ARLO - Arlo Technologies, Inc.

NYSE - NYSE Delayed Price. Currency in USD
3.6900
+0.3000 (+8.85%)
At close: 4:02PM EST
Stock chart is not supported by your current browser
Previous Close3.3900
Open3.3700
Bid3.6800 x 1300
Ask3.8300 x 1000
Day's Range3.3700 - 3.7798
52 Week Range2.6600 - 5.1300
Volume906,990
Avg. Volume803,604
Market Cap279.364M
Beta (5Y Monthly)N/A
PE Ratio (TTM)N/A
EPS (TTM)-1.9360
Earnings DateFeb 23, 2020
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est4.50
  • 7 Micro-Cap Stocks That Could Double
    InvestorPlace

    7 Micro-Cap Stocks That Could Double

    Companies with micro capitalization are those that have valuations under $300 million. At that size, the volatility can be higher than the average stock. If timed correctly, this suggests that the stock may offer traders big gains in short periods of time. Conversely, an investor may get caught up in a stock that surges, only to find trading volume shrink considerably in the weeks that follow.Whichever way the stock moves, investors generally face higher risks in buying micro-cap stocks. Why consider such investments? The easy answer is that these companies are not usually covered by Wall Street analysts and get no attention from big investors. The mispricing between the stock's fair value and its stock price is usually very wide. That would mean that anyone who spends the time and effort to search for under-priced micro-cap investing ideas will get rewarded a few years down the line. Of course, that assumes the analysis is right and the market is wrong about a stock.How might investors find under-covered, hidden micro-cap stocks today? Stock Rover has a screener for micro-cap stocks that will filter for those trading below a certain price-to-earnings ratio, value score, future versus past return on invested capital, and sentiment.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Exciting Stocks to Buy for Aggressive Investors But for some stocks slightly above the $300 million market cap, investors need to allow for exceptions. Such picks may be companies that had a bad few years and are regaining their footing. Using this search method, we come up with seven micro-cap stocks for value investors. Applied Optoelectronics (AAOI)Source: Shutterstock Applied Optoelectronics (NASDAQ:AAOI) enjoyed a rally to above $15 in January 2020 only to give all of that up. In its Q3 report, the company reported revenue falling 18% year over year (Y/Y) to $46.1 million.Gross margin rose to 28.8%, up from 27.2% last year. Its net loss of $8.8 million (GAAP) translates to an earnings per share (EPS) of negative 44 cents. Losing more money compared to last year (net loss of $3.7 million) is not a good thing. Issuing a downbeat Q4 outlook is also a setback. So what is there to like about AAOI stock?40G and 100G sales are potential positive catalysts for the company's revenue growth. On its conference call, management said that "we would expect to see a continuation of business for 40G and 100G until the 400G is there."As long as 100G and 40G sales continue, the company has some time to build up interest in its 400G solution. The delay in 400G disappointed investors in the last year, keeping the stock at its current valuations. And if customers resume their orders, buying interest in AAOI stock will head higher. Eastman Kodak (KODK)Source: Rizhka Nazar / Shutterstock.com Older investors will know that Eastman Kodak (NASDAQ:KODK) was a giant before cameras and film went digital. But the firm continues to pivot its business elsewhere. On Sept. 1, 2019, the company formed a strategic partnership with Lucky HuaGuang Graphics. It will monetize its plates technology with an intellectual property license agreement.For 2020, Kodak is determined to generate cash flow. And as it concentrates on profitable businesses including Kodak Sonora and Kodak Prosper, losses will shrink. In the third quarter, the company lost $4 million (adjusted). Revenue of $315 million is only $14 million below the results from the year before.On its balance sheet, Kodak had $225 million in cash and cash equivalents. This is above the ~$150 million market cap. If the company manages its inventory by keeping it low, ensures its working capital drives revenues in its most profitable units, and is EBITDA positive, the stock may rebound. Last quarter, Kodak reported operational EBITDA of $7 million for the nine-month period. * 7 U.S. Stocks to Buy on Coronavirus Weakness Monitoring Kodak's progress is easy. As free cash flow grows, the company's turnaround plan will win investor confidence. On the conference call, management said, "We are going to continue to innovate in the areas of our strength, Advanced Materials and focus on core products. That's why we're really clear where the company is going." Willis Lease Finance (WLFC)Source: Alex JW Robinson / Shutterstock.comWillis Lease Finance (NASDAQ:WLFC) is holding the $60 level. It is not getting much attention from investors despite its surging revenue and quarterly profits.In the third quarter, Willis Lease Finance reported revenue growth of 48.7% Y/Y to $120.37 million. Strong leasing revenues and gains associated with its portfolio led to a strong EPS of $3.81. Lease rent and maintained reserve revenue brought in $88.3 million. To simplify its business and improve its balance sheet, the firm closed another ConstantAccess program for one of its European customers. The deal is the sign of the changing times in the airline engine business. Instead of airlines buying excess spare engines, they now own them as needed. They then borrow the rest.Markets are assuming the gains on the sale of $4.6 million (for four engines) is a one-time event. And the $24.4 million in revenue from the spare parts and equipment included the sale of two engines. As a result, the sharp increase in earnings is only temporary.Per simplywall.st, the company has high debt levels, with a debt to equity ratio of 318.6%. EBIT (earnings before interest and taxes) only covers interest payments on its debt by 2.7 