Bull of the Day: Arlo Technologies (ARLO)

Sometimes Wall Street gets so wrapped up in chasing the biggest names in tech that it forgets about the companies quietly carving out their own corner of growth. Everybody spends so much time focused on the likes of NVDA and other AI names they forget about the slow and steady growth names out there. One of those names is today’s Bull of the Day, Arlo Technologies (ARLO).

Arlo Technologies is the smart home security company that has gone from a niche player to a serious contender in connected devices. With a Zacks Rank #1 (Strong Buy) and bullish earnings estimate revisions flowing in, Arlo is showing investors why it deserves a closer look.

Arlo’s bread and butter is its lineup of connected security cameras, video doorbells, floodlights, and subscription services that turn hardware sales into recurring, high-margin revenue streams. The company’s latest earnings report highlighted revenue growth north of expectations, driven by strong adoption of its subscription platform. Analysts have taken notice.  Over the last 30 days, upward revisions have pushed the Zacks Consensus Estimate for next year from 73 cents to 78 cents. That means that this year’s 57.5% earnings growth is forecast to swell another 24.87% next year.

The secular tailwinds are also undeniable. Consumers are spending more on home security and smart devices as part of the broader “connected lifestyle” trend. That means Arlo isn’t just selling a camera, it’s tapping into an ecosystem that blends AI-powered detection, cloud services, and ease of use. With gross margins expanding as the subscription side of the business scales, Arlo’s financial profile is becoming more attractive with each quarter.

Arlo Technologies, Inc. Price and Consensus

Arlo Technologies, Inc. price-consensus-chart | Arlo Technologies, Inc. Quote

Sure, the mega-cap tech darlings grab the headlines, but sometimes the most compelling opportunities are hiding in plain sight. Arlo may not be a trillion-dollar behemoth, but it’s got the growth trajectory, industry positioning, and analyst backing that make it today’s Bull of the Day.

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This article originally published on Zacks Investment Research (zacks.com).

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