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Is Arlo Technologies (ARLO) Outperforming Other Computer and Technology Stocks This Year?

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The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Arlo Technologies (ARLO - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.

Arlo Technologies is one of 640 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #9 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Arlo Technologies is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for ARLO's full-year earnings has moved 33% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, ARLO has returned 164.4% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 37.2% on average. As we can see, Arlo Technologies is performing better than its sector in the calendar year.

Another stock in the Computer and Technology sector, Unity Software Inc. (U - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 43.6%.

For Unity Software Inc. the consensus EPS estimate for the current year has increased 29% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Arlo Technologies belongs to the Internet - Software industry, a group that includes 146 individual companies and currently sits at #102 in the Zacks Industry Rank. This group has gained an average of 46% so far this year, so ARLO is performing better in this area. Unity Software Inc. is also part of the same industry.

Investors with an interest in Computer and Technology stocks should continue to track Arlo Technologies and Unity Software Inc. These stocks will be looking to continue their solid performance.


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