The stock market is in a challenging place as the indices are at all-time highs, yet many individual stocks are lagging. This simply means that it's a stock picker's market.The POWR Ratings are one tool to keep you on the right side of the market. Stocks upgraded to Strong Buys have outperformed the market by a significant margin.
Below, we provide a look at three of the latest POWR Ratings upgrades: Arrow Electronics (ARW), Extreme Networks (EXTR), and Nathan’s Famous (NATH).
ARW
ARW is one of the top global electronic components specialists. ARW makes electronic components along with enterprise computing solutions. ARW’s value-added services are a legitimate revenue driver in addition to the company’s electronic components. In total, ARW has more than 150,000 customers.
ARW has an A POWR Rating. This is the highest possible grade, indicating ARW is a Strong Buy. The stock has Bs in the Value and Growth components of the POWR Ratings. ARW has Cs in the Sentiment and Stability components. Click here to find out how ARW grades out in the remainder of the POWR Rating components such as Quality and Momentum.
ARW is ranked third of 47 stocks in the Technology - Electronics space. You can find out more about the stocks in this category by clicking here.
ARW has a forward P/E ratio of 9.50. This ratio indicates ARW is slightly undervalued at its current trading price of $112. The stock has a 52-week high of $124.76 and a 52-week low of $64.15. ARW has a beta of 1.54 so it shouldn't jump or slide too much should the market fluctuate.
The analysts are bullish on ARW, setting an average target price of $124.86 for the stock. If ARW hits this target price, it will have increased by 12.55% in value. The highest analyst target price for the stock is $135. The lowest analyst target price for ARW is $115. The average analyst price target for ARW has increased by $14.72 across the previous 77 days.
EXTR
EXTR provides switching solutions for web services and content providers. EXTR’s Layer 3 switching technology boosts performance and allows for seamless scaling.
EXTR has a forward P/E ratio of 15.13 so it is fairly priced around$11 per share. The stock's 52-week high is $12.06. EXTR has a 52-week low of $43.73. EXTR has a beta of 2.02 so it will fluctuate a bit should the market get rocky.
EXTR has Bs in the Quality, Value, and Growth components of the POWR Ratings along with a C Momentum grade. You can find out how the stock fares in the Sentiment and Stability components of the POWR Ratings by clicking here.
Of the 55 publicly traded companies in the Technology - Communication/Networking space, EXTR is ranked second. You can find out more about the stocks in this sector by clicking here.
The analysts believe EXTR is underpriced. The average analyst target price for the stock is $13. If EXTR hits this price target, it will have increased by more than 18%. The highest analyst target price for EXTR is $14 while the lowest is $10.
NATH
NATH received plenty of attention this past holiday when the 4th of July hot dog eating contest took place. NATH has 200 fast-food restaurants in nearly 20 states. The stock is trading at $69.25. NATH has a 52-week high of $78.89 and a 52-week low of $50.
NATH has an A Quality component grade along with Bs in the Momentum, Value, and Stability components. You can learn more about how NATH grades out in the rest of the POWR Rating components such as Sentiment and Growth by clicking here.
NATH is ranked 6th out of 45 stocks in the Restaurants category. You can find out more about the stocks in this space by clicking here.
NATH has a year-to-date price return of 26.34%. The stock had a '20 price return of -20.24%. However, NATH has a five-year price return of 56.14%.
ARW shares were trading at $112.18 per share on Tuesday afternoon, down $0.95 (-0.84%). Year-to-date, ARW has gained 15.29%, versus a 17.27% rise in the benchmark S&P 500 index during the same period.
About the Author: Patrick Ryan
Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management.
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