Why Arlo Technologies, Inc. (NYSE:ARLO) Could Be Worth Watching

Arlo Technologies, Inc. (NYSE:ARLO), is not the largest company out there, but it saw a decent share price growth of 11% on the NYSE over the last few months. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Today we will analyse the most recent data on Arlo Technologies’s outlook and valuation to see if the opportunity still exists.

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What Is Arlo Technologies Worth?

Great news for investors – Arlo Technologies is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is $25.07, but it is currently trading at US$17.43 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Arlo Technologies’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

See our latest analysis for Arlo Technologies

Can we expect growth from Arlo Technologies?

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. However, with a relatively muted revenue growth of 7.4% expected in the upcoming year, short term growth doesn’t seem like a key driver for a buy decision for Arlo Technologies.

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 accumulate more of your holdings in the stock. However, there are also other factors such as capital structure 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.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's 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.