Validea's Leading Information Technology Stocks Inspired by Benjamin Graham - 10/24/2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 24 2025
0mins
Should l Buy ARW?
Source: NASDAQ.COM
Top Rated IT Stocks: Arrow Electronics Inc. (ARW) is highlighted as a top-rated stock according to Validea's Value Investor model, which follows Benjamin Graham's deep value methodology focusing on low P/B and P/E ratios, low debt, and solid long-term earnings growth.
Company Overview: Arrow Electronics sources and engineers technology for various manufacturers and service providers, operating in global components and enterprise computing solutions, with a presence in over 85 countries.
Graham's Investment Philosophy: Benjamin Graham, known as the "Father of Value Investing," significantly influenced the investment world, mentoring notable investors like Warren Buffett and achieving impressive returns during his career.
Validea's Research Service: Validea provides investment research based on the strategies of legendary investors, offering stock analysis and model portfolios aimed at long-term market outperformance.
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Analyst Views on ARW
Wall Street analysts forecast ARW stock price to fall
2 Analyst Rating
0 Buy
1 Hold
1 Sell
Moderate Sell
Current: 155.640
Low
94.00
Averages
107.00
High
120.00
Current: 155.640
Low
94.00
Averages
107.00
High
120.00
About ARW
Arrow Electronics, Inc. sources and engineers’ technology for thousands of manufacturers, service providers, and users of enterprise computing solutions. Its segments include global components and global ECS. It distributes electronic components to original equipment manufacturers and equipment manufacturers providers through its global components segment and provides enterprise computing solutions to value-added resellers and managed service providers through its global ECS reportable segment. The global ECS portfolio includes datacenter, cloud, security, and analytics solutions. Global ECS further supports customers by enabling their software and cloud solutions businesses through ArrowSphere, a software and cloud marketplace and management platform. It maintains over 140 sales facilities and 36 distribution and value-added centers, serving over 85 countries. It has operations in each of the three electronics markets, including the Americas, the EMEA and the Asia/Pacific regions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Arrow Electronics Launches Strategic Initiative for E/E Architecture
- E/E Architecture Innovation: Arrow Electronics has launched a strategic initiative to support next-generation vehicle electrical and electronic architecture, aimed at assisting automotive manufacturers in navigating the shift towards software-defined vehicles and enhancing industry competitiveness.
- System Integration Benefits: The new architecture reduces internal wiring by up to 20% through centralized management of multiple functions, resulting in lighter, more energy-efficient vehicles while simplifying the update process and enhancing user experience.
- Technology and Supply Chain Integration: Arrow's design engineering services combine expertise in semiconductors and IP&E, ensuring automotive manufacturers have diversified and traceable component options, thereby mitigating production risks.
- Research Hub Support: To aid in the redesign of E/E architecture, Arrow has launched a dedicated online research hub that provides technical insights, whitepapers, and design tools, helping engineers and procurement leaders accelerate time-to-market.
See More
Arrow Electronics Launches Strategic Initiative for E/E Architecture
- Strategic Initiative Launch: Arrow Electronics has launched a strategic initiative for E/E architecture to support next-generation vehicle electrical systems, facilitating the shift from hardware-centric to intelligent, software-defined mobility, which is expected to significantly enhance design efficiency and market responsiveness for automotive manufacturers.
- System Integration Benefits: The new architecture consolidates hundreds of individual components into a centralized system, reducing internal wiring by up to 20%, resulting in lighter, more energy-efficient vehicles that simplify maintenance through software updates, thereby improving user experience.
- Technology and Supply Chain Integration: Arrow ensures automotive manufacturers have access to necessary components and technical support during the E/E architecture transition through its global engineering team and robust supply chain services, enhancing its competitiveness in the semiconductor and IP&E sectors.
- Research Hub Establishment: To support engineers and procurement leaders, Arrow has launched a dedicated research hub providing technical insights, whitepapers, and design tools for E/E architecture development, further solidifying its leadership position in the automotive industry.
See More
Arrow Electronics Q4 Earnings Exceed Expectations
- Strong Earnings Report: Arrow Electronics reported a Q4 non-GAAP EPS of $4.39, beating expectations by $0.83, with revenue reaching $8.75 billion, a 20.2% year-over-year increase, exceeding forecasts by $590 million, indicating robust market demand and execution.
