Is Arrow Electronics (ARW) Outperforming Other Computer and Technology Stocks This Year? – December 27, 2021
The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Arrow Electronics (ARW – Free Report) been one of those stocks this year? A quick glance at the company’s year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.
Arrow Electronics is a member of our Computer and Technology group, which includes 647 different companies and currently sits at #8 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Arrow Electronics is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, 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.
According to our latest data, ARW has moved about 34.5% on a year-to-date basis. Meanwhile, the Computer and Technology sector has returned an average of 26.4% on a year-to-date basis. This means that Arrow Electronics is performing better than its sector in terms of year-to-date returns.
Another stock in the Computer and Technology sector, Clearfield (CLFD – Free Report) , has outperformed the sector so far this year. The stock’s year-to-date return is 217.7%.
The consensus estimate for Clearfield’s current year EPS has increased 19.4% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Arrow Electronics belongs to the Electronics – Parts Distribution industry, a group that includes 4 individual companies and currently sits at #6 in the Zacks Industry Rank. This group has gained an average of 36.5% so far this year, so ARW is slightly underperforming its industry in this area.
Clearfield, however, belongs to the Wireless Equipment industry. Currently, this 16-stock industry is ranked #164. The industry has moved +22.2% so far this year.
Arrow Electronics and Clearfield could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.