Back to top

Image: Bigstock

Alarm.com Holdings (ALRM) Stock Sinks As Market Gains: What You Should Know

Read MoreHide Full Article

Alarm.com Holdings (ALRM - Free Report) closed the most recent trading day at $62, moving -0.24% from the previous trading session. This move lagged the S&P 500's daily gain of 0.47%. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, added 0.74%.

Prior to today's trading, shares of the security service company had gained 20.7% over the past month. This has outpaced the Industrial Products sector's gain of 9.08% and the S&P 500's gain of 7.71% in that time.

Wall Street will be looking for positivity from ALRM as it approaches its next earnings report date. This is expected to be February 28, 2019. The company is expected to report EPS of $0.24, down 7.69% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $99.63 million, up 12.21% from the year-ago period.

Investors should also note any recent changes to analyst estimates for ALRM. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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 has moved 0.22% higher. ALRM is holding a Zacks Rank of #1 (Strong Buy) right now.

Valuation is also important, so investors should note that ALRM has a Forward P/E ratio of 45 right now. This valuation marks a premium compared to its industry's average Forward P/E of 15.

We can also see that ALRM currently has a PEG ratio of 2.64. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ALRM's industry had an average PEG ratio of 1.71 as of yesterday's close.

The Security and Safety Services industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 213, which puts it in the bottom 17% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Alarm.com Holdings, Inc. (ALRM) - free report >>

Published in