Arrow Electronics: Record Profits, But Pending Cash
Arrow Electronics is rated Buy, contingent on converting inventory to cash and sustaining operating profit amid cyclical pressures. Recent record earnings and strong orders are driven by scarcity pricing, not clear unit growth; Q4 guidance is upbeat, but risks remain. Valuation appears attractive at 7.4x FY26 EPS, but sustainability hinges on positive cash flow and Components volume replacing scarcity pricing.
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