Is Arlo Technologies (ARLO) Stock Outpacing Its Computer and Technology Peers This Year?

The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Arlo Technologies (ARLO) been one of those stocks this year? Let’s take a closer look at the stock’s year-to-date performance to find out.

Arlo Technologies is one of 601 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #1 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Arlo Technologies is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for ARLO’s full-year earnings has moved 228.6% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, ARLO has moved about 25.6% on a year-to-date basis. In comparison, Computer and Technology companies have returned an average of 25.2%. This means that Arlo Technologies is outperforming the sector as a whole this year.

Another Computer and Technology stock, which has outperformed the sector so far this year, is Lam Research (LRCX). The stock has returned 138.5% year-to-date.

Over the past three months, Lam Research’s consensus EPS estimate for the current year has increased 8.5%. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Arlo Technologies is a member of the Internet – Software industry, which includes 168 individual companies and currently sits at #53 in the Zacks Industry Rank. This group has gained an average of 9.7% so far this year, so ARLO is performing better in this area.

On the other hand, Lam Research belongs to the Electronics – Semiconductors industry. This 45-stock industry is currently ranked #90. The industry has moved +38.3% year to date.

Arlo Technologies and Lam Research could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.

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

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.