April 19, 2024


It's the Technology

Arlo Technologies (ARLO) Outpaces Stock Market Gains: What You Should Know

Arlo Technologies (ARLO) closed at $6.86 in the latest trading session, marking a +1.03% move from the prior day. This change outpaced the S&P 500’s 0.2% gain on the day.

Prior to today’s trading, shares of the maker of smart connected devices had gained 17.47% over the past month. This has outpaced the Computer and Technology sector’s gain of 5.84% and the S&P 500’s gain of 1.06% in that time.

Wall Street will be looking for positivity from ARLO as it approaches its next earnings report date. On that day, ARLO is projected to report earnings of -$0.15 per share, which would represent year-over-year growth of 51.61%. Our most recent consensus estimate is calling for quarterly revenue of $86.59 million, up 29.95% from the year-ago period.

ARLO’s full-year Zacks Consensus Estimates are calling for earnings of -$0.23 per share and revenue of $414.57 million. These results would represent year-over-year changes of +71.95% and +16.08%, respectively.

It is also important to note the recent changes to analyst estimates for ARLO. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ARLO is currently a Zacks Rank #3 (Hold).

The Internet – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 199, putting it in the bottom 22% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow ARLO in the coming trading sessions, be sure to utilize Zacks.com.

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