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IIoT Boosts Manufacturing Processes: 4 Stocks Set to Benefit
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The global manufacturing industry is poised to gain heavily from digital transformation led by the industrial Internet of Things (IIoT). The requirement for improved efficiency and productivity can be achieved by implementing IIoT, which harnesses the power of real-time analytics and smart machines.
Global Growth Projections for IIoT
According to Report Buyer, the IIoT market is set to witness compound annual growth rate of 33.4% during the period of 2018-2023, up from $3.27 billion in 2018 to $13.82 billion by 2023.
North America is anticipated to emerge as the global leader in the IIoT market by virtue of its technological advancement, with the United States and Canada being major contributors. Asia Pacific region is estimated to witness the highest CAGR during 2018-2023.
IIoT Holds the Ultimate Solution for Manufacturing Industry
Rising demand for efficient manufacturing systems, location tracking, centralized monitoring and prediction of faults for maintenance are some of the major factors boosting the IIoT market.
However, predictive maintenance is of utmost importance among these. Why? This is because defects in machinery and industrial breakdowns cost time and money to businesses, which directly affects production. This can be avoided if organizations can analyze real-time data provided by IIoT systems. If machinery downtime can be predicted in advance, it can be taken care of without production being hampered and ensuring better safety standards for human operators.
Second, the manufacturing industry is incurring talent shortages in recent years. IIoT implementation is helping the industry overcome just that. Physical assets are monitored by sensors to gather data that can be analyzed simultaneously, thus transforming traditional, linear manufacturing units into a singular, interconnected system that is dynamic.
Third, IIoT aids location-tracking, which means that the time spent in looking for equipment, finished goods and tools is diminished significantly. This improves efficiency and inventory management.
Our Choices
We have chosen four stocks that are operating in the area of IIoT and thus are well-positioned to benefit from the trend.
Zebra Technologies Corporation (ZBRA - Free Report) manufactures a wide range of automatic identification and data capture products.
The company describes IIoT as a technology that allows organizations to keep track of their vital assets and operations. Zebra Technologies works with various businesses globally to offer solutions that provide real-time insight into their operations and assets.
Zebra Technologies has a Zacks Rank #1 (Strong Buy) and its expected earnings growth rate for the current year is 13.4% compared with the Zacks Manufacturing – Thermal Products industry’s projected rise of 8.2%. Its Zacks Consensus Estimate for current-year earnings has risen 6.8% in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cisco Systems, Inc. (CSCO - Free Report) designs and manufactures Internet Protocol based networking and other products related to the communications and information technology industry.
Cisco is using its platform Kinetic System to take charge of the application of IoT activities in manufacturing. This system allows any type of data input, normalizes data flow and puts it in a common management platform, thus making data secure and manageable throughout the manufacturing process. The company is integrating its Kinetic System with IBM’s Watson IoT system for better data processing and network edge intelligence.
Cisco Systems has a Zacks Rank #2 (Buy) and its expected earnings growth rate for the current year is 17.7% against the Zacks Computer – Networking industry’s projected decline of 0.4%. Its Zacks Consensus Estimate for current-year earnings has risen 1.3% in the past 60 days.
Schneider Electric S.E. (SBGSY - Free Report) offers industrial automation solutions and energy management systems.
The company’s EcoStruxure architecture and IIoT technologies are guiding the digital transformation of industrial automation. Schneider is introducing smart manufacturing through IIoT that can improve productivity and profitability significantly. WonderWare, the company’s IIoT network, can be used to centrally monitor and manage all electrical machinery. Schneider Electric has a Zacks Rank #2 and its expected earnings growth rate for the current year is 7.3%.
SAP SE (SAP - Free Report) is a business intelligence company that offers enterprise application software and analytics etc.
