|Bid||0.0000 x 900|
|Ask||0.0000 x 1400|
|Day's Range||3.7100 - 4.2850|
|52 Week Range||2.6600 - 11.7500|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Earnings Date||Feb 3, 2020 - Feb 7, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||5.10|
We are still in an overall bull market and many stocks that smart money investors were piling into surged through the end of November. Among them, Facebook and Microsoft ranked among the top 3 picks and these stocks gained 54% and 51% respectively. Hedge funds' top 3 stock picks returned 41.7% this year and beat […]
Arlo Technologies, Inc. (NYSE: ARLO), the 1 network connected camera brand1, today announced that Matthew McRae, CEO, and Christine Gorjanc, CFO, will present at the Raymond James Technology Investors Conference in New York.
On the heels of its record-breaking rally, the market dipped into the red. The S&P 500, the Dow Jones and Nasdaq all slipped yesterday following the release of a report stating that a trade deal might get pushed into 2020. This comes after China denounced a resolution from the U.S. Senate supporting human rights in Hong Kong.“What we’re seeing in the market today is another reminder that tariffs reign supreme. You can have great results from two of the biggest retailers — Target and Lowe’s — but what seems to matter most of all is if headlines go south on trade,” JJ Kinahan, TD Ameritrade chief market strategist, commented.Against this backdrop, the Federal Reserve published the minutes from its October meeting, demonstrating that interest rates will likely stay put unless economic conditions deteriorate substantially.Given the current economic landscape, investors are searching for stocks poised to soar through 2020 and beyond. To get this done, we turned to the pros at Deutsche Bank, taking a closer look at three of the Wall Street giant's Buy-rated picks boasting huge upside potential. Deutsche houses some of the best-performing analysts on Wall Street, with it scoring the 8th spot on TipRanks’ Top Performing Research Firms ranking. Let’s dig in.TechnipFMC (FTI)TechnipFMC provides its customers with subsea, onshore, offshore and surface technologies used for oil and gas production. While shares have struggled in the last few months, Deutsche Bank’s Christopher Snyder just gave the company a “top pick” designation.Part of FTI’s strength lies with its ability to cut well costs for upstream providers through its unique approach to developing and installing subsea field architecture. This includes standardizing equipment, simplifying installations and employing new technologies. As a result, it saw a 40% drop in offshore breakevens compared to last cycle.“By making more projects economically viable for their customer base, FTI has successfully created secular demand tailwinds for themselves, a win-win and the ultimate goal of any service provider,” Snyder wrote in a note to clients. He added that even though margins have been weighed down by excess supply across subsea manufacturing and installation, he predicts that 2019 will represent the “bottom in subsea margins for FTI” as subsea service and integrated projects make up a larger portion of revenue in the next few years.Adding to the good news, since FTI introduced its integrated subsea model (iEPCI) in 2016 that brought all operations under one roof, iEPCI accounts for more than 50% of FTI’s inbound subsea orders. “We think the rapid adoption of digital solutions throughout the oil and gas value chain will drive increased integration across the OFS universe and no company is better positioned to take advantage of this shift than FTI,” Synder noted.All of this prompted the analyst to initiate coverage with a Buy. Along with the rating, he attached a $33 price target, indicating 68% upside potential. (To watch Snyder’s track record, click here)Similarly, the rest of the Street likes what it’s seeing. 5 Buy ratings and 1 Hold received in the last three months add up to a ‘Strong Buy’ analyst consensus. On top of this, its $31 average price target puts the upside potential at 60%. (See TechnipFMC stock analysis on TipRanks)Baker Hughes (BKR)Baker Hughes is an oil and gas technology company that offers solutions for energy and industrial customers across the world, with the majority stake of its shares having been previously held by General Electric. Based on its business segments that include long-cycle businesses (LNG), more stable and diversified end-markets, strong international exposure and a service portfolio focused on technology, Deutsche Bank sees plenty of gains in store.While acknowledging the “choppy upstream backdrop,” Christopher Snyder, who also covers BKR, argues that the current LNG FID wave and its associated after-market service agreements will lend itself to strong margin expansion.