times. Still, the company is working to reduce its debt.If WLFC stock had a one-time spike to over $70 in September 2019, it could happen again. Asset sales and improving revenue growth could lead to a doubling in its stock price. In an EBITDA multiple model on finbox.io, the stock has a fair value of over $100 a share. Catasys, Inc. (CATS)Source: ShutterstockCatasys (NASDAQ:CATS) trended higher since November 2019 ever since it reported a 100.9% year-over-year increase in revenue. Yet instead of trading at a $1 billion market cap, it is a micro-cap stock. Worries over the talk for Medicare for All may have limited the stock's upside potential recently.Catasys reported revenue of $8.84 million in the third quarter. It lost 52 cents in EPS in that period. Its total outreach of eligible members grew to 140,000, up 26% sequentially. The company forecast 2019 GAAP revenue of $35 million and 2020 GAAP revenue of $90 million. If nearly tripling in revenue correlates to a stock price increase, then CATS stock may at least double.On the press release, the CEO noted the importance of technology in delivering its mandate. CEO Terren Peizer said that "with the continued technology and infrastructure investment, we are poised to deliver on our goal of helping and saving as many lives as possible."The 157% revenue growth is driven by the company's expectation of accelerating enrollment growth in 2020. Expansion of programs with current health plan partners will also increase the company's revenue potential for many years. As Catasys announces more new contracts and program launches, the stock should respond by moving higher. * 7 Low-Volatility Stocks to Buy In Jittery Times This stock is not without risk. Catasys is not projected to post positive earnings in the next three years. In fact, the company did not have a profit in the last two fiscal years. Yet if its profits come sooner, the stock should double. Immersion Corporation (IMMR)Source: Shutterstock Immersion Corporation (NASDAQ:IMMR) shares did not move anywhere since May 2019. Shares peaked at $10.74 in the last year. For the stock to double, it must trade above its 52-week high.In the third quarter, the company reported revenue growth of 24.2% Y/Y to $10.62 million. It lost just 4 cents a share, but on a non-GAAP basis, the company broke even. At an inflection point, renewed demand for touch feedback may send revenue higher and drive a doubling in IMMR's stock price. The company earned royalty revenue from the shipment of 6.4 million units. Licensing fees of $4.1 million is a slight decline from last year's $4.3 million.Looking ahead, renewed demand from mobility, automotive, and gaming (to a lesser degree to revenue) may lift Immersion's business. Immersion will also have fewer legal activities, which will lower litigation expenses. During the third quarter, it improved the management of its patent portfolio. Prosecution and maintenance fees fell 14% sequentially. As it turns its focus on the most valuable IP while cutting unnecessary operating expenses and R&D costs, profits may grow.Immersion's pivot from IP licensing revenue to patent and licensing is underway. As it invests in the underlying haptics technologies, customers will have more interest in what Immersion has to offer. Radcom (RDCM)Source: Shutterstock Radcom (NASDAQ:RDCM) posted profits in the fiscal 2018 year but then swung to a loss since 2019. Although revenue is growing, gross profit is on the decline. In the third quarter, it reported revenue growth from $8.5 million to $9.4 million. Gross profit fell from 80.5% to 65%.Radcom spent more on research and development (R&D) while other expenses rose, too. The investment back into its business will eventually offset the near-term revenue growth declines in the current quarter. For now, Radcom's Rakuten project with AT&T (NYSE:T) is bringing in steady revenue. * 7 Smart Blue-Chip Stocks to Buy Now In 2020, Radcom started the year with a decent revenue backlog. Growth may pick up as it wins more orders. As long as its pipeline remains healthy and performance matches last year's levels, the stock may potentially double. In a 5-year discounted cash flow (DCF) revenue exit model, Radcom needs revenue accelerating to over 20% annually. At a 9% discount rate, Radcom stock has a fair value of at least $15 (per finbox.io). Arlo Technologies (ARLO)Source: Anucha Cheechang / Shutterstock.com Arlo Technologies (NYSE:ARLO), which makes smart security cameras for home and business, is out of favor. Arlo stock peaked at $5 in January 2020 only to fall for seemingly no reason. And since this market is far from saturated, Arlo stock could double in the next year if more customers sign up for its software as a service subscription.In the third quarter Arlo reported revenue of $106.1 million. It shipped an impressive 14.1 million units and recorded 211,000 in paid subscribers. Demand for video security remains robust as people seek a peace of mind. Arlo's products give that not only through video cameras but with system control. Customers may turn lights on and off and have 2-way audio on the live view cameras.Arlo won many industry awards from CNET, Digital Trends, and CES 2020. That kind of free publicity will help the company re-accelerate its revenue. To get there, Arlo needs to sustain the paid subscription growth of 69% Y/Y. For example, if customers find the standalone service is not enough, signing up for a subscription may solve that problem.Arlo has the capability to grow its revenue by 8% compounded annually in a 5-year DCF EBITDA exit model. In that scenario, the stock is worth double. Readers may head over to finbox.io to change their growth assumptions and to come up with a revised price target.As of this writing, the author did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Exciting Stocks to Buy for Aggressive Investors * 20 Stocks to Buy From the Law of Accelerating Returns * 7 U.S. Stocks to Buy on Coronavirus Weakness The post 7 Micro-Cap Stocks That Could Double appeared first on InvestorPlace.

