Four consecutive large earnings beats averaging roughly 32% upside and 39% year-over-year growth demonstrate strong execution, but the stock is trading above its near-term resistance target with a negative risk/reward, free cash flow converts at only 36% of reported net income, and 70% revenue concentration in global components leaves the earnings stream acutely exposed to inventory and demand cycles.
Thesis pillars
- Product Concentration Cyclical Exposure↓Deteriorating
- Fcf Quality Red Flag→Stable
- Price Above Resistance Negative Asymmetry→Stable
- +1 more pillar — see the Why tab for full reasoning
Arrow Electronics, Inc. (ARW) Stock Analysis
Technology · Electronics & Computer Distribution
Sell if holding. Engine safety override at $212.85: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 6.4/10. Specifically: Elevated put/call ratio: 1.50; Below-average business quality.
Arrow Electronics distributes electronic components to OEMs and EMS providers through its global components segment (70% of 2025 sales) and enterprise computing solutions to VARs and MSPs through global ECS (30%), serving over 85 countries via 140+ sales facilities. The company... Read more
Sell if holding. Engine safety override at $212.85: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 6.4/10. Specifically: Elevated put/call ratio: 1.50; Below-average business quality. Chart setup: No clear chart pattern; technical signals are mixed. Score 6.4/10, moderate confidence.
Passes 6/9 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio and earnings proximity 7d<=7d. Suitability: moderate.
Recent developments
updated 2026-07-31Recent Developments — Arrow Electronics, Inc.
Latest news
- NEWS Wells Fargo Maintains Underweight on Arrow Electronics, Raises Price Target to $175 — benzinga Jul 20, 2026 neutral
- NEWS 'Dell Technologies Terminates Enterprise Computing Distribution Deal With Arrow: Sources' - CRN — benzinga Jun 25, 2026 negative
- NEWS 5 Stock Picks Last Week From Wall Street's Most Accurate Analysts — benzinga Jun 8, 2026 positive
- NEWS Truist Securities Maintains Buy on Arrow Electronics, Raises Price Target to $260 — benzinga Jun 4, 2026 neutral
- NEWS This CoinShares Analyst Begins Coverage On A Bullish Note; Here Are Top 2 Initiations For Wednesday — benzinga May 13, 2026 neutral
Generated 2026-07-31T02:33:32Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHProductglobal components70%10-K Item 1: 'approximately 70% of the company's sales were from global components'
- MEDIUMProductsemiconductor products50%10-K Item 1A: 'Sales of semiconductor products and related services represented approximately 50%, 53%, and 60%, of the company's consolidated sales in 2025, 2024, and 2023, respectively.'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
1 floor-breaker·1 ceiling hit
Quality below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $212.85: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 6.4/10. Specifically: Elevated put/call ratio: 1.50; Below-average business quality. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $197.95. Score 6.4/10, moderate confidence.
Take-profit target: $216.54 (-11.3% upside). Prior stop was $197.95. Stop-loss: $197.95.
Concentration risk — Product: global components (70.0%); Target reached (-11.3% upside); Quality below floor (3.1 < 4.0).
Arrow Electronics, Inc. trades at a P/E of 15.1 (forward 9.6). TrendMatrix value score: 7.6/10. Verdict: Sell.
10 analysts cover ARW with a consensus score of 3.5/5. Average price target: $222.
What does Arrow Electronics, Inc. do?Arrow Electronics distributes electronic components to OEMs and EMS providers through its global components segment...
Arrow Electronics distributes electronic components to OEMs and EMS providers through its global components segment (70% of 2025 sales) and enterprise computing solutions to VARs and MSPs through global ECS (30%), serving over 85 countries via 140+ sales facilities. The company employs approximately 22,230 people worldwide and generated sales where no single customer exceeded 2% of 2025 consolidated revenue.