Does Alarm.com (ALRM) Have the Potential to Rally 29.41% as Wall Street Analysts Expect?

Core Viewpoint - Alarm.com Holdings (ALRM) has seen a 6.3% increase in share price over the past four weeks, closing at $51.55, with a potential upside of 29.4% based on Wall Street analysts' mean price target of $66.71 [1]. Price Targets - The average price target consists of seven estimates ranging from a low of $55.00 to a high of $85.00, with a standard deviation of $12.19, indicating variability among analysts [2]. - The lowest estimate suggests a 6.7% increase from the current price, while the highest estimate indicates a 64.9% upside [2]. Analyst Sentiment - Analysts have shown increasing optimism regarding ALRM's earnings prospects, as evidenced by a strong consensus in revising earnings per share (EPS) estimates higher [4][11]. - Over the last 30 days, four estimates have been revised upward, resulting in a 9.2% increase in the Zacks Consensus Estimate for the current year [12]. Zacks Rank - ALRM holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for upside [13]. Conclusion on Price Movement - While the consensus price target may not be a reliable indicator of the extent of ALRM's potential gains, the direction implied by these targets appears to be a useful guide for investors [14].