The retail segment has been using technological advancements over the years, to improve customer experience, and boost efficiency and profitability. Reflective of this, the Internet of Things (“IoT”) technology has made significant in-roads within the retail space.
With the help of IoT, retailers gather useful data about their customers, such as product preference and purchase history, and gain actionable insights that aid in improving customer engagement. By analyzing the information, retailers can offer personalized recommendations to their customers, allowing them to find and eventually purchase their desired products.
Personalized recommendations have been popularized by online shopping, which gained further importance last year due to coronavirus. People began to shop conveniently from the comforts of their homes and have the ordered goods delivered at their doorsteps. The benefits that online shopping provides to consumers are set to propel the e-commerce market in the future as well. According to a
report by IMARC, the global e-commerce market is set to witness a CAGR of about 16% from 2021 to 2026.
Retailers are utilizing IoT to improve in-store experiences for customers as well. Through connected devices and location-based services, retailers provide personalized offers and discounts to their in-store visitors. IoT also makes it easier for visitors to navigate the store and find what they are looking for.
Besides that, IoT is also helping retailers in improving their supply chain management as well as logistics. Retailers can track the location of their products in real-time while they are being moved. IoT improves warehouse management as retailers can conveniently locate a product, thereby saving time. Even customers can be provided with real-time updates about their product delivery status. Since the products are being continuously monitored, IoT can also ensure that they are delivered to customers in the best of conditions.
Reflective of the myriad conveniences that IoT is bringing to the retail segment, it is no surprise that IoT in the retail market is expected to grow in the future. Per a
report by Mordor Intelligence, the global IoT in the retail market is estimated to witness a CAGR of 11.3% from 2021 to 2026. 4 Stocks to Keep an Eye On
The retail segment is becoming increasingly reliant on IoT for improving their customer experience, and better manage logistics and supply chain, among others. This makes it a good time then to look at companies offering IoT, which can benefit from this potential. We have selected four 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. Microsoft Corporation ( MSFT Quick Quote MSFT - Free Report) offers Azure IoT Hub which provides retail solutions, among others. Azure IoT provides businesses with retail-specific application templates, advanced retail analytics, and so on.
Shares of Microsoft have risen 36.8% year to date and the company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings increased 3.6% over the past 60 days. The company’s expected earnings growth rate for the current year is 8%.
Intel Corporation ( INTC Quick Quote 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, including high-performance compute solutions for targeted verticals and embedded applications. In the second quarter of 2021, the company’s Internet of Things Group segment generated revenues of $1.31 billion, increasing 60.7% year over year.
Shares of Intel have risen 4.4% year to date and it currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings increased 3.7% over the past 60 days. The company’s expected earnings growth rate for the next five years is 7.5%.
Cisco Systems, Inc. ( CSCO Quick Quote CSCO - Free Report) offers collaboration products comprising unified communications, Cisco TelePresence, and conferencing, as well as the IoT and analytics software, among others. It also offers Digital Retail Solutions.
Shares of this Zacks Rank #3 company have risen 30.1% year to date. The Zacks Consensus Estimate for its current-year earnings increased 0.3% over the past 60 days. The company’s expected earnings growth rate for the next five years is 6.3%.
Alphabet Inc.’s ( GOOGL Quick Quote GOOGL - Free Report) Google offers its Cloud IoT Core platform, which in combination with other services on Cloud IoT, provides a complete solution for IoT data in real time for improving operational efficiency. In fact, combined with machine learning, Google Cloud IoT delivers smarter solutions for retailers.
Shares of Alphabet have risen 56.8% year to date. The Zacks Consensus Estimate for its current-year earnings increased 14.3% over the past 60 days. The Zacks Rank #3 company’s expected earnings growth rate for the current year is 73.8%.