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Alarm Expands Home Automation Portfolio With New Products

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In a bid to bolster its Wellness product line and Home Automation segment, Alarm.com Holdings, Inc. (ALRM - Free Report) recently unveiled Wellcam and Wellness Insights. These products are specifically designed to improve the well-being and safety of loved ones inside the confines of a house.

Wellcam is aimed at enabling independent living. It boasts of a 180-degree field of view and 1080p resolution camera. After connecting the camera to Wi-Fi, the users will get a clear view of the activities of their children or aging parents. Moreover, it also features audio calls and live videos, which enables the user to visually connect with their family.

Meanwhile, Wellness Insights primarily focuses on the healthy living of an individual. It utilizes sensors and predictive analytics to check on the changing behavior and health-patterns of the family members, and notify them in case of any aggravation.

Consequently, we believe Alarm is poised to benefit from these new products, which are devised to assure the users about the safety of their loved ones while they are away.

Coming to price performance, shares of Alarm have increased 39.7% over a period of one year, against the industry’s decline of 38.6%.

Product Details & Market Growth Prospects

The Wellcam also comes equipped with a call-out button, allowing the user to call for help without using a smartphone. It can also be utilized to record videos and set alerts when the family members are in dangerous situations.

The Wellness Insight is designed to record the activities in an individual, which includes the number of times they visit the bathroom or move around the home. By doing so they understand the activity pattern of the individual and alerts the user when it records a change in the pattern.

Moreover, it also reminds the user about taking medicines on time or keeping doors open at unusual hours, providing increased visibility and awareness.

Per reports, the security solution market is expected to reach $372.9 billion, witnessing a compounded annual growth rate (CAGR) of 10.2% between 2017 and 2022. Per Accenture, artificial intelligence (AI) in healthcare is expected to reach $6.6 billion in a few years, with a CAGR of 40%.

Consequently, we believe the growing demand in the security solution market and AI in healthcare is expected to benefit Alarm’s new offerings, which provides robust security solution and AI-based insights into the users’ daily activities.

Alarm.com Holdings, Inc. Price and Consensus

Alarm.com Holdings, Inc. Price and Consensus | Alarm.com Holdings, Inc. Quote

Bottom Line

Alarm offers cloud-based security and home-automation products. By depending on cloud technology, the company significantly reduces operating costs and enables users to manage their home from anywhere. For instance, users can remotely control almost anything in their home, including security systems, thermostats, light switches and even garage doors through a mobile application.

Per reports, the home automation segment is expected to reach $116.26 billion, witnessing a CAGR of 6.8% between 2017 and 2026. Notably, Alarm is well poised to cement its postion as a dominant force in the expanding home-automation industry.

The company also has a robust product portfolio. Further, the company’s continued innovation will enable it to provide better services to customers and in turn improve profitability.

Zacks Rank & Stocks to Consider

Currently, Alarm carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader computer and technology sector include Qualcomm (QCOM - Free Report) , Alteryx and Veeva Systems (VEEV - Free Report) . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.

Expected long-term earnings growth rate for Qualcomm, Alteryx and Veeva is 10.9%, 8% and 19.5%, respectively.

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