“We think the margin improvement story at BKR has been under-appreciated by the market with the company setting itself up for years up margin expansion, even under our relatively conservative near-term upstream spending outlook,” he explained.Additionally, Snyder cites its digital solutions business as providing diversification with end-markets in the broader industrial and chemical industries. This is important as it gives BKR some stability in an otherwise volatile oil and gas market. The analyst also points out that the resurgence in both the international oilfield service and equipment markets should bode well for BKR.As a result, Snyder started BKR as a Buy and set a $32 price target. This target conveys his confidence in BKR’s ability to climb 43% higher in the next twelve months. (To watch Snyder’s track record, click here)Like Snyder, other Wall Street analysts take a bullish approach when it comes to BKR. As 9 Buys were assigned in the last three months compared to no Holds or Sells, the consensus is unanimous: BKR is a Strong Buy. At an average price target of $29, the potential twelve-month gain lands at 31%. (See Baker Hughes stock analysis on TipRanks)Arlo Technologies (ARLO)No one is doubting the fact that home automation company Arlo Technologies has had a rough going. We’re talking about a 72% fall year-to-date. However, Deutsche Bank analyst Jeffrey Rand believes that the drop presents investors with a unique buying opportunity.The analyst recognizes that ARLO continues to face challenges both operationally and competitively but argues that this downside risk has already been factored into the share price. In his view, the company stands out based on its ahead-of-the-curve technology that is “supported by its market share leading position in the U.S. and the growing mix of subscription revenue should support margin expansion and a more stable revenue stream”.Part of the optimism is due to the potential sale of its European commercial operations to Verisure for $50 million. Not to mention the deal includes a guarantee that Verisure will reach a minimum of $500 million in cumulative hardware purchases over the next five years and will purchase Arlo Smart subscriptions from Arlo for its users. “With about 3 million customers, Verisure meaningfully increases Arlo's future customer base and we believe that this model could open up future possibilities for Arlo to work closer with home security providers,” Rand noted.Bearing this in mind, the analyst resumed coverage of ARLO with a bullish call and attached a $4 price target. This implies shares could surge 45% in the coming year. (To watch Rand’s track record, click here)Looking at the consensus breakdown, it’s a mixed bag when it comes to ARLO. 1 Buy, 1 Hold and 1 Sell amount to a ‘Hold’ analyst consensus. However, its $4 average price target brings the upside potential to 45%. (See Arlo Technologies stock analysis on TipRanks)
Not that long ago, electronics and accessories manufacturer Logitech (NASDAQ:LOGI) was a popular short target. As recently as early 2016, even with the LOGI stock price at a relatively modest $15 or so, over 15% of its shares outstanding were sold short. Logitech stock looked cheap on a fundamental basis, but bears bet against LOGI anyway.Source: Somphop Krittayaworagul / Shutterstock.com The short thesis made some sense. At the time, roughly half of Logitech's revenue came from computer keyboards and computer mice. Meanwhile, PC (personal computer) unit sales were declining as consumers adopted smartphones as well as tablets like Apple's (NASDAQ:AAPL) iPad.As PC unit sales fell, bears argued, so too would sales of Logitech's accessories for those computers. With roughly half of its revenue headed in the wrong direction, Logitech's earnings would drop, they argued. And even after excluding some unfavorable items, its earnings per share was below $1 in fiscal 2016. That indicated that the LOGI stock price easily could dip below $10.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat thesis didn't play out at all. The company's revenues from devices for PCs actually kept increasing. Its margins improved. Categories like Gaming and Video Collaboration helped drive its revenue growth. Not only did its profits fail to decline, but its earnings per share more than doubled between fiscal 2016 and fiscal 2019. Logitech stock at one point had tripled, as shorts scrambled to cover. Barely 1% of its shares outstanding now are sold short. * 10 Cheap Stocks to Buy Under $10 Since the beginning of 2018, however, the LOGI stock price has stalled out. One key reason for the weakness is that aspects of the old short case seem pertinent again. Logitech's growth still looks solid, but for LOGI stock to resume its upward climb, the company needs to launch new products. Logitech StockOne potential source of concern is that