- Positive Future Outlook: The company projects Q1 2026 consolidated sales between $7.95 billion and $8.55 billion, with global components sales expected to be $5.75 billion to $6.15 billion and enterprise computing solutions sales between $2.20 billion and $2.40 billion, showcasing ongoing growth potential.
- Robust Net Income Projections: Expected diluted net income per share ranges from $2.13 to $2.33, with non-GAAP diluted net income per share between $2.70 and $2.90, reflecting effective strategies in cost control and profitability enhancement.
- Significant Currency Impact: Changes in foreign currencies are expected to increase sales by approximately $263 million and diluted EPS by $0.10, demonstrating the company's adaptability in the global market and the positive influence of external factors.
See More
Arrow Electronics Q4 2025 Earnings Highlights
- Significant Revenue Growth: Arrow Electronics reported Q4 2025 revenue of $8.7 billion, a 20% year-over-year increase that exceeded expectations, indicating strong performance in market recovery and likely boosting shareholder returns.
- Value-Added Services Expansion: In 2025, the contribution of value-added services to total operating income rose from under 20% to approximately 30%, a strategic shift that is expected to drive higher profit growth and enhance market competitiveness.
- Stock Buyback Program: The company repurchased $50 million in stock during Q4, bringing total buybacks since 2020 to $3.6 billion, demonstrating management's confidence in future growth and commitment to shareholders.
- Optimistic Outlook: Management projects Q1 2026 sales between $7.95 billion and $8.55 billion, representing a 21% year-over-year increase, reflecting gradual improvement in market demand and sustained growth potential in key sectors.
See More
Arrow Electronics Set to Announce Q4 Earnings on February 5th
- Earnings Announcement Date: Arrow Electronics is scheduled to release its Q4 earnings on February 5th after market close, with a consensus EPS estimate of $3.57, reflecting a 20.2% year-over-year growth, indicating sustained profitability.
- Revenue Expectations: The anticipated revenue for Q4 is $8.16 billion, representing a 12.0% year-over-year increase, showcasing strong market demand despite facing some margin pressures.
- Historical Performance: Over the past two years, Arrow Electronics has exceeded EPS estimates 100% of the time and revenue estimates 88% of the time, demonstrating the company's robust forecasting capabilities and bolstering investor confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates saw one upward revision and three downward adjustments, while revenue estimates experienced no upward revisions and four downward adjustments, potentially reflecting a cautious market outlook on the company's future performance.
See More
Arrow Electronics Named to Fortune's Most Admired Companies List for 26th Time
- Honor Recognition: Arrow Electronics has been named to Fortune's World's Most Admired Companies list for the 26th time, ranking among the top in the 'Wholesalers: Electronics and Office Equipment' category, highlighting its leadership and brand influence in the industry.
- Financial Soundness: The company was recognized for its high performance in financial soundness and product/service quality, further solidifying its competitive advantage in the global market.
- Executive Feedback: The list is based on input from thousands of executives, directors, and members of the financial community, reflecting Arrow's strong reputation and trust within the industry.
- Sales Performance: Arrow Electronics anticipates global sales of $28 billion in 2024, indicating robust growth potential and market demand for its technology solutions.
See More
Arrow Electronics Launches Strategic Initiative for E/E Architecture
- E/E Architecture Innovation: Arrow Electronics has launched a strategic initiative to support next-generation vehicle electrical and electronic architecture, aimed at assisting automotive manufacturers in navigating the shift towards software-defined vehicles and enhancing industry competitiveness.
- System Integration Benefits: The new architecture reduces internal wiring by up to 20% through centralized management of multiple functions, resulting in lighter, more energy-efficient vehicles while simplifying the update process and enhancing user experience.
- Technology and Supply Chain Integration: Arrow's design engineering services combine expertise in semiconductors and IP&E, ensuring automotive manufacturers have diversified and traceable component options, thereby mitigating production risks.
- Research Hub Support: To aid in the redesign of E/E architecture, Arrow has launched a dedicated online research hub that provides technical insights, whitepapers, and design tools, helping engineers and procurement leaders accelerate time-to-market.
See More
Arrow Electronics Launches Strategic Initiative for E/E Architecture
- Strategic Initiative Launch: Arrow Electronics has launched a strategic initiative for E/E architecture to support next-generation vehicle electrical systems, facilitating the shift from hardware-centric to intelligent, software-defined mobility, which is expected to significantly enhance design efficiency and market responsiveness for automotive manufacturers.
