The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Arlo Technologies (ARLO) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.Arlo Technologies is one of 601 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #1 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring t ...

24/7 Wall St. Quick Read Google’s stock gained 60% year-to-date versus ADT’s 21%, suggesting markets favor AI providers over monitoring operators. ADT generates $1.10B from recurring monitoring with 25.7% operating margins. Arlo’s $510M revenue produces only 0.84% profit margins. ADT’s 24.7% earnings growth outpaces 4.4% revenue growth, indicating AI improves profitability more than expansion. If you’re thinking about retiring or know someone who is, there are three quick questions causing many Am ...

Summary of Arlo Technologies Conference Call Company Overview - **Company**: Arlo Technologies - **Industry**: Connected devices, specifically in the DIY security market - **Background**: Originally a product line within NETGEAR, spun out as an independent company in 2018 [4][7] Key Points and Arguments Market Opportunity and Transformation - Arlo started as a hardware product family with a focus on DIY security solutions, transitioning to a services-first model [7][8] - The company has over 5 million paid subscribers globally, with annual recurring revenue (ARR) exceeding $320 million [8][68] - 60% of Arlo's revenues now come from paid accounts, showcasing a shift from hardware to subscription services [8][68] Financial Performance - Gross margins have improved significantly, with blended gross margin rising from negative 20% to over 40% [13][14] - Operating income has turned positive, and the company is now GAAP EPS positive [14] - The average revenue per user (ARPU) is currently $15.20, with potential for significant pricing power compared to traditional security services that average $50-$70 per month [68][69] Product Launch and Consumer Demand - Recently launched the largest product refresh in company history with 109 SKUs, shipping 800,000 units in 6-8 weeks [26][28] - The product refresh included improvements in specifications and a reduction in cost of goods sold (COGS) by 20%-30% [26] - Consumer behavior shows resilience, with a churn rate of only 1%, the lowest in three to four years [34] Competitive Landscape - Major competitors include Amazon and smaller entities, with Arlo positioned as a trusted partner due to its focus on data privacy and security [38][39] - Anticipation of potential consolidation in the market due to government actions against certain brands, which could provide growth opportunities for Arlo [40][42] Partnership Strategy - Partnerships have become a significant revenue stream, with 50% of revenue now coming from B2B partnerships and direct sales [55] - Notable partnerships include Verisure in Europe and ADT in the U.S., with expectations to grow subscriber numbers significantly through these channels [56][57] - The company is exploring additional strategic partnerships to further enhance growth [58] Future Growth and Sustainability - Long-term goal to reach $700 million in ARR, with plans for continued growth in services and potential new pricing strategies [68][69] - The company is looking into adjacent markets such as small business security, which represent significant untapped opportunities [78] Additional Important Insights - The transition from hardware to a service-oriented model has allowed Arlo to leverage operational efficiencies, with OPEX growth remaining low despite increasing subscriber numbers [20] - The company is focused on maintaining a balance between hardware sales and subscription growth, ensuring a diversified revenue stream [66] - Future pricing strategies may include the introduction of new service tiers based on consumer demand and behavior [70][71]

Group 1: Company Overview - Arlo Technologies (ARLO) is part of the Computer and Technology group, which consists of 603 companies and currently ranks 1 within the Zacks Sector Rank [2] - The Zacks Rank system, which emphasizes earnings estimates and revisions, currently gives Arlo Technologies a rank of 1 (Strong Buy) [3] Group 2: Performance Metrics - The Zacks Consensus Estimate for Arlo Technologies' full-year earnings has increased by 228.6% in the past quarter, indicating improved analyst sentiment and a positive earnings outlook [4] - Year-to-date, Arlo Technologies has returned approximately 28.6%, outperforming the average gain of 28.1% for the Computer and Technology group [4] Group 3: Industry Context - Arlo Technologies belongs to the Internet - Software industry, which includes 168 stocks and currently ranks 64 in the Zacks Industry Rank; this industry has gained about 8.2% year-to-date, indicating that ARLO is performing better than its peers [6] - In contrast, ASML, another outperforming stock in the Computer and Technology sector, belongs to the Semiconductor Equipment - Wafer Fabrication industry, which has seen a significant gain of 60.6% this year [6]

