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ARW vs CNXN
Which Stock Would AI Choose? Arrow Electronics (ARW) vs. PC Connection (CNXN) Stock Comparison
Key Takeaways
- Different scales and models: ARW is a global electronic components and computing distributor with roughly $31 billion in annual sales, while CNXN is a U.S.-focused IT solutions provider generating about $3 billion in revenue.
- Both benefit from AI demand: The two companies are riding rising artificial intelligence (AI) and data-center spending, but through different product and customer mixes.
- Growth gap: ARW has posted accelerating double-digit revenue growth as the component cycle recovers, while CNXN has grown at a more modest single-digit pace.
- Valuation and risk profiles differ: ARW trades at a lower earnings multiple with higher volatility, while CNXN commands a higher multiple with lower beta and a dividend.
- Balance-sheet contrast: CNXN holds a net cash position, whereas ARW carries meaningful debt that it has been reducing.
Introduction
Technology distribution is a useful lens for gauging the health of corporate and infrastructure spending, and ARW (Arrow Electronics) and CNXN (PC Connection) offer two distinct exposures to that theme. One is a global, multi-billion-dollar components and enterprise computing powerhouse; the other is a focused, North American IT solutions specialist. Comparing their relative performance and market positioning can help traders and investors assess how different business models are responding to the same demand drivers, particularly the ongoing buildout of AI and data-center capacity. This stock comparison examines recent results, momentum, risk factors, and sentiment to clarify the trade-offs between the two names.
ARW Overview and Recent Performance
ARW (Arrow Electronics, Inc.) sources and engineers technology solutions across two core segments: Global Components, which distributes electronic components, and Global Enterprise Computing Solutions (ECS), which delivers computing, software, and infrastructure. Recent quarters have marked a sharp cyclical recovery. Revenue rose roughly 39% year over year in the first quarter of 2026 and about 32% in the second, with non-GAAP earnings per share (EPS) expanding sharply as demand broadened across industrial, transportation, aerospace, and AI-driven data-center workloads.
This momentum has lifted the share price materially in recent market activity, with a 52-week gain of more than 80%. Management has highlighted book-to-bill ratios above one, building backlog, and improved operating leverage as key drivers. The stock carries a beta near 1.2, reflecting above-average volatility, and trades at a comparatively low forward price-to-earnings (P/E) ratio. Investors, however, also weigh cyclical sensitivity and a balance sheet that still holds roughly $2.2 billion in debt, though leverage has been improving.
CNXN Overview and Recent Performance
CNXN (PC Connection, Inc.) is a Fortune 1000 IT solutions provider serving business, government, healthcare, and education customers. It operates through Business Solutions, Enterprise Solutions, and Public Sector Solutions segments, with a product mix weighted toward endpoint devices, software, and networking. Recent results have been solid but measured: first-quarter 2026 net sales rose about 3% year over year, and later quarters showed an acceleration into low-double-digit growth, with gross margin holding near the high teens.
The stock has re-rated meaningfully, gaining roughly 46% over the trailing 52 weeks and outperforming the broader market year to date. Relative to ARW, CNXN exhibits lower volatility, with a five-year beta near 0.8, and it returns capital through a small but growing dividend. Its balance sheet is notably conservative, holding a net cash position of more than $300 million. The primary watchpoints include exposure to a large, non-repeating public-sector contract and sensitivity to IT hardware demand and memory-supply constraints.
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Head-to-Head Comparison
The most fundamental contrast is scale and business mix. ARW is a global distributor whose revenue is roughly ten times that of CNXN, with deep exposure to the semiconductor component cycle and international markets. CNXN is smaller, U.S.-centric, and more concentrated in finished IT hardware and software, which gives it different margin and inventory dynamics.
Growth drivers also diverge. ARW is benefiting from a broad cyclical components recovery that has produced accelerating double-digit top-line growth and significant operating-margin expansion, whereas CNXN's growth is more gradual and tied to steady enterprise demand plus the shift from AI experimentation to production. In terms of risk, ARW's higher beta and debt load suggest greater cyclical and financial sensitivity, while CNXN's cleaner balance sheet and dividend offer a more defensive profile, albeit at a much higher earnings multiple.
