Arlo Technologies (ARLO) closed at $8.16 in the latest trading session, marking a -0.61% move from the prior day. This move lagged the S&P 500’s daily gain of 0.28%. Elsewhere, the Dow gained 0.29%, while the tech-heavy Nasdaq added 0.16%.
Prior to today’s trading, shares of the maker of smart connected devices had lost 19.59% over the past month. This has lagged the Computer and Technology sector’s loss of 10.69% and the S&P 500’s loss of 5.39% in that time.
Arlo Technologies will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$0.03, up 62.5% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $135.74 million, up 18.2% from the year-ago period.
Any recent changes to analyst estimates for Arlo Technologies should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Arlo Technologies is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Arlo Technologies currently has a Forward P/E ratio of 1642. For comparison, its industry has an average Forward P/E of 45.97, which means Arlo Technologies is trading at a premium to the group.
The Internet – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 158, which puts it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Arlo Technologies, Inc. (ARLO): Free Stock Analysis Report
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