In a concerted effort to augment the network connectivity of all the Internet-connected devices within the premises, NETGEAR, Inc. (NTGR - Free Report) has made the latest addition to its Orbi Whole Home WiFi System. The company’s Orbi Dual Band Mesh WiFi System comprises one router and one or more satellites and offers stable WiFi for streaming and gaming coverage to a medium to large sized home spanning 3,000 square feet or higher.
The strategic move has been undertaken primarily to make the Orbi technology more accessible to a broader spectrum of audience by catering to the WiFi needs of every household.
The Orbi system comes with NETGEAR’s Armor — a multi-layered cybersecurity software — to provide seamless WiFi connection with the help of service set identifier. It also includes Smart Parental Control solution — Circle — to manage screen time. It can be easily controlled with Amazon Alexa – the virtual assistant developed by Amazon.com, Inc. (AMZN - Free Report) , and Google Assistant – an AI-powered virtual assistant developed by Alphabet Inc. (GOOGL - Free Report) , to provide voice control for recurrent features.
NETGEAR’s top line is benefiting from the rapid surge in Internet-connected devices, thereby boosting the need for robust networking solutions. An increased market demand for Smart Home and connected products such as Smart TVs, game consoles, HD streaming players and security cameras, among others, continues to drive innovation in the networking space.
In addition, the company is gaining from the healthy market traction of Orbi, cable modems and gateways coupled with its SMB switching portfolio, particularly the PoE and ProAV switches. It continues to capitalize on technology inflections, create new categories and build recurring revenues to maintain its market position and drive future growth.
Notably, NETGEAR generates the lion’s share of its revenues from the Connected Home segment that offers high-performance, dependable and easy-to-use LTE and WiFi Internet networking solutions for consumers. The latest addition to the Orbi portfolio is likely to strengthen its market position and further augment its revenues.
The company topped earnings estimates thrice in the trailing four quarters, delivering average positive surprise of 22%. The stock has returned 19% against the industry’s decline of 19.7% in the past three months.
Zacks Rank & A Key Pick
NETGEAR currently has a Zacks Rank #3 (Hold). A better-ranked stock in the broader industry is NetScout Systems, Inc. (NTCT - Free Report) sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NetScout surpassed earnings estimates thrice in the trailing four quarters, the average positive surprise being 20.6%.
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