Arrow Electronics stock hits 52-week low at $101.41

Published 03/04/2025, 14:50
Arrow Electronics stock hits 52-week low at $101.41

In a challenging market environment, Arrow Electronics , Inc. (NYSE:ARW) stock has touched a 52-week low, reaching a price level of $101.41. With a market capitalization of $5.27 billion and trading at a P/E ratio of 14.11, InvestingPro analysis suggests the stock is currently undervalued. This downturn reflects a significant retreat from previous valuations, marking a -20.54% change over the past year. Investors are closely monitoring the company’s performance, as this new low point could signal both a potential buying opportunity for value seekers and a moment of caution for current shareholders concerned about further declines. Arrow Electronics’ journey through the past 52 weeks has been marked by volatility, with the latest price reflecting the broader market’s response to a complex mix of economic indicators and industry-specific challenges. InvestingPro data reveals management has been actively buying back shares, and the company maintains a strong free cash flow yield - just two of twelve key insights available to subscribers.

In other recent news, Arrow Electronics reported its fourth-quarter results for 2024, with earnings per share (EPS) of $2.97 and revenues of $7.28 billion, both surpassing market expectations. Despite these strong results, BofA Securities downgraded Arrow Electronics’ stock rating from Neutral to Underperform, citing lower-than-expected forecasts for the first quarter of fiscal 2025. The downgrade included a reduction in the price target from $133 to $99, reflecting concerns over revenue and margin pressures, particularly in the European market. Additionally, Arrow Electronics entered a distribution agreement with Ohmite Manufacturing to expand the availability of power resistor solutions, enhancing its product offerings.

The company’s fourth-quarter performance showed a 7% year-over-year decline in consolidated sales, though Enterprise Computing Solutions sales grew by 12%. Arrow Electronics has been focusing on cost reduction and strategic investments in cloud and AI solutions to navigate industry challenges. Despite a decline in consolidated sales, the company expressed cautious optimism for 2025, citing improved inventory levels. The first-quarter 2025 sales guidance is projected between $5.98 billion and $6.58 billion, with EPS expected to range from $1.30 to $1.50. Arrow Electronics continues to focus on managing inventory levels and expanding its supplier and customer base to support its growth trajectory.

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