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iRobot (IRBT) Upgrades HOME App, Boosts Smart Home Business

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Premium home robotics company, iRobot Corporation (IRBT - Free Report) boosted its Smart Home business by announcing the latest updates for iRobot HOME Application (HOME App). The company noted that the upgraded application would enhance consumers’ home-robotic usage experience. It also believes that the newly added features would improve the overall quality of its connected home services.

iRobot is aimed at becoming the best consumer technology company. In line with this, the company makes several investments for rolling out smart home products or making the existing products more user friendly. Over the last one month, iRobot’s shares yielded a return of 2.39% – outperforming the 1.85% gain provided by the Zacks categorized Industrial Automation and Robotics industry.

Inside the Headlines

IRobot’s HOME App would boost the value of Roomba vacuuming robots in the connected home market. The upgraded features include an advanced Clean Map and an Amazon Alexa voice activated controlling system.

The Clean Map would offer visual post-cleaning maps, displaying information about the robot’s overall cleaning performance, such as total cleaned up space of a floor. On the other hand, the Amazon Alexa voice controlling system would ensure smooth communication with a Roomba robot.

The HOME App application is already available in the market for both iPhone Operating System and Android users. However, the Amazon Alexa feature would be included in the Roomba vacuums in the U.S. from second-quarter 2017.

Why a Poor Zacks Rank?

In Apr 2016, iRobot divested its Defense & Security business, in a bid to become a pure play consumer technology company. However, the post spin-off profit making prospects of the company still remain ambiguous.

Notably, the Zacks Consensus Estimate for iRobot has also moved south by 9.5% to $1.53 for 2017, over the last 60 days, reflecting adverse market sentiments toward the stock. Certain macroeconomic headwinds, such as a stronger U.S. dollar or stiff industry rivalry, might hurt the top- and bottom-line performance of this Zacks Rank #4 (Sell) stock in the quarters ahead.

Stocks to Consider

Some better-ranked stocks within the industry are listed below:

ACCO Brands Corporation (ACCO - Free Report) has a positive average earnings surprise of 24.74% for the last four quarters and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Applied Industrial Technologies, Inc. (AIT - Free Report) carries a Zacks Rank #2 (Buy) and has a positive average earnings surprise of 6.18% for the trailing four quarters.

Avery Dennison Corporation (AVY - Free Report) also holds a Zacks Rank #2 and has an average earnings surprise of 6.17% for the past four quarters.

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