Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our opinions or reviews. Learn how we make money.

How to buy Arrow Electronics stock | 83.7

Own Arrow Electronics stock in just a few minutes.

Posted

Fact checked

Arrow Electronics, Inc is an electronics & computer distribution business based in the US. Arrow Electronics shares (ARW) are listed on the NYSE and all prices are listed in US Dollars. Arrow Electronics employs 19,300 staff and has a trailing 12-month revenue of around USD$27.4 billion.

How to buy shares in Arrow Electronics

  1. Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  3. Search for Arrow Electronics. Find the stock by name or ticker symbol: ARW. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Arrow Electronics reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. At last close price of USD$83.7, weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of Arrow Electronics, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Arrow Electronics. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

How has coronavirus impacted Arrow Electronics's share price?

Since the stock market crash in March caused by coronavirus, Arrow Electronics's share price has had significant positive movement.

Its last market close was USD$83.7, which is 6.82% up on its pre-crash value of USD$77.99 and 113.25% up on the lowest point reached during the March crash when the shares fell as low as USD$39.25.

If you had bought USD$1,000 worth of Arrow Electronics shares at the start of February 2020, those shares would have been worth USD$601.30 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth USD$1,107.35.

Arrow Electronics share price

Use our graph to track the performance of ARW stocks over time.

Arrow Electronics shares at a glance

Information last updated 2020-10-20.
Latest market closeUSD$83.7
52-week rangeUSD$39.25 - USD$85.66
50-day moving average USD$80.2131
200-day moving average USD$70.157
Wall St. target priceUSD$79.43
PE ratio 18.1422
Dividend yield N/A (0%)
Earnings per share (TTM) USD$4.769

Compare trading platforms

Compare special offers, low fees and a wide range of types of investments among top trading platforms.
Name Product Stock trade fee Asset types Option trade fee Annual fee
Vanguard
$0
Stocks, Mutual funds, ETFs, Forex
$1
$20 per year
Get a personal advisor when you open an account with at least $50,000.
Robinhood
$0
Stocks, Options, ETFs, Cryptocurrency
$0
0%
Make unlimited commission-free trades in stocks, funds, and options with Robinhood Financial.
Sofi Invest
$0
Stocks
N/A
0%
A free way to invest in stocks, ETFs and crypto.
Tastyworks
$0
Stocks, Options, ETFs, Futures
Stocks & ETFs: $1/contract to open, $0 to close, $10 max/leg
Futures: $2.50/contract to open, $0 to close
0%
Trade stocks, options, ETFs and futures on mobile or desktop with this advanced platform.
Interactive Brokers
$0
Stocks, Bonds, Options, Mutual funds, Index funds, ETFs, Futures, Cash
$0 + $0.65/contract, $1 minimum
0%
IBKR Lite offers $0 commissions, and IBKR Pro offers advanced tools for professional traders.
TD Ameritrade
$0
or $25 broker-assisted
Stocks
$0 + $0.65/contract,
or $25 broker-assisted
TD Ameritrade features $0 commission for online stock, but watch out for high short-term ETF and broker-assisted trading fees.
loading

Compare up to 4 providers

The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

Is it a good time to buy Arrow Electronics stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

Arrow Electronics price performance over time

Historical closes compared with the close of $83.7 from 2020-10-19

1 week (2020-10-23) 0.25%
1 month (2020-10-01) 5.92%
3 months (2020-07-30) 20.10%
6 months (2020-04-30) 33.03%
1 year (2019-10-30) 7.03%
2 years (2018-10-30) 26.05%
3 years (2017-10-30) 0.59%
5 years (2015-10-30) 52.21%

Is Arrow Electronics under- or over-valued?

Valuing Arrow Electronics stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Arrow Electronics's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Arrow Electronics's P/E ratio

Arrow Electronics's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 18x. In other words, Arrow Electronics shares trade at around 18x recent earnings.

That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

Arrow Electronics's PEG ratio

Arrow Electronics's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.2557. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Arrow Electronics's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Arrow Electronics's EBITDA

Arrow Electronics's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$959.1 million.

The EBITDA is a measure of a Arrow Electronics's overall financial performance and is widely used to measure a its profitability.

