Analysts Flag Array and Ingram Micro as Services Sector Gains 21.8%

1 articles · Updated · Yahoo Finance · Aug 18

Array and Ingram Micro were singled out as services stocks to avoid even as the broader business services industry outperformed, with analysts citing weak operating trends and cyclical exposure to corporate IT spending.
Array's sales have fallen 44.7% annually over the past five years, while its free cash flow margin deteriorated by 162.1 percentage points, raising the risk that shrinking cash reserves could force dilutive fundraising.
Ingram Micro's sales were flat over five years, EPS grew just 3.4% annually over four years, and its free cash flow margin averaged 0%, limiting capacity to invest or return more cash to shareholders.
The caution comes despite a 21.8% six-month gain for the business services industry—8.6 percentage points ahead of the S&P 500—highlighting how sector strength can mask company-specific weakness.