This story originally appeared on Zacks
Arlo Technologies (ARLO) closed at $9.57 in the latest trading session, marking a -1.75% move from the prior day. This change lagged the S&P 500’s 0.14% loss on the day. Meanwhile, the Dow lost 0.45%, and the Nasdaq, a tech-heavy index, lost 0.01%.
Prior to today’s trading, shares of the maker of smart connected devices had gained 7.86% over the past month. This has outpaced the Computer and Technology sector’s loss of 5.82% and the S&P 500’s loss of 0.13% in that time.
Investors will be hoping for strength from Arlo Technologies as it approaches its next earnings release. In that report, analysts expect Arlo Technologies to post earnings of -$0.03 per share. This would mark year-over-year growth of 62.5%. Our most recent consensus estimate is calling for quarterly revenue of $135.74 million, up 18.2% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Arlo Technologies. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Arlo Technologies is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, Arlo Technologies is holding a Forward P/E ratio of 1948. This valuation marks a premium compared to its industry’s average Forward P/E of 56.59.
The Internet – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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