After Plunging 19.4% in 4 Weeks, Here's Why the Trend Might Reverse for Arlo Technologies (ARLO)

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].