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In a bid to bolster its Security Solutions portfolio, Alarm.com Holdings, Inc. (NASDAQ:ALRM) introduced a new mobile app, Smart Signal. The app is a free upgrade for existing customers and enables users to send an alert to the monitoring station in case of an emergency.
The app is user-friendly, given the fact that a false alarm can be stopped or an actual alert initiated from anywhere. Moreover, Smart Signal sends real-time information to the monitoring station, which enables security professionals to address an emergency and alert the local police or fire department.
We believe that Alarm is poised to benefit from this new app, which is devised to ensure home and workplace safety.
Coming to price performance, shares of Alarm have increased 47.7% over a year against the industry’s decline of 37.4%.
Product Details & Market Growth Prospects
To enable security professionals, prioritize emergencies and reduce false alarms, the app is equipped with two buttons to either verify or cancel the alarm.
The app provides users with video feeds and images of the place they wish to secure, before they decide to trigger an alert. Signals are subsequently sent to the monitoring station upon holding the verify button for a long time. Moreover, holding the cancel button notifies the monitoring station of a false alert.
Smart Signal also features a Panel Panic button, which is used when an emergency fails to trigger an alarm. Notably, a live location of the residence or workplace is sent along with a panic alert to the monitoring station.
Per reports, the security solution market is expected to reach $372.9 billion, witnessing a compounded annual growth rate (CAGR) of 10.2% between 2017 and 2022. We believe that growing demand in the security solution market is expected drive adoption of Alarm’s new offerings.
Alarm.com Holdings, Inc. Price and Consensus
Alarm.com Holdings, Inc. Price and Consensus | Alarm.com Holdings, Inc. Quote
Bottom Line
Alarm offers cloud-based security and home-automation products. By depending on cloud technology, the company significantly reduces operating costs and enables users to manage their home from anywhere. For instance, users can control almost anything in their home, including security systems, thermostats, light switches and even garage doors through a mobile application.
Per reports, the home automation segment is expected to reach $116.26 billion, witnessing CAGR of 6.8% between 2017 and 2026. Notably, Alarm is well poised to cement its position as a dominant force in the expanding home-automation industry.
In the last four quarters, Alarm.Com Holdings reported better-than-expected results. Average earnings surprise was a positive 27.26%. In third-quarter 2018, the company’s earnings of 36 cents per share surpassed the Zacks Consensus Estimate of 25 cents.
The company’s robust product portfolio and continued innovation will enable it to provide better services going ahead.
Zacks Rank & Stocks to Consider
Currently, Alarm carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader computer and technology sector include Verint Systems Inc. (NASDAQ:VRNT) , SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) , BlackBerry Limited (NYSE:BB) . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Expected long-term earnings growth rate for Verint, SS&C and Blackberry (TO:BB) is 10%, 13.5% and 18.6%, respectively.
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