  • Business Wire

    Arlo Technologies Schedules Fourth Quarter and Full Year 2019 Results Conference Call

    Arlo Technologies, Inc. (NYSE: ARLO) today announced that it will hold a conference call with investors and analysts on Monday, February 24, 2020 at 5:00 p.m. ET (2:00 p.m. PT) to discuss the Company’s fourth quarter and full year 2019 results. The news release announcing the fourth quarter and full year 2019 results will be disseminated on February 24, 2020 after the market closes.

  • Arlo Technologies (ARLO) May Report Negative Earnings: Know the Trend Ahead of Q4 Release
    Zacks

    Arlo Technologies (ARLO) May Report Negative Earnings: Know the Trend Ahead of Q4 Release

    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.

  • How Many Arlo Technologies, Inc. (NYSE:ARLO) Shares Did Insiders Buy, In The Last Year?
    Simply Wall St.

    How Many Arlo Technologies, Inc. (NYSE:ARLO) Shares Did Insiders Buy, In The Last Year?

    We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The...

  • Arlo Puts Consumer Privacy Front And Center With Privacy Pledge
    CNW Group

    Arlo Puts Consumer Privacy Front And Center With Privacy Pledge

    Arlo's Privacy Pledge can be viewed now at Arlo.com/PrivacyPledge. "Recent news reports have called some companies into question surrounding their real-world behavior versus their stated privacy policy," said Matt McRae , CEO.

  • Arlo Launches Arlo SmartCloud™ SaaS Solution To Deliver Scaleable Security Cloud Services For Businesses
    PR Newswire

    Arlo Launches Arlo SmartCloud™ SaaS Solution To Deliver Scaleable Security Cloud Services For Businesses

    Arlo Technologies, Inc. (NYSE: ARLO), the 1 internet connected camera brand1, today announced Arlo SmartCloud™, a SaaS version of its Arlo Smart service platform that is currently deployed as part of Arlo's award-winning security camera solutions. Arlo SmartCloud is a fully managed robust global platform of innovative capabilities built for security, scalability and reliability that can be easily deployed as part of advanced subscription services for hardware companies, automotive companies, service providers, insurance companies, home builders, smart communities, smart cities, traditional security companies, and other related verticals. Arlo SmartCloud™ is professionally managed by industry experts, easy to use, and boasts flexibility for end-to-end live streaming, storage, and computer vision.

