| The early days of Arrow Electronics (NYSE: ARW), dating back to 1935, saw the company selling used radios and radio parts to customers on Cortlandt Street in lower Manhattan. My, how things have changed. Now, with over $34 billion in annual revenue, the company is the largest single distributor of electronic components in the United States. The company is entrenched in its industry and serves a vital role in the supply chain for global technology. Consensus analyst estimates for Arrow's full-year 2022 earnings currently come in at $22.09 per share. With a recession looming, analysts are estimating a decrease in earnings to $17.20 per share for next year. But a decrease in earnings isn't what we are looking for as investors. Over the long term, we need growth to drive share price returns. Still, a one-year slight in earnings doesn't bother me, and we need to frame those earnings against the price that we are currently able to pay for this business. So... is Arrow a good value investment? |
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