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5 Stocks to Watch as IoT Market Looks Set to Gain Traction
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Internet of Things (IoT) has been gaining prominence over the past few years in the wake of rapid digital transformation. Notably, per a report by Mordor Intelligence, the global IoT market is estimated to reach a value of $1,386.06 billion by 2026 from $761.4 billion in 2020, at a CAGR of 10.53%. The report stated factors that are likely to contribute to market growth are the development of wireless networking technologies along with reduction in cost of connected devices, increase in adoption of cloud platform and rise in advanced data analytics.
Moreover, the report stated that IoT is being rapidly adopted in end-user industries like automotive, manufacturing and healthcare. The report also mentioned that IoT is changing the ways in which industries approach “increasingly complex processes of systems and machines to improve efficiency and reduce downtime.”
Per the report, the retail segment is set to witness high growth during the forecast period. This is because IoT allows retailers to attain insight into the performance of a product and allows them to find new ways of engaging with new and existing customers. Moreover, the rise in e-commerce, as users have become increasingly inclined toward online shopping owing to the convenience and the rising number of smartphone users, is likely to boost the IoT market further. In fact, despite COVID-19 woes, retail e-commerce managed to witness growth in 2020. Per a report by eMarketer, worldwide retail e-commerce sales increased an estimated 27.6% last year, showing an improvement from the previous mid-pandemic estimate of 16.5% growth.
Notably, the United States saw a substantial increase in e-commerce sales. Per a report by Digital Commerce 360, e-commerce grew 44% in 2020 versus 15.1% growth in 2019 and registered the highest annual e-commerce growth in at least two decades. Moreover, online spending accounted for 21.3% of total retail sales compared 15.8% in 2019. Such positive developments are sure to bode well for the growing IoT space as retailers look to adopt the technology for convenience.
5 Stocks to Keep an Eye On
The global IoT market seems poised to witness growth, thanks to the digital transformation that the world is witnessing, offering businesses, industries and consumers more convenience and efficiency. This makes it a good time to look at companies focused on IoT that can make the most of this trend going forward. Notably, we have picked five such stocks that carry a Zacks Rank #2 (Buy) or 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Alarm.com Holdings, Inc. (ALRM - Free Report) provides cloud-based software platform solutions for smart residential and commercial properties in the United States and internationally. The company provides interactive security solutions to control and monitor their security systems, as well as connected security devices. It currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has risen 0.6% over the past 60 days. The company’s expected earnings growth rate for the next five year is 20%.
Microsoft Corporation (MSFT - Free Report) develops, licenses, and supports software, services, devices, and solutions worldwide. Notably, the company offers Azure IoT hub that provides a cloud-hosted solution back end that helps connect any device virtually. It currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has moved 9.1% north over the past 60 days. The company’s expected earnings growth rate for the current year is 27.4%.
Intel Corporation (INTC - Free Report) designs, manufactures, and sells essential technologies for the cloud, smart, and connected devices for retail, industrial, and consumer uses worldwide. The company provides IoT products, including high-performance computing solutions for targeted verticals and embedded applications. It currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has risen 6.2% over the past 60 days. The company’s expected earnings growth rate for the next five years is 7.5%.
Cisco Systems, Inc. (CSCO - Free Report) designs, manufactures, and sells Internet Protocol- based networking and other products related to the communications and information technology industry. The company offers an end-to-end IoT portfolio to allow businesses to improve outcome. Its Cisco Kinetic IoT platform, allows users to securely connect devices and extract, compute and move IoT data. It currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings has moved up 1.6% over the past 60 days. The company’s expected earnings growth rate for next year is 5.9%.
