Arrow Electronics, Inc. (NYSE:ARW) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. Investors have been pretty optimistic on Arrow Electronics too, with the stock up 13% to US$214 over the past week. Could this upgrade be enough to drive the stock even higher?

Following the upgrade, the most recent consensus for Arrow Electronics from its four analysts is for revenues of US$39b in 2026 which, if met, would be a meaningful 16% increase on its sales over the past 12 months. Statutory earnings per share are presumed to soar 24% to US$17.61. Prior to this update, the analysts had been forecasting revenues of US$35b and earnings per share (EPS) of US$10.38 in 2026. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 41% to US$215 per share.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Arrow Electronics' past performance and to peers in the same industry. One thing stands out from these estimates, which is that Arrow Electronics is forecast to grow faster in the future than it has in the past, with revenues expected to display 22% annualised growth until the end of 2026. If achieved, this would be a much better result than the 3.5% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 13% per year. So it looks like Arrow Electronics is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Arrow Electronics could be worth investigating further.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Arrow Electronics analysts - going out to 2028, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.