The Relative Strength (RS) Rating for Arrow Electronics on Thursday climbed to 72, up from 69 the day before. The rating upgrade was a welcome improvement but it only tells half the company's story.
The upgraded 72 Relative Strength Rating means that Arrow Electronics stock has outperformed 72% of stocks on price performance. The RS Rating is a 1-99 score of a stock's 12-month performance. Leading stocks tend to have RS Ratings of 80 before big price runs, so Arrow has work to do to be among the best stocks to buy and watch.
Arrow Electronics Stock's Other Ratings Sparkle
However, check out its other key ratings. It boasts a 95 Earnings Per Share Rating, putting it in the top 5% of companies for profit growth in recent quarters and years. The Denver area electronics components and systems distributor has a strong 86 Composite Rating, indicating overall strength. And its C+ Accumulation/Distribution Rating on an A+ to E scale shows that more funds are buying its stock than selling.
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Arrow Electronics is trying to complete a cup-without-handle base with a 129.66 buy point. See if the stock can break out in volume at least 40% above average. It's not far from the breakout point, and it's up 31% from a mid-October low of 89.38. On Thursday, Arrow Electronics stock rose about 0.8% to 117.40.
Quarterly Profit Growth Ranged 35% to 91%
The company recorded a 35% surge in earnings per share, on a year-over-year basis, to $5.45 last quarter. The prior three stanzas its EPS grew 69%, 91% and 73%. Sales last quarter grew 9% to $9.27 billion. The company says on its website it will hold a news conference after the market closes on Feb. 2 to discuss its fourth quarter results.
Arrow holds the No. 9 rank among its peers in the Electronics-Parts industry group. Bel Fuse B and CTS Corp. are among the group's highest-rated stocks.
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