Arrow Electronics financials

Revenue TTM USD$27.4 billion
Operating margin TTM 2.81%
Gross profit TTM USD$3.3 billion
Return on assets TTM 3.04%
Return on equity TTM 8.11%
Profit margin 1.41%
Book value $60.486
Market capitalisation USD$6.5 billion

TTM: trailing 12 months

Shorting Arrow Electronics shares

There are currently 1.3 million Arrow Electronics shares held short by investors – that's known as Arrow Electronics's "short interest". This figure is 13.8% down from 1.5 million last month.

There are a few different ways that this level of interest in shorting Arrow Electronics shares can be evaluated.

Arrow Electronics's "short interest ratio" (SIR)

Arrow Electronics's "short interest ratio" (SIR) is the quantity of Arrow Electronics shares currently shorted divided by the average quantity of Arrow Electronics shares traded daily (recently around 662879.3814433). Arrow Electronics's SIR currently stands at 1.94. In other words for every 100,000 Arrow Electronics shares traded daily on the market, roughly 1940 shares are currently held short.

However Arrow Electronics's short interest can also be evaluated against the total number of Arrow Electronics shares, or, against the total number of tradable Arrow Electronics shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Arrow Electronics's short interest could be expressed as 0.02% of the outstanding shares (for every 100,000 Arrow Electronics shares in existence, roughly 20 shares are currently held short) or 0.0214% of the tradable shares (for every 100,000 tradable Arrow Electronics shares, roughly 21 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Arrow Electronics.

Find out more about how you can short Arrow Electronics stock.

Arrow Electronics's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Arrow Electronics.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Arrow Electronics's total ESG risk score

Total ESG risk: 11.32

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Arrow Electronics's overall score of 11.32 (as at 10/01/2020) is excellent – landing it in it in the 2nd percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Arrow Electronics is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

Arrow Electronics's environmental score

Environmental score: 3.92/100

Arrow Electronics's environmental score of 3.92 puts it squarely in the 2nd percentile of companies rated in the same sector. This could suggest that Arrow Electronics is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

Arrow Electronics's social score

Social score: 4.02/100

Arrow Electronics's social score of 4.02 puts it squarely in the 2nd percentile of companies rated in the same sector. This could suggest that Arrow Electronics is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

Arrow Electronics's governance score

Governance score: 2.87/100

Arrow Electronics's governance score puts it squarely in the 2nd percentile of companies rated in the same sector. That could suggest that Arrow Electronics is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

Arrow Electronics's controversy score

Controversy score: 1/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. Arrow Electronics scored a 1 out of 5 for controversy – the highest score possible, reflecting that Arrow Electronics has managed to keep its nose clean.

Environmental, social, and governance (ESG) summary

Arrow Electronics, Inc was last rated for ESG on: 2020-10-01.

Total ESG score 11.32
Total ESG percentile 2.26
Environmental score 3.92
Environmental score percentile 2
Social score 4.02
Social score percentile 2
Governance score 2.87
Governance score percentile 2
Level of controversy 1

Arrow Electronics share dividends

We're not expecting Arrow Electronics to pay a dividend over the next 12 months.

Have Arrow Electronics's shares ever split?

Arrow Electronics's shares were split on a 2:1 basis on 16 October 1997. So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your Arrow Electronics shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for Arrow Electronics shares which in turn could have impacted Arrow Electronics's share price.

Arrow Electronics share price volatility

Over the last 12 months, Arrow Electronics's shares have ranged in value from as little as $39.25 up to $85.66. A popular way to gauge a stock's volatility is its "beta".

ARW.US volatility(beta: 1.46)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Arrow Electronics's is 1.4617. This would suggest that Arrow Electronics's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).

Arrow Electronics overview

Arrow Electronics, Inc. provides products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions in Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates in two segments, Global Components and Global Enterprise Computing Solutions. The Global Components segment markets and distributes semiconductor products and related services; passive, electro-mechanical, and interconnect products consisting primarily of capacitors, resistors, potentiometers, power supplies, relays, switches, and connectors; and computing and memory products, as well as other products and services. The Global Enterprise Computing Solutions segment offers computing solutions, including data-center, cloud, security, and analytics solutions, as well as access to various services, including engineering and integration support, warehousing and logistics, marketing resources, and authorized hardware and software training. The company serves original equipment manufacturers, value-added resellers, as well as manages service providers, contract manufacturers, and other commercial customers. Arrow Electronics, Inc. was founded in 1935 and is based in Centennial, Colorado.

Frequently asked questions

More guides on Finder

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and finder.com Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site