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Arlo Technologies (ARLO) Stock Moves -0.74%: What You Should Know

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In the latest trading session, Arlo Technologies (ARLO - Free Report) closed at $8.10, marking a -0.74% move from the previous day. This move was narrower than the S&P 500's daily loss of 1.22%. Meanwhile, the Dow lost 0.19%, and the Nasdaq, a tech-heavy index, lost 0.53%.

Heading into today, shares of the maker of smart connected devices had lost 21.39% over the past month, lagging the Computer and Technology sector's loss of 11.78% and the S&P 500's loss of 6.58% in that time.

Arlo Technologies will be looking to display strength as it nears its next earnings release. In that report, analysts expect Arlo Technologies to post earnings of -$0.03 per share. This would mark year-over-year growth of 62.5%. Meanwhile, our latest consensus estimate is calling for revenue of $135.74 million, up 18.2% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for Arlo Technologies. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Arlo Technologies is currently a Zacks Rank #3 (Hold).

Digging into valuation, Arlo Technologies currently has a Forward P/E ratio of 1632. For comparison, its industry has an average Forward P/E of 47.22, which means Arlo Technologies is trading at a premium to the group.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 165, putting it in the bottom 36% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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