Logitech remains heavily reliant on PCs. In FY19, mice, keyboards, and PC webcams still drove a combined 43% of its sales.The combined revenue from those categories increased 6% in FY19. But they've grown less than 1% in the first half of fiscal 2020. Meanwhile, consumer demand for PCs remains "very weak", as research firm Gartner put it in July. The Microsoft (NASDAQ:MSFT) Windows 10 refreshment cycle has boosted demand from businesses, but that tailwind, too, may fade.To be fair, currency fluctuations may have negatively impacted this year's revenue: for Logitech as a whole, revenue growth excluding currency fluctuations in the first half was over two percentage points higher than the reported total. And Logitech CEO Bracken Darrell has repeatedly noted that the driver of Logitech's PC accessories demand isn't unit sales, but rather unit usage.After all, part of the weakness of PC sales is due to the fact that PCs are lasting longer, while new desktops no longer offer the same improvements they did a decade ago. That's a benefit for Logitech, not a problem. Consumers who use computers longer and more often will buy Logitech's accessories to replace old equipment and/or improve their experience.Still, the growth of the company's revenue from products for PCs is decelerating meaningfully even excluding currency fluctuations. And if 43% of the company's revenue is growing minimally or not at all, that's a significant negative factor for LOGI stock. What Will boot LOGI Stock?With Logitech stock trading at a still-reasonable valuation, flattish revenue from the PC categories isn't a death knell. It's not even a good reason to consider shorting LOGI stock at this point.But now the rest of the company's business is showing some weakness as well. Most notably, Logitech's Gaming products had been a huge source of growth: their sales more than tripled between fiscal 2015 and 2019. In 2019, however, their revenue is flat.That's partly because of a difficult comparison. Last year's release of the free Fortnite game by Epic Games shook up the video game industry -- and led to a surge in sales of gaming headsets like those manufactured by Logitech's Astro Gaming unit. The top line of Astro rival Turtle Beach (NASDAQ:HEAR) should drop about 17% this year, even with some help from an acquisition.Going forward, the growth of LOGI's Gaming unit is likely to decelerate from the torrid rates posted in years past. And that leaves the company reliant on a category like Video Collaboration, which is roughly 10% of its trailing 12-month sales, for growth.So far, Logitech has managed to find ways to drive growth despite flattish end markets. But the obvious worry is that it won't be able to continue to do so forever. Unless Gaming resumes growing meaningfully again in FY21, going forward its sales are not going to increase at the same, high-single-digit percentage rate seen in the past few years. And that might be a problem for LOGI stock. Margins and the LOGI Stock PriceLogitech stock at this point seems like a revenue story. Its gross margins have improved, but they already are above the company's previous target of 35%-37%. As CFO Nate Olmstead noted on the company's Q2 earnings conference call, Logitech plans to reinvest additional profits that come from higher gross margins in marketing and research and development. As a result, LOGI expects its operating margins, excluding currency fluctuations, to be roughly flat in FY20.A key reason why the LOGI stock price tripled is that Logitech has been a company that has been running on all cylinders. Its CEO has done a fantastic job over that stretch. But the counterintuitive problem with a company operating at peak efficiency is that there's little room for improvement going forward. Logitech provided operating margin guidance this year of about 13%. I'm skeptical about the company's ability to surpass that guidance.And so what can increase the company's earnings per share? Logitech does have a cash hoard of over $500 million and no debt, so it could make a bigger acquisition after years of buying smaller firms like Astro and software play Streamlabs. But M&A aside, it does seem like its margins have peaked and its revenue growth is at risk of decelerating.Admittedly, the LOGI stock price incorporates that to some extent. Excluding the company's cash, LOGI stock trades for about 18x FY20 consensus EPS estimates. But if annual earnings growth slows to 5% or so, that multiple is reasonable. And if Logitech stumbles at all, or its PC revenues finally start declining, the stock can get cheaper in a hurry. Logitech Needs Something That Will Excite InvestorsNone of this means that LOGI stock is worth shorting. Again, its growth has been impressive, and it's usually a bad idea to bet against well-run companies.But Logitech stock has traded