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Sensata (ST) Buys Elastic M2M to Enhance Cloud Capabilities
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Sensata Technologies (ST - Free Report) recently acquired Elastic M2M Inc. for an undisclosed amount to boost its cloud capabilities.
Founded in 2013, Elastic M2M specializes in the development of connected intelligence for operational assets across a variety of industrial segments. The company mainly serves telematics service providers (TSPs) and resellers by delivering flexible and cost-efficient Internet of Things (IoT) analytics. Further, the company allows its end customers to use its cloud platform and analytics capabilities to provide sensor-based operational insights.
Elastic M2M helps its customers make better operational decisions through its cloud platform using machine learning and artificial intelligence (AI) architecture to analyze data from connected assets. Its applications work with any operational asset and are easy to deploy on existing IoT tools to enhance efficacy.
Acquisition Benefits
The buyout of Elastic M2M validates Sensata’s position as a leading data insight provider by revving up its cloud and analytics capabilities which are crucial to providing actionable sensor-based insights. It will also augment Sensata’s sensor portfolio by bringing industry-dominating software and analytics solutions for fleet operators and a highly complementary channel strategy banking upon TSP relationships as partners in providing these solutions.
Further, the acquisition meaningfully advances Sensata’s Insight megatrend-focused growth initiative to become a data insight provider for fleet managers across transportation and logistics end markets. This gives them actionable data in the right place at the right time, demonstrating the company’s progress in this large, fast-growing market.
The latest acquisition builds upon Sensata’s earlier acquisitions of Xirgo Technologies and SmartWitness, which took place last year. These acquisitions will help expand Sensata’s total addressable market for Smart & Connected product offerings to $15 billion by 2030.
Prospects Bright
Known as the leading provider of mission-critical solutions, it has a diversified portfolio of personalized and unique sensor-rich applications from automotive braking systems to aircraft flight controls. These sensors are specifically designed to address complex engineering and operating performance requirements that help customers solve significant challenges in the industrial, heavy vehicle, off-road, and aerospace industries.
Sensata also has a rich portfolio of high-voltage protection and battery management systems. Its sensing solutions business has a strong product portfolio and greater scale to capitalize on attractive opportunities in the multi-billion global automotive sensor market.
Moreover, the company believes that its growing portfolio and accretive customer base, thanks to suitable acquisitions like Elastic M2M, serve as the cornerstone for healthy long-term success across diverse markets.
Sensata currently has a Zacks Rank #3 (Hold). Shares of ST have lost 4.7% against the industry’s growth of 0.1% in the past year.
Progress Software has a projected earnings growth rate of 3.62% for fiscal 2022. The Zacks Consensus Estimate for Progress Software’s fiscal 2022 earnings has been revised upward by 6 cents in the past 60 days. The long-term earnings growth rate of the company is pegged at 2%.
Progress Software’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 26.8%. Shares of PRGS have lost 5.8% in the past year.
Badger Meter has a projected earnings growth rate of 5.77% for 2022. The Zacks Consensus Estimate for Badger Meter’s 2022 earnings has been revised upward by 19 cents in the past 60 days.
Badger Meter’s earnings beat the Zacks Consensus Estimate in three of the last four quarters and met estimates once, the average surprise being 14%. Shares of BMI have dropped 11.2% in the past year.
Cadence has a projected earnings growth rate of 7.9% for 2022. The Zacks Consensus Estimate for Cadence’s 2022 earnings has been unchanged in the past 90 days. The long-term earnings growth rate of the company is pegged at