score assesses a company's financial strength and future outlook by analyzing projected and historical earnings, sales, and cash flow [4] Group 5: Momentum Score - The Momentum Score identifies trends in stock prices and earnings outlooks, helping investors time their positions based on recent price changes [5] Group 6: VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for selecting stocks with attractive value, growth forecasts, and momentum [6] Group 7: Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to help investors build successful portfolios, with 1 (Strong Buy) stocks yielding an average annual return of +23.86% since 1988 [7][8] Group 8: Stock Example - Arrow Electronics - Arrow Electronics Inc. is a leading distributor of electronic components and enterprise computing products, offering a wide range of products and value-added services [11] - Arrow Electronics holds a 1 (Strong Buy) Zacks Rank and has a VGM Score of B, with a Value Style Score of A due to a forward P/E ratio of 11.01 [12] - The company has seen upward revisions in earnings estimates, with the Zacks Consensus Estimate increasing by $1.34 to $13.24 per share, and an average earnings surprise of +17.9% [12][13]