Alarm.Com Holdings Hits New 52-Week High On Improved View

Shares of Alarm.Com Holdings, Inc. (NASDAQ:ALRM) reached a new 52-week high of $35.99 during its trading session on Jun 7. This apex improved upon the last 52-week high of $35.91 on Jun 5.

In the last three months, shares of the company yielded 20.91% return, outperforming the gain of just 3.03% seen by the Zacks categorized Protection Safety Equipment and Services industry.

On Jun 7, Alarm.Com Holdings closed its trading session at $35.62, yielding a year-to-date return of roughly 28%. The trading volume for the session was approximately 0.43 million shares. Positive earnings estimate revisions for 2017, along with an expected earnings growth rate of 17.60% for the next five years indicate the stock’s potential for further price appreciation.

Growth Drivers

In the last four quarters, Alarm.Com Holdings reported better-than-expected results. Average earnings surprise was a positive 46.54%. In the recently reported first-quarter 2017 results, the company’s earnings of 19 cents per share surpassed the Zacks Consensus Estimate of 13 cents by 46.15%.

Alarm.Com Holdings reported improved SaaS and license revenues in the quarter. It anticipates its revenues to come within $57.8−$58 million range in the second quarter. At mid-point, the forecast represents roughly 15.3% increase over $50.2 million generated in the first quarter.

Also, the company believes that new products will enable it to provide better services to its customers and hence improve profitability. Non-GAAP earnings are now expected to be 74−76 cents per share, up from the previous expectation of 73−75 cents. In addition, Alarm.Com Holdings marginally increased its revenue guidance to $322.7−$325.7 million from the earlier forecast of $322−$325.5 million.

Over the last 60 days, the Zacks Consensus Estimate for Alarm.Com Holdings increased 1.5% to 68 cents for 2017. Also, the estimates represent year-over-year growth of 15.59%.

Zacks Rank & Stock to Consider

With a market capitalization of $1.65 billion, Alarm.Com Holdings currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include Allegion PLC (NYSE:ALLE) , G4S (CO:G4S) PLC (OTC:GFSZY) and MSA Safety Incorporated (NYSE:MSA) . All these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Allegion PLC pulled off an average positive earnings surprise of 2.01% for the last four quarters. Also, its earnings estimates for 2017 and 2018 were revised upward over the last 60 days.

G4S PLC’s earnings estimates for 2017 and 2018 improved over the past 60 days.

MSA Safety Incorporated’ financial performance was impressive, with an average positive earnings surprise of 7.77% for the last four quarters. Also, its earnings estimates for 2017 and 2018 were revised upward over the last 60 days.

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