Core Insights - Arlo Technologies, Inc. is scheduled to present at the Raymond James TMT and Consumer Conference on December 9, 2025, with CEO Matthew McRae as the speaker [1] - The presentation will be available via webcast on Arlo's investor relations website [1] Company Overview - Arlo Technologies is recognized as a leader in smart home security, offering advanced solutions for home, business, and personal security [2] - The company utilizes AI and computer vision analytics, cloud services, and innovative connectivity to provide a seamless security experience [2] - Arlo's product lineup includes wire-free security cameras, video doorbells, floodlights, and subscription services like Arlo Secure and Arlo Safe [2] Commitment to Privacy - Arlo emphasizes user privacy and data protection, ensuring that personal information remains private and under user control [3] - The company does not monetize personal data and supports privacy legislation while maintaining robust security measures [3] Financial Performance - Arlo reported a significant increase in Annual Recurring Revenue (ARR) to $323 million, representing a 34% year-over-year growth [6] - The gross margin for non-GAAP subscriptions and services reached over 85%, marking a 770 basis points increase year-over-year [6]

Core Insights - The article emphasizes the importance of efficiency levels in assessing a company's potential for profit generation, with a high efficiency level correlating positively with price performance [1] Efficiency Ratios - Receivables Turnover measures a company's ability to extend credit and collect debts, with a high ratio indicating effective collection practices [2] - Asset Utilization indicates how well a company converts its assets into sales, with higher ratios suggesting greater efficiency [3] - Inventory Turnover assesses a company's ability to manage inventory relative to its cost of goods sold, where a high ratio indicates effective inventory management [4] - Operating Margin reflects a company's control over operating expenses, with a higher margin indicating better expense management compared to peers [5] Screening Criteria - The screening process included a favorable Zacks Rank of 1 (Strong Buy) alongside the efficiency ratios to identify potentially profitable stocks [6] - Stocks that exceeded industry averages in Inventory Turnover, Receivables Turnover, Asset Utilization, and Operating Margin were narrowed down from over 7,906 stocks to 12 [7] Selected Stocks - Tactile Systems Technology (TCMD) is noted for its efficiency ratios exceeding industry averages and has an average four-quarter earnings surprise of 29% [9] - Canadian Natural Resources Limited (CNQ) is recognized for its strong efficiency metrics and a 9.3% average earnings surprise [10] - Arlo Technologies (ARLO) has shown efficiency strengths with a 7.2% earnings surprise [11] - Celestica (CLS) is highlighted as a major electronics manufacturing services company with a 6.9% average earnings surprise [12]

Core Viewpoint - Arlo Technologies (ARLO) has received a Zacks Rank 1 (Strong Buy) upgrade due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which have shown a strong correlation with near-term stock price movements [4][6]. - For Arlo Technologies, the increase in earnings estimates indicates an improvement in the company's underlying business, likely leading to a rise in stock price [5][10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions [9][10]. Recent Performance of Arlo Technologies - For the fiscal year ending December 2025, Arlo Technologies is expected to earn $0.65 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 228.6% over the past three months [8].

Core Insights - Arlo Technologies (ARLO) is outperforming the Computer and Technology sector with a year-to-date gain of 26.4%, compared to the sector's average gain of 23.6% [4] - The Zacks Consensus Estimate for ARLO's full-year earnings has increased by 228.6% in the past quarter, indicating improved analyst sentiment and earnings outlook [4] - Arlo Technologies holds a Zacks Rank of 1 (Strong Buy), suggesting strong potential for future performance [3] Company Performance - Arlo Technologies is part of the Internet - Software industry, which consists of 168 companies and currently ranks 66 in the Zacks Industry Rank [6] - The average gain for stocks in the Internet - Software industry this year is 4.4%, highlighting ARLO's superior performance [6] Sector Comparison - The Computer and Technology sector includes 604 stocks and has a Zacks Sector Rank of 3, indicating a relatively strong position among 16 sector groups [2] - Another notable performer in the sector is Alphabet Inc. (GOOG), which has returned 45.4% year-to-date and has a Zacks Rank of 2 (Buy) [5][7]

Core Viewpoint - Arlo Technologies (ARLO) has experienced a significant decline of 19.4% in its stock price over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround as analysts expect better earnings than previously predicted [1][5][7]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to determine if a stock is oversold, with a reading below 30 indicating oversold conditions [2]. - ARLO's current RSI reading is 29.02, suggesting that the heavy selling pressure may be exhausting itself, indicating a possible reversal in the stock's trend [5]. Group 2: Fundamental Analysis - There has been a strong consensus among sell-side analysts to raise earnings estimates for ARLO, with the consensus EPS estimate increasing by 228.6% over the last 30 days [7]. - An upward trend in earnings estimate revisions typically correlates with price appreciation in the near term, further supporting the potential for a stock rebound [7]. Group 3: Analyst Ratings - ARLO holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a turnaround [8].

Core Insights - The article discusses the importance of enabling Javascript and cookies in browsers to prevent access issues [1] Group 1 - The article emphasizes that users may be blocked from proceeding if an ad-blocker is enabled [1]