Why Netgear (NTGR) May Finally Make Good on Its Discount

A computer networking company, Netgear (NTGR) should seemingly be relevant amid the rapid digitalization of society. However, competitive pressures and disappointing financial performances have yielded little but pain for stakeholders of NTGR stock recently. Since the January opener, Netgear lost almost 30% of equity value. In the trailing one-year period, shares stumbled more than 42%.

Still, because of the severe decline in NTGR stock, some contrarians believed that the security could be due for a comeback. On May 9, Barchart content partner Zacks Equity Research noted that “[a]fter declining 24.7% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory.”