- System Integration Benefits: The new architecture consolidates hundreds of individual components into a centralized system, reducing internal wiring by up to 20%, resulting in lighter, more energy-efficient vehicles that simplify maintenance through software updates, thereby improving user experience.
- Technology and Supply Chain Integration: Arrow ensures automotive manufacturers have access to necessary components and technical support during the E/E architecture transition through its global engineering team and robust supply chain services, enhancing its competitiveness in the semiconductor and IP&E sectors.
- Research Hub Establishment: To support engineers and procurement leaders, Arrow has launched a dedicated research hub providing technical insights, whitepapers, and design tools for E/E architecture development, further solidifying its leadership position in the automotive industry.
See More
Arrow Electronics Q4 Earnings Exceed Expectations
- Strong Earnings Report: Arrow Electronics reported a Q4 non-GAAP EPS of $4.39, beating expectations by $0.83, with revenue reaching $8.75 billion, a 20.2% year-over-year increase, exceeding forecasts by $590 million, indicating robust market demand and execution.
- Positive Future Outlook: The company projects Q1 2026 consolidated sales between $7.95 billion and $8.55 billion, with global components sales expected to be $5.75 billion to $6.15 billion and enterprise computing solutions sales between $2.20 billion and $2.40 billion, showcasing ongoing growth potential.
- Robust Net Income Projections: Expected diluted net income per share ranges from $2.13 to $2.33, with non-GAAP diluted net income per share between $2.70 and $2.90, reflecting effective strategies in cost control and profitability enhancement.
- Significant Currency Impact: Changes in foreign currencies are expected to increase sales by approximately $263 million and diluted EPS by $0.10, demonstrating the company's adaptability in the global market and the positive influence of external factors.
See More
Arrow Electronics Q4 2025 Earnings Highlights
- Significant Revenue Growth: Arrow Electronics reported Q4 2025 revenue of $8.7 billion, a 20% year-over-year increase that exceeded expectations, indicating strong performance in market recovery and likely boosting shareholder returns.
- Value-Added Services Expansion: In 2025, the contribution of value-added services to total operating income rose from under 20% to approximately 30%, a strategic shift that is expected to drive higher profit growth and enhance market competitiveness.
- Stock Buyback Program: The company repurchased $50 million in stock during Q4, bringing total buybacks since 2020 to $3.6 billion, demonstrating management's confidence in future growth and commitment to shareholders.
- Optimistic Outlook: Management projects Q1 2026 sales between $7.95 billion and $8.55 billion, representing a 21% year-over-year increase, reflecting gradual improvement in market demand and sustained growth potential in key sectors.
See More
Arrow Electronics Set to Announce Q4 Earnings on February 5th
- Earnings Announcement Date: Arrow Electronics is scheduled to release its Q4 earnings on February 5th after market close, with a consensus EPS estimate of $3.57, reflecting a 20.2% year-over-year growth, indicating sustained profitability.
- Revenue Expectations: The anticipated revenue for Q4 is $8.16 billion, representing a 12.0% year-over-year increase, showcasing strong market demand despite facing some margin pressures.
- Historical Performance: Over the past two years, Arrow Electronics has exceeded EPS estimates 100% of the time and revenue estimates 88% of the time, demonstrating the company's robust forecasting capabilities and bolstering investor confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates saw one upward revision and three downward adjustments, while revenue estimates experienced no upward revisions and four downward adjustments, potentially reflecting a cautious market outlook on the company's future performance.
See More
Arrow Electronics Named to Fortune's Most Admired Companies List for 26th Time
- Honor Recognition: Arrow Electronics has been named to Fortune's World's Most Admired Companies list for the 26th time, ranking among the top in the 'Wholesalers: Electronics and Office Equipment' category, highlighting its leadership and brand influence in the industry.
- Financial Soundness: The company was recognized for its high performance in financial soundness and product/service quality, further solidifying its competitive advantage in the global market.
- Executive Feedback: The list is based on input from thousands of executives, directors, and members of the financial community, reflecting Arrow's strong reputation and trust within the industry.
- Sales Performance: Arrow Electronics anticipates global sales of $28 billion in 2024, indicating robust growth potential and market demand for its technology solutions.
See More
