Today's Trend
Arrow Electronics, Inc. (NYSE: ARW) shares have been trading lower despite a generally favorable update to analysts’ earnings outlook. The recent reports point to improving profit expectations, but the stock may be experiencing profit-taking after reaching a 12-month high and remains below the average analyst price target.
- Analysts tracked by American Banking News assign Arrow Electronics an average price target of $233.25, implying meaningful upside from recent trading levels. Arrow Electronics Receives $233.25 Average Price Target from Analysts
- Zacks Research raised its Arrow Electronics EPS forecasts across multiple periods, including FY2026 to $20.41 from $17.19, FY2027 to $20.08 from $16.22, and FY2028 to $19.28 from $15.33. The firm also lifted estimates for several quarterly periods, including Q3 2026 to $5.01 from $3.25 and Q3 2027 to $5.05 from $3.21.
- Zacks Research maintained a Hold rating, suggesting that the higher earnings forecasts have not yet prompted the analyst to view ARW as an outright buy. The current-year consensus EPS estimate is approximately $20.44, broadly in line with Zacks’ revised FY2026 forecast.
- The stock’s decline may reflect valuation and momentum concerns following a strong run toward its 12-month high of $237.33. Investors may also be weighing the fact that Zacks’ longer-term FY2028 estimate of $19.28 is below its FY2027 forecast, despite the upward revisions.
Overall, the news flow is fundamentally supportive because of broad upward revisions to expected earnings and an average price target above the recent share price. However, the unchanged Hold rating and recent run-up may be limiting near-term enthusiasm.