10 Overlooked Tech Stocks to Buy Now

5. Arrow Electronics, Inc. (NYSE:ARW)

P/E Ratio: 14.84

Hedge Fund Holders: 35

Arrow Electronics, Inc. (NYSE:ARW) is a prominent player in the technology industry, providing thousands of industrial and commercial customers with critical electrical components and business computer solutions. Arrow’s Global Components and Global Enterprise Computing Solutions (ECS) segments operate in the Americas, EMEA, and Asia-Pacific, powering industries ranging from aerospace and energy to cloud and AI infrastructure.

This neglected technology stock recently demonstrated its resilience with impressive fourth-quarter 2024 results. Arrow Electronics, Inc. (NYSE:ARW) exceeded expectations in the quarter ended December 31, 2024, with sales of $7.3 billion and non-GAAP EPS of $2.97. Its Global Components division generated $4.8 billion in sales despite persistent softness in several verticals, while ECS sales increased 12% year-over-year to $2.5 billion, driven by demand for hybrid cloud, infrastructure software, and AI solutions. Cash flow from operations totaled $326 million, and Arrow maintained its prudent capital allocation by repurchasing $50 million in shares during the quarter.

Arrow Electronics, Inc. (NYSE:ARW) is strategically preparing itself for future growth by forming relevant alliances and expanding services. In March 2025, the company expanded its private label managed and professional services portfolio in North America, with the goal of assisting channel partners in better leveraging AI, cloud, and security prospects. These services are geared towards high-demand areas such as LLM management, AI deployments, app modernization, and safe cloud backup.

Arrow Electronics, Inc. (NYSE:ARW) also expanded its product portfolio by entering a global distribution deal with Ohmite, a century-old leader in power resistors for industries such as transportation and aircraft.

Arrow Electronics, Inc. (NYSE:ARW) is quietly gaining steam and might be a lucrative buy for investors looking for overlooked tech stocks, thanks to stabilized industry circumstances, expanding cloud and AI use, and a strong financial basis.