Tickeron AI Verdict
Based on observable factors such as trend consistency, earnings momentum, and relative positioning, Tickeron's AI would likely favor ARW in the current environment. The stock combines sustained upward price momentum with accelerating revenue growth, expanding margins, and a lower forward earnings multiple, even as its higher volatility and debt warrant caution. CNXN presents a steadier, lower-risk profile supported by a net cash balance sheet and a dividend, but its more modest growth and richer valuation give it a less compelling relative momentum profile at present. The assessment is probabilistic and reflects current conditions rather than a fixed, forward-looking claim.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is ARW is a Hold and CNXN is a StrongBuy.
Momentum Indicator for ARW turns negative, indicating new downward trend
ARW saw its Momentum Indicator move below the 0 level on October 30, 2026. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 74 similar instances where the indicator turned negative. In 48 of the 74 cases, the stock moved further down in the following days. The odds of a decline are at 65%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for ARW turned negative on October 09, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In 25 of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at 56%.
ARW moved below its 50-day moving average on October 30, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for ARW crossed bearishly below the 50-day moving average on October 26, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 11 of 18 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 61%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ARW declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 59%.
The Aroon Indicator for ARW entered a downward trend on November 10, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where ARW's RSI Oscillator exited the oversold zone, 22 of 31 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 71%.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 5 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +7.21% 3-day Advance, the price is estimated to grow further. Considering data from situations where ARW advanced for three days, in 204 of 321 cases, the price rose further within the following month. The odds of a continued upward trend are 64%.
ARW may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 36 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 45, placing this stock slightly better than average.
The Tickeron PE Growth Rating for this company is 55 (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 57 (best 1 - 100 worst), indicating fairly steady price growth. ARW’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 64 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 65 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.316) is normal, around the industry mean (2.075). P/E Ratio (11.469) is within average values for comparable stocks, (17.566). Projected Growth (PEG Ratio) (0.892) is also within normal values, averaging (1.350). Dividend Yield (0.000) settles around the average of (0.008) among similar stocks. P/S Ratio (0.306) is also within normal values, averaging (0.418).
CNXN's RSI Indicator climbs out of oversold territory
The RSI Oscillator for CNXN moved out of oversold territory on November 10, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 25 similar instances when the indicator left oversold territory. In 19 of the 25 cases the stock moved higher. This puts the odds of a move higher at 76%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
Following a +3.99% 3-day Advance, the price is estimated to grow further. Considering data from situations where CNXN advanced for three days, in 216 of 315 cases, the price rose further within the following month. The odds of a continued upward trend are 69%.
CNXN may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on November 05, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on CNXN as a result. In 44 of 91 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 48%.
The Moving Average Convergence Divergence Histogram (MACD) for CNXN turned negative on October 14, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 42 similar instances when the indicator turned negative. In 23 of the 42 cases the stock turned lower in the days that followed. This puts the odds of success at 55%.
CNXN moved below its 50-day moving average on November 05, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for CNXN crossed bearishly below the 50-day moving average on November 05, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 7 of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 47%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CNXN declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 57%.
The Aroon Indicator for CNXN entered a downward trend on November 10, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 17 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 45, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 25 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 49 (best 1 - 100 worst), indicating steady price growth. CNXN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 68 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 83 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.097) is normal, around the industry mean (2.075). P/E Ratio (20.884) is within average values for comparable stocks, (17.566). Projected Growth (PEG Ratio) (1.971) is also within normal values, averaging (1.350). Dividend Yield (0.010) settles around the average of (0.008) among similar stocks. CNXN's P/S Ratio (0.739) is slightly higher than the industry average of (0.418).
ARW | CNXN | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 78 | 72 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 65 Fair valued | 83 Overvalued | |
PROFIT vs RISK RATING 1..100 | 36 | 17 | |
SMR RATING 1..100 | 64 | 68 | |
PRICE GROWTH RATING 1..100 | 57 | 49 | |
P/E GROWTH RATING 1..100 | 55 | 25 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
ARW's Valuation (65) in the Electronics Distributors industry is in the same range as CNXN (83) in the Information Technology Services industry. This means that ARW’s stock grew similarly to CNXN’s over the last 12 months.
