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

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Arlo Technologies (ARLO - Free Report) closed the most recent trading day at $6.50, moving +1.4% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.42%.

Heading into today, shares of the maker of smart connected devices had lost 13.91% over the past month, lagging the Computer and Technology sector's gain of 5.45% and the S&P 500's gain of 6.32% in that time.

Wall Street will be looking for positivity from ARLO as it approaches its next earnings report date. The company is expected to report EPS of -$0.21, up 38.24% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $77.28 million, up 18.07% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.54 per share and revenue of $404.14 million, which would represent changes of +34.15% and +13.16%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for ARLO. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 is currently sporting a Zacks Rank of #2 (Buy).

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 207, putting it in the bottom 19% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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