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

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In the latest trading session, Arlo Technologies (ARLO) closed at $9.26, marking a +0.65% move from the previous day. This change outpaced the S&P 500's 0.09% gain on the day. At the same time, the Dow lost 0.16%, and the tech-heavy Nasdaq gained 0.1%.

Prior to today's trading, shares of the maker of smart connected devices had gained 0.11% over the past month. This has outpaced the Computer and Technology sector's loss of 5.27% and the S&P 500's loss of 4.02% in that time.

Investors will be hoping for strength from Arlo Technologies as it approaches its next earnings release, which is expected to be March 1, 2022. On that day, Arlo Technologies is projected to report earnings of -$0.03 per share, which would represent 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 should also note any recent changes to analyst estimates for Arlo Technologies. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. Arlo Technologies currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Arlo Technologies is currently trading at a Forward P/E ratio of 1840. This valuation marks a premium compared to its industry's average Forward P/E of 53.52.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 165, putting it in the bottom 36% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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