Arrow Electronics Looks to Maintain Stellar Earnings Streak

Arrow Electronics reports second-quarter earnings tomorrow

facebook twitter linkedin

Semiconductor names like Arrow Electronics, Inc. (NYSE:ARW) are having a stellar summer. ARW is up 22.7% in 2021 ahead of the company's second-quarter earnings report, set for tomorrow before the open.

So far, ARW has outperformed earnings expectations on all four of its most recent earnings reports. However, that has resulted in post-earnings moves of only roughly 1.2%. For tomorrow's report, the options market is pricing in a larger-than-usual post-earnings of 4.2%. 

Arrow Electronics stock took a breather after its May 25 record high of $124.76, but the pullback was contained by its 160-day moving average. A positive post-earnings reaction could sway analyst too, considering all three maintain a tepid "hold" rating.

ARW Stock Chart

Arrow Electronics stock currently trades at a low price-earnings ratio of 12.52 and has an even better forward price-earnings ratio of 10.78. However, Arrow Electronics has struggled to find consistency on its top- and bottom-line growth, experiencing back-to-back years of revenue declines in fiscal 2019 and fiscal 2020, as well as a massive drop in net income for fiscal 2019. Arrow Electronics also has a shaky balance sheet with $2.27 billion in total debt and only $227.7 million in cash. Overall, Arrow Electronics stocks isn’t the most fundamentally sound stock, but ahead of earnings the stock does offer a very attractive valuation which best suits investors with a high risk tolerance.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners