Shares of Control4 Corporation (NASDAQ:CTRL) climbed 19% in September, according to data from S&P Global Market Intelligence, with the movement probably stemming from ratings upgrades and new product launches.

So what

Control4 specializes in connected technologies and services for high-end homes and businesses and has a market cap of roughly $750 million. Because of the company's relatively small size, its stock can post big movements on ratings coverage and other news. 

In product news, the company announced and launched a new line of Triad-branded multi-room audio equipment on Sept. 6. Control4 reports that over 65% of its customers make use of its multi-room audio setups, so the recently released switches and amps are likely to enjoy solid adoption numbers among the company's client base.

Cowen and Company issued a new research note on the stock on Sept. 8, raising its rating on the stock from "market perform" to "outperform" and moving its price target from $22 to $30. The note pointed to the release of the Triad audio equipment, a new router, and other new features as reasons for the upgrade. Following that, Needham & Company raised its price target on Control4 from $25 to $27 on Sept. 11.

Control 4 software running on a laptop, a smartphone, and two tablets.

Image source: Control4.

Now what

After gaining roughly 200% year to date, Control4 trades at roughly 30 times forward earnings, but the stock could still have room to run at that price. While the company's earnings multiple looks high, a forward price-to-earnings growth ratio of just 0.3 suggests the stock might still be undervalued. The company estimates that it has reached less than 2% of its addressable market in the high-end home space, which points to a huge growth avenue as smart home technology adoption becomes increasingly mainstream.

Control4 is scheduled to report third-quarter earnings results on Nov. 2.

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.