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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 - Free Report) closed at $8.56, marking a +0.71% move from the previous day. This change outpaced the S&P 500's 0.43% gain on the day. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq gained 0.2%.

Heading into today, shares of the maker of smart connected devices had lost 17.56% over the past month, lagging the Computer and Technology sector's gain of 3.3% and the S&P 500's gain of 3.69% in that time.

Wall Street will be looking for positivity from Arlo Technologies as it approaches its next earnings report date. On that day, Arlo Technologies is projected to report earnings of -$0.03 per share, which would represent no growth from the year-ago period. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $115.15 million, up 39.47% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.21 per share and revenue of $504.32 million, which would represent changes of -90.91% and +15.9%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Arlo Technologies. These revisions help to show the ever-changing nature of near-term business trends. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Arlo Technologies is currently sporting a Zacks Rank of #3 (Hold).

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 181, which puts it in the bottom 29% 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.

To follow ARLO in the coming trading sessions, be sure to utilize Zacks.com.


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