An analysis of momentum investing strategy identifies four stocks trading near their 52-week highs with strong earnings growth and undervalued metrics. HPE, ARW, KSS, and GCT are highlighted as having potential for continued upside, supported by positive catalysts, robust guidance, and consistent earnings surprises.

Avnet (AVT) delivered robust fiscal Q4 2026 results with sales surging 47.7% to $8.3 billion and adjusted operating margin expanding to 3.8%. The company forecasts Q1 FY2027 sales of $9-$9.3 billion with adjusted EPS of $2.80-$2.90, representing 241% year-over-year earnings growth. AVT stock has outperformed its industry significantly while trading at a valuation discount.

Avnet (AVT) achieved record IP&E sales in fiscal Q4 2026 with full-year revenues approaching $5 billion and forecasts 10% sequential growth for Q1 fiscal 2027. Despite an 88.5% one-year stock surge, AVT trades below industry valuation multiples at 0.23X P/S versus 0.37X industry average, earning a Zacks Rank #1 Strong Buy rating. The company benefits from AI infrastructure demand, expanding margins, and strong performance across all end markets.

TD SYNNEX reported that customers using its digital platforms increased spending at nearly twice the rate of comparable customers in Q3 FY2026. The company's PartnerFirst and Digital Bridge platforms, powered by AI agents, are helping simplify technology purchasing and deepen customer relationships. Q3 revenues surged 37.7% YoY to $21.6B with gross billings up 40% to $31.8B. SNX trades at a forward P/E of 11.31, below the industry average of 18.45, and holds a Zacks Rank #1 (Strong Buy) rating.

Arrow Electronics (ARW) is highlighted as a strong momentum pick with a Zacks Rank #1 (Strong Buy) rating and Momentum Style Score of B. The stock has outperformed its industry and the broader market, gaining 95.48% over the past year compared to the S&P 500's 16.99%. Recent earnings estimate revisions have been positive, with 3 upward revisions in the past two months boosting the consensus estimate from $19.56 to $21.24.

Zacks Premium offers investment research tools including the Zacks Rank stock-rating system and Style Scores to help investors identify high-performing stocks. The system has historically outperformed the S&P 500 with an average annual return of +23.86% since 1988. Arrow Electronics (ARW) is highlighted as a Strong Buy stock with strong momentum indicators and positive earnings estimate revisions.

Arrow Electronics (ARW) has demonstrated strong outperformance, gaining 119.7% year-to-date and hitting a new 52-week high of $247.25. The company has consistently beaten earnings estimates, most recently reporting EPS of $5.45 versus consensus of $4.45. With a Zacks Rank #1 (Strong Buy) rating, an A Value Score, and a PEG ratio of 0.36, the stock appears attractive for value investors despite trading at a 52-week high.

Arrow Electronics (ARW) shares rose 4.5% to $242.01 on strong volume, driven by broad-based customer demand, robust backlog, and improving book-to-bill trends. The company is expected to report quarterly earnings of $4.98 per share (+106.6% YoY) and revenues of $9.92 billion (+28.7% YoY). However, unchanged earnings estimate revisions over the past 30 days suggest caution about sustained momentum. ARW holds a Zacks Rank #1 (Strong Buy), while peer Wesco International (WCC) also gained 2.8%.

Fastly (FSLY) has significantly outperformed the Computer and Technology sector year-to-date, returning 152.2% compared to the sector average of 22.4%. The stock holds a Zacks Rank #2 (Buy) with consensus earnings estimates up 41.5% in the past quarter. Arrow Electronics (ARW) is another standout performer in the sector, up 106% year-to-date with a Zacks Rank #1 (Strong Buy).

Arrow Electronics (ARW) is presented as an attractive value investment opportunity, holding a Zacks Rank #1 (Strong Buy) rating with an 'A' grade for Value. The stock trades at a P/E ratio of 9.44, below its industry average of 13.16, and demonstrates favorable valuations across multiple metrics including PEG ratio, P/B ratio, P/S ratio, and P/CF ratio, suggesting it may be undervalued relative to its earnings outlook.

Zacks highlights three stocks with Rank #1 (Strong Buy) ratings and strong value characteristics: Cenovus Energy (CVE), an integrated energy company with an 11.6% earnings estimate increase; Signet Jewelers (SIG), a jewelry retailer with a 9.9% earnings estimate increase; and Arrow Electronics (ARW), an electronics distributor with a 10.9% earnings estimate increase. All three companies have P/E ratios below their respective industry averages and possess Value Scores of A.

Avnet (AVT) continues to capitalize on robust AI infrastructure demand, with fiscal 2026 IP&E sales reaching $4.6 billion, up from $4 billion. The company expects fiscal 2027 Q1 adjusted EPS of $2.80-$2.90, representing 241% year-over-year growth. AVT stock has surged 85.9% year-to-date and trades at a P/S multiple of 0.21X, below the industry average of 0.34X, earning a Zacks Rank #1 (Strong Buy) rating.