Why Arrow Electronics (ARW) Ranks Among Leading Momentum Stocks for Sustained Growth

Unlocking Stock Market Potential with Zacks Premium

Whether you’re new to investing or have years of experience, making the most of the stock market and investing with assurance are universal ambitions. Zacks Premium offers a variety of resources to help you reach these goals.

Subscribers gain daily updates on the Zacks Rank and Zacks Industry Rank, unrestricted access to the Zacks #1 Rank List, comprehensive Equity Research reports, and exclusive Premium stock screening tools. These features are designed to empower you to make smarter, more confident investment decisions.

Additionally, Zacks Premium members can utilize the Zacks Style Scores.

Understanding Zacks Style Scores

Created to complement the Zacks Rank, the Zacks Style Scores are a set of indicators that assist investors in identifying stocks with the highest likelihood of outperforming the market in the next month.

Each stock receives a letter grade—A, B, C, D, or F—based on its value, growth, and momentum characteristics. An “A” rating signals the greatest potential, followed by “B,” “C,” and so on, making it easy to spot stocks with the best prospects.

The Style Scores system is divided into four main categories:

Value Score

Value investors seek quality stocks trading below their intrinsic worth, ideally before the wider market recognizes their potential. The Value Score uses metrics such as P/E, PEG, Price/Sales, and Price/Cash Flow ratios to highlight stocks that are both attractively priced and undervalued.

Growth Score

Growth-focused investors prioritize a company’s future outlook and financial strength. The Growth Score evaluates factors like projected and historical earnings, sales, and cash flow to pinpoint companies poised for sustained expansion.

Momentum Score

Momentum investors aim to capitalize on prevailing trends in stock prices or earnings forecasts. The Momentum Score considers short-term price movements and changes in earnings estimates to help identify optimal moments to invest in high-momentum stocks.

VGM Score

For those seeking a blend of value, growth, and momentum, the VGM Score combines all three Style Scores into a single rating. This composite score helps investors find companies that excel across multiple investment styles and works especially well alongside the Zacks Rank.

How Style Scores Enhance the Zacks Rank

The Zacks Rank is a proprietary rating system that leverages changes in earnings estimates to guide investors toward building a successful portfolio.

Since 1988, stocks rated #1 (Strong Buy) have delivered an average annual return of +23.86%, more than doubling the S&P 500’s performance over the same period. However, with hundreds of stocks earning top ranks each day, narrowing down your choices can be daunting.

This is where Style Scores become invaluable.

To optimize your investment results, focus on stocks with a Zacks Rank of #1 or #2 and Style Scores of A or B. If you’re considering stocks with a #3 (Hold) rating, prioritize those with high Style Scores to maximize potential gains.

Always consider the direction of earnings estimate revisions, as Style Scores are designed to work in tandem with the Zacks Rank.

For example, a stock rated #4 (Sell) or #5 (Strong Sell), even with high Style Scores, is likely facing negative earnings trends and a greater risk of price decline.

Owning more stocks with top Zacks Ranks and high Style Scores increases your chances of success.

Featured Stock: Arrow Electronics (ARW)

Arrow Electronics Inc., based in New York, ranks among the world’s largest distributors of electronic components and enterprise computing solutions. The company offers an extensive product portfolio and a range of value-added services, helping clients accelerate time-to-market, reduce ownership costs, innovate through demand creation, and boost competitiveness.

Currently, ARW holds a #1 (Strong Buy) Zacks Rank and a VGM Score of B.

This Computer and Technology sector stock is particularly appealing to momentum investors. ARW has earned a Momentum Style Score of B, with its share price rising 14.9% in the past month.

In the last two months, four analysts have raised their earnings forecasts for fiscal 2026, pushing the Zacks Consensus Estimate up by $1.34 to $13.24 per share. ARW has also delivered an average earnings surprise of +17.9%.

With a strong Zacks Rank and impressive Momentum and VGM Scores, ARW stands out as a top candidate for investors’ watchlists.

Top Analyst’s “Best Pick to Double” Revealed

Out of thousands of stocks, five Zacks experts have each selected their top choice expected to soar by 100% or more in the coming months. Among these, Director of Research Sheraz Mian has identified the one with the highest explosive potential.

This company, which targets millennial and Gen Z consumers, generated nearly $1 billion in revenue last quarter. A recent dip in its share price presents a compelling entry point. While not every elite pick is a winner, this stock could outperform previous Zacks selections like Nano-X Imaging, which surged over 129% in just over nine months.