sideways for some 20 months now. Resistance has held of late at the current LOGI stock price. To drive a breakout, Logitech simply needs to get investors excited -- and it's tough to see how the company can do that.A resurgence of its Gaming unit could help, though I'd rather own Turtle Beach stock if that scenario unfolds. (I personally have taken a bullish position in Turtle Beach using sold puts.) LOGI's Video Collaboration unit can grow through a partnership with Zoom Video Communications (NASDAQ:ZM), though with ZM stock down 37% from its highs it, too, might be a more attractive and more direct play than LOGI stock.Regardless, those two categories only drove about one-third of Logitech's sales in the first half of the fiscal year. The other two-thirds of the business -- PC and tablet accessories, speakers, and audio equipment -- pretty much "is what it is" at this point. And what it is is a low-growth, if attractive, portfolio.That might be enough to cause LOGI stock to rise. But it's probably not enough to enable LOGI stock to outperform. To get the P/E multiple back above 20 and the stock back above $50, Logitech needs to show it can return to at least double-digit-percentage profit growth. The problem at the moment is that's it difficult to see how the company can do that.As of this writing, Vince Martin has a bullish position in HEAR stock via options. He has no positions in any other securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Stocks to Buy Under $10 * These 10 Stocks to Buy Make the Perfect 'Retirement' Portfolio * 5 Streaming Stocks to Buy for Huge Upside Over the Next Decade The post Logitech Stock Needs to Find a New Catalyst appeared first on InvestorPlace.
The big shareholder groups in Arlo Technologies, Inc. (NYSE:ARLO) have power over the company. Institutions will often...
Arlo Technologies (ARLO) delivered earnings and revenue surprises of 11.11% and 4.73%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?
Arlo Technologies, Inc. (ARLO), the #1 internet connected camera brand1 and Verisure Sàrl, the leading provider of monitored security solutions in Europe, announced today that they have entered into definitive agreements to create a strategic partnership that leverages both companies’ capabilities to create incremental scale to address ever-growing demand for residential and commercial security. The companies will combine Arlo’s innovative connected cameras and cloud services platform with Verisure’s professionally monitored security solutions to provide a new level of smart security for European customers.
Arlo Technologies (ARLO) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Arlo Technologies, Inc. , the #1 internet connected camera brand1, today announced that it will hold a conference call with investors and analysts on Thursday, November 7, 2019 at 5:00 p.m.
SAN JOSE, Calif., Oct. 22, 2019 /PRNewswire/ -- Arlo Technologies, Inc. (ARLO), the #1 internet connected camera brand1, announced today that support for HomeKit, Apple's smart home platform, is now available on the brand's flagship Arlo Ultra Security Camera Systems that air paired with the Arlo SmartHub (VMB5000). While Arlo users can already control their Ultra cameras via the Arlo app, HomeKit compatibility will provide added convenience for iPhone and iPad users. Now, iOS users will be able to access certain functions of their Ultra cameras in the HomeKit ecosystem using the Apple Home app and Siri voice commands.
Designed to capture what traditional video doorbells can't, the new smart entry solution boasts an industry-leading vertical field-of-view, allowing users to get a bigger, more precise picture of their front porch. The Video Doorbell captures footage in a square aspect ratio to allow users to fully view packages on the ground, or visitors from head and to toe. Unlike conventional doorbell cameras, the Arlo Video Doorbell delivers direct-to-mobile video calls and personalized alerts2 when packages, people, vehicles, or animals are detected, allowing for users to quickly reply or take action.
There's no doubt that money can be made by owning shares of unprofitable businesses. For example, biotech and mining...
Designed to provide home and small business owners with a high-performance, simple, wire-free security solution, Pro 3 features 2K resolution with high dynamic range (HDR), an integrated spotlight with color night vision and a super-wide 160-degree field of view. Engineered to work indoors or outdoors, Pro 3 offers advanced image quality for DIY security that anyone can easily install in minutes and monitor from anywhere using the Arlo app. Completing the security solution, Pro 3 comes with a three-month trial of Arlo Smart, Arlo's AI and computer vision-based service that delivers advanced detection of people, vehicles, animals and packages.