Arrow Electronics ARW shares ended the last trading session 6% higher at $128.41. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 7.2% gain over the past four weeks.
ARW stock is benefitting from its role as a key distributor of AI infrastructure components, capitalizing on strong enterprise demand for high-performance computing hardware and AI-accelerated servers needed for data center and edge computing deployments.
This electronics maker is expected to post quarterly earnings of $3.55 per share in its upcoming report, which represents a year-over-year change of +19.5%. Revenues are expected to be $8.1 billion, up 11.2% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Arrow Electronics, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ARW going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Arrow Electronics belongs to the Zacks Electronics - Parts Distribution industry. Another stock from the same industry, Wesco International WCC, closed the last trading session 1.2% higher at $291.3. Over the past month, WCC has returned 15.2%.
Wesco International's consensus EPS estimate for the upcoming report has changed -1% over the past month to $3.82. Compared to the company's year-ago EPS, this represents a change of +20.9%. Wesco International currently boasts a Zacks Rank of #2 (Buy).
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Arrow Electronics, Inc. (ARW): Free Stock Analysis Report WESCO International, Inc. (WCC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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