Alphabet Inc. (GOOGL - Free Report) provides online advertising services and operates through Google Services, Google Cloud, and Other Bets segments. Notably, Google offers Cloud IoT Core, which provides a complete solution for IoT data in real time, in combination with other services on its Cloud IoT platform. Moreover, the company has a range of smart home devices like the Google Nest Mini or Nest Audio. The company currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings has climbed 10.5% over the past 60 days. The company’s expected earnings growth rate for the current year is 17.5%.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Bigstock
5 Stocks to Watch as IoT Market Looks Set to Gain Traction
Internet of Things (IoT) has been gaining prominence over the past few years in the wake of rapid digital transformation. Notably, per a report by Mordor Intelligence, the global IoT market is estimated to reach a value of $1,386.06 billion by 2026 from $761.4 billion in 2020, at a CAGR of 10.53%. The report stated factors that are likely to contribute to market growth are the development of wireless networking technologies along with reduction in cost of connected devices, increase in adoption of cloud platform and rise in advanced data analytics.
Moreover, the report stated that IoT is being rapidly adopted in end-user industries like automotive, manufacturing and healthcare. The report also mentioned that IoT is changing the ways in which industries approach “increasingly complex processes of systems and machines to improve efficiency and reduce downtime.”
Per the report, the retail segment is set to witness high growth during the forecast period. This is because IoT allows retailers to attain insight into the performance of a product and allows them to find new ways of engaging with new and existing customers. Moreover, the rise in e-commerce, as users have become increasingly inclined toward online shopping owing to the convenience and the rising number of smartphone users, is likely to boost the IoT market further. In fact, despite COVID-19 woes, retail e-commerce managed to witness growth in 2020. Per a report by eMarketer, worldwide retail e-commerce sales increased an estimated 27.6% last year, showing an improvement from the previous mid-pandemic estimate of 16.5% growth.
Notably, the United States saw a substantial increase in e-commerce sales. Per a report by Digital Commerce 360, e-commerce grew 44% in 2020 versus 15.1% growth in 2019 and registered the highest annual e-commerce growth in at least two decades. Moreover, online spending accounted for 21.3% of total retail sales compared 15.8% in 2019. Such positive developments are sure to bode well for the growing IoT space as retailers look to adopt the technology for convenience.
5 Stocks to Keep an Eye On
The global IoT market seems poised to witness growth, thanks to the digital transformation that the world is witnessing, offering businesses, industries and consumers more convenience and efficiency. This makes it a good time to look at companies focused on IoT that can make the most of this trend going forward. Notably, we have picked five such stocks that carry a Zacks Rank #2 (Buy) or 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Alarm.com Holdings, Inc. (ALRM - Free Report) provides cloud-based software platform solutions for smart residential and commercial properties in the United States and internationally. The company provides interactive security solutions to control and monitor their security systems, as well as connected security devices. It currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has risen 0.6% over the past 60 days. The company’s expected earnings growth rate for the next five year is 20%.
Microsoft Corporation (MSFT - Free Report) develops, licenses, and supports software, services, devices, and solutions worldwide. Notably, the company offers Azure IoT hub that provides a cloud-hosted solution back end that helps connect any device virtually. It currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has moved 9.1% north over the past 60 days. The company’s expected earnings growth rate for the current year is 27.4%.
Intel Corporation (INTC - Free Report) designs, manufactures, and sells essential technologies for the cloud, smart, and connected devices for retail, industrial, and consumer uses worldwide. The company provides IoT products, including high-performance computing solutions for targeted verticals and embedded applications. It currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has risen 6.2% over the past 60 days. The company’s expected earnings growth rate for the next five years is 7.5%.
Cisco Systems, Inc. (CSCO - Free Report) designs, manufactures, and sells Internet Protocol- based networking and other products related to the communications and information technology industry. The company offers an end-to-end IoT portfolio to allow businesses to improve outcome. Its Cisco Kinetic IoT platform, allows users to securely connect devices and extract, compute and move IoT data. It currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings has moved up 1.6% over the past 60 days. The company’s expected earnings growth rate for next year is 5.9%.
Alphabet Inc. (GOOGL - Free Report) provides online advertising services and operates through Google Services, Google Cloud, and Other Bets segments. Notably, Google offers Cloud IoT Core, which provides a complete solution for IoT data in real time, in combination with other services on its Cloud IoT platform. Moreover, the company has a range of smart home devices like the Google Nest Mini or Nest Audio. The company currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings has climbed 10.5% over the past 60 days. The company’s expected earnings growth rate for the current year is 17.5%.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>