  • Arlo Introduces First-Ever Wire-Free Floodlight Camera For Even Bolder Illumination And Protection
    PR Newswire

    Arlo Introduces First-Ever Wire-Free Floodlight Camera For Even Bolder Illumination And Protection

    Arlo Technologies, Inc. (NYSE: ARLO), the 1 internet connected camera brand1, today announced the all-new Arlo Pro 3 Floodlight Camera. An extension of Arlo's smart home security ecosystem, and recently selected as a CES 2020 Innovation Award Honoree, Arlo's integrated floodlight camera is the first wire-free variant on the market. The versatile floodlight camera brings powerful LEDs, an integrated 2K HDR camera, 160-degree field of view, two-way audio, custom lighting configurations and a built-in siren to any home or small business. It also lends itself to a number of use cases through a robust suite of smart features with the support of Arlo's AI subscription-based service, Arlo Smart. Boasting a sleek, fully integrated design, the floodlight camera offers a beautiful exterior security solution to please most discerning homeowners. The Arlo Wire-Free Floodlight Camera will be available in Spring 2020 at a MSRP of $249.99.

  • Arlo And Verisure Announce The Closure Of Verisure's Acquisition Of Arlo Europe's Commercial Operations.
    PR Newswire

    Arlo And Verisure Announce The Closure Of Verisure's Acquisition Of Arlo Europe's Commercial Operations.

    Arlo Technologies, Inc. (NYSE: ARLO), the 1 internet connected camera brand1, and Verisure Sàrl, the leading provider of monitored security solutions in Europe, announced today that they have successfully closed the previously announced definitive agreements to create a strategic partnership to create the first European multi-channel go-to-market strategy for consumer security and surveillance services by adding Arlo's retail and e-commerce channels to Verisure's existing direct sales channels. This transaction involves the acquisition by Verisure of Arlo's European commercial operations, which will enable Verisure to accelerate adoption of security and surveillance services across Europe, as well as bolster Arlo's position as the industry leader in smart home security solutions. It also includes a supply partnership for Arlo cameras with intelligent cloud services.

  • Is Arlo Technologies, Inc. (NYSE:ARLO) A Good Stock To Buy?
    Insider Monkey

    Is Arlo Technologies, Inc. (NYSE:ARLO) A Good Stock To Buy?

    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 […]

  • These 3 Buy-Rated Stocks Can Skyrocket Over 40%, Says Deutsche Bank
    TipRanks

    These 3 Buy-Rated Stocks Can Skyrocket Over 40%, Says Deutsche Bank

    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)

  • Logitech Stock Needs to Find a New Catalyst
    InvestorPlace

    Logitech Stock Needs to Find a New Catalyst

    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.

  • How Much Of Arlo Technologies, Inc. (NYSE:ARLO) Do Institutions Own?
    Simply Wall St.

    How Much Of Arlo Technologies, Inc. (NYSE:ARLO) Do Institutions Own?

    The big shareholder groups in Arlo Technologies, Inc. (NYSE:ARLO) have power over the company. Institutions will often...

  • Arlo Technologies (ARLO) Reports Q3 Loss, Tops Revenue Estimates
    Zacks

    Arlo Technologies (ARLO) Reports Q3 Loss, Tops Revenue Estimates

    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 Options Trader Bets on Major Post-Earnings Pop
    Schaeffer's Investment Research

    Arlo Technologies Options Trader Bets on Major Post-Earnings Pop

    ARLO calls are crossing at 45 times the average intraday pace today

  • Earnings Preview: Arlo Technologies (ARLO) Q3 Earnings Expected to Decline
    Zacks

    Earnings Preview: Arlo Technologies (ARLO) Q3 Earnings Expected to Decline

    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 Announces Apple® HomeKit™ Compatibility For Arlo Ultra
    PR Newswire

    Arlo Announces Apple® HomeKit™ Compatibility For Arlo Ultra

    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.