What Is Arlo Technologies, Inc.'s (NYSE:ARLO) Share Price Doing?

While Arlo Technologies, Inc. (NYSE:ARLO) might not have the largest market cap around , it received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$14.38 at one point, and dropping to the lows of US$10.53. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Arlo Technologies' current trading price of US$10.53 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Arlo Technologies’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

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What's The Opportunity In Arlo Technologies?

Good news, investors! Arlo Technologies is still a bargain right now. According to our valuation, the intrinsic value for the stock is $16.97, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that Arlo Technologies’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

View our latest analysis for Arlo Technologies

What kind of growth will Arlo Technologies generate?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Though in the case of Arlo Technologies, it is expected to deliver a relatively unexciting top-line growth of 9.8% in the next few years, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since ARLO is currently undervalued, it may be a great time to increase your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on ARLO for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy ARLO. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.

If you want to dive deeper into Arlo Technologies, you'd also look into what risks it is currently facing. Case in point: We've spotted 1 warning sign for Arlo Technologies you should be aware of.

If you are no longer interested in Arlo Technologies, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.