CNXN's Profit vs Risk Rating (17) in the Information Technology Services industry is in the same range as ARW (36) in the Electronics Distributors industry. This means that CNXN’s stock grew similarly to ARW’s over the last 12 months.
ARW's SMR Rating (64) in the Electronics Distributors industry is in the same range as CNXN (68) in the Information Technology Services industry. This means that ARW’s stock grew similarly to CNXN’s over the last 12 months.
CNXN's Price Growth Rating (49) in the Information Technology Services industry is in the same range as ARW (57) in the Electronics Distributors industry. This means that CNXN’s stock grew similarly to ARW’s over the last 12 months.
CNXN's P/E Growth Rating (25) in the Information Technology Services industry is in the same range as ARW (55) in the Electronics Distributors industry. This means that CNXN’s stock grew similarly to ARW’s over the last 12 months.
| ARW | CNXN | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 71% | 2 days ago 76% |
| Stochastic ODDS (%) | 2 days ago 65% | 2 days ago 68% |
| Momentum ODDS (%) | 2 days ago 65% | 2 days ago 48% |
| MACD ODDS (%) | 2 days ago 56% | 2 days ago 55% |
| TrendWeek ODDS (%) | 2 days ago 61% | 2 days ago 52% |
| TrendMonth ODDS (%) | 2 days ago 58% | 2 days ago 48% |
| Advances ODDS (%) | 2 days ago 64% | 2 days ago 69% |
| Declines ODDS (%) | 7 days ago 59% | 6 days ago 57% |
| BollingerBands ODDS (%) | 2 days ago 70% | 2 days ago 69% |
| Aroon ODDS (%) | 2 days ago 57% | 2 days ago 46% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
ARW’s FA Score shows that 0 FA rating(s) are green while CNXN’s FA Score has 2 green FA rating(s).
- ARW’s FA Score: 0 green, 5 red.
- CNXN’s FA Score: 2 green, 3 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
ARW’s TA Score shows that 4 TA indicator(s) are bullish while CNXN’s TA Score has 4 bullish TA indicator(s).
- ARW’s TA Score: 4 bullish, 6 bearish.
- CNXN’s TA Score: 4 bullish, 6 bearish.
Price Growth
ARW (@Electronics/Appliance Stores) experienced а -7.00% price change this week, while CNXN (@Electronics/Appliance Stores) price change was -5.98% for the same time period.
The average weekly price growth across all stocks in the @Electronics/Appliance Stores industry was -2.73%. For the same industry, the average monthly price growth was -8.17%, and the average quarterly price growth was +20.96%.
Reported Earning Dates
ARW is expected to report earnings on Feb 04, 2027.
CNXN is expected to report earnings on Feb 10, 2027.
Industries' Descriptions
@Electronics/Appliance Stores (-2.73% weekly)The electronics/appliance stores industry includes companies that sell consumer electronics such as computers, stereo components, software, TVs, and appliances such as those for cooking and cleaning. Some companies also operate stores that rent and sell pre-recorded CDs and DVDs. Best Buy Co., Inc., Conn’s, Inc., Sears Hometown and Outlet Stores Inc. and Trans World Entertainment Corp. are some of the largest companies in this space.
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ARW and
Correlation & Price change
A.I.dvisor indicates that over the last year, ARW has been loosely correlated with SNX. These tickers have moved in lockstep 48% of the time. This A.I.-generated data suggests there is some statistical probability that if ARW jumps, then SNX could also see price increases.
| Ticker / NAME | Correlation To ARW | 1D Price Change % | ||
|---|---|---|---|---|
| ARW | 100% | +1.20% | ||
| SNX - ARW | 48% Loosely correlated | +1.83% | ||
| CIIT - ARW | 11% Poorly correlated | -1.71% | ||
| CLMB - ARW | 4% Poorly correlated | +3.82% | ||
| CNXN - ARW | 1% Poorly correlated | +2.77% | ||
| SCSC - ARW | 0% Poorly correlated | +3.11% | ||
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