While Arlo Technologies, Inc. (NYSE:ARLO) might not have the largest market cap around , it saw a significant share price rise of 31% in the past couple of months on the NYSE. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. 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.

View our latest analysis for Arlo Technologies

What Is Arlo Technologies Worth?

According to our valuation model, Arlo Technologies seems to be fairly priced at around 17% below our intrinsic value, which means if you buy Arlo Technologies today, you’d be paying a fair price for it. And if you believe that the stock is really worth $17.40, then there’s not much of an upside to gain from mispricing. So, is there another chance to buy low in the future? 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 an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.

Can we expect growth from Arlo Technologies?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. However, with a relatively muted revenue growth of 9.8% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Arlo Technologies, at least in the short term.

What This Means For You

Are you a shareholder? It seems like the market has already priced in ARLO’s future outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping tabs on ARLO, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. At Simply Wall St, we found 1 warning sign for Arlo Technologies and we think they deserve your attention.

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.