The company’s manufacturing software that uses IIoT helps digitize manufacturing operations and improve efficiency and productivity. This gives rise to integrated industrial operations that can be monitored from a control center. SAP has a Zacks Rank #2 and its expected earnings growth rate for the current year is 5.5%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
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IIoT Boosts Manufacturing Processes: 4 Stocks Set to Benefit
The global manufacturing industry is poised to gain heavily from digital transformation led by the industrial Internet of Things (IIoT). The requirement for improved efficiency and productivity can be achieved by implementing IIoT, which harnesses the power of real-time analytics and smart machines.
Global Growth Projections for IIoT
According to Report Buyer, the IIoT market is set to witness compound annual growth rate of 33.4% during the period of 2018-2023, up from $3.27 billion in 2018 to $13.82 billion by 2023.
North America is anticipated to emerge as the global leader in the IIoT market by virtue of its technological advancement, with the United States and Canada being major contributors. Asia Pacific region is estimated to witness the highest CAGR during 2018-2023.
IIoT Holds the Ultimate Solution for Manufacturing Industry
Rising demand for efficient manufacturing systems, location tracking, centralized monitoring and prediction of faults for maintenance are some of the major factors boosting the IIoT market.
However, predictive maintenance is of utmost importance among these. Why? This is because defects in machinery and industrial breakdowns cost time and money to businesses, which directly affects production. This can be avoided if organizations can analyze real-time data provided by IIoT systems. If machinery downtime can be predicted in advance, it can be taken care of without production being hampered and ensuring better safety standards for human operators.
Second, the manufacturing industry is incurring talent shortages in recent years. IIoT implementation is helping the industry overcome just that. Physical assets are monitored by sensors to gather data that can be analyzed simultaneously, thus transforming traditional, linear manufacturing units into a singular, interconnected system that is dynamic.
Third, IIoT aids location-tracking, which means that the time spent in looking for equipment, finished goods and tools is diminished significantly. This improves efficiency and inventory management.
Our Choices
We have chosen four stocks that are operating in the area of IIoT and thus are well-positioned to benefit from the trend.
Zebra Technologies Corporation (ZBRA - Free Report) manufactures a wide range of automatic identification and data capture products.
The company describes IIoT as a technology that allows organizations to keep track of their vital assets and operations. Zebra Technologies works with various businesses globally to offer solutions that provide real-time insight into their operations and assets.
Zebra Technologies has a Zacks Rank #1 (Strong Buy) and its expected earnings growth rate for the current year is 13.4% compared with the Zacks Manufacturing – Thermal Products industry’s projected rise of 8.2%. Its Zacks Consensus Estimate for current-year earnings has risen 6.8% in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cisco Systems, Inc. (CSCO - Free Report) designs and manufactures Internet Protocol based networking and other products related to the communications and information technology industry.
Cisco is using its platform Kinetic System to take charge of the application of IoT activities in manufacturing. This system allows any type of data input, normalizes data flow and puts it in a common management platform, thus making data secure and manageable throughout the manufacturing process. The company is integrating its Kinetic System with IBM’s Watson IoT system for better data processing and network edge intelligence.
Cisco Systems has a Zacks Rank #2 (Buy) and its expected earnings growth rate for the current year is 17.7% against the Zacks Computer – Networking industry’s projected decline of 0.4%. Its Zacks Consensus Estimate for current-year earnings has risen 1.3% in the past 60 days.
Schneider Electric S.E. (SBGSY - Free Report) offers industrial automation solutions and energy management systems.
The company’s EcoStruxure architecture and IIoT technologies are guiding the digital transformation of industrial automation. Schneider is introducing smart manufacturing through IIoT that can improve productivity and profitability significantly. WonderWare, the company’s IIoT network, can be used to centrally monitor and manage all electrical machinery. Schneider Electric has a Zacks Rank #2 and its expected earnings growth rate for the current year is 7.3%.
SAP SE (SAP - Free Report) is a business intelligence company that offers enterprise application software and analytics etc.
The company’s manufacturing software that uses IIoT helps digitize manufacturing operations and improve efficiency and productivity. This gives rise to integrated industrial operations that can be monitored from a control center. SAP has a Zacks Rank #2 and its expected earnings growth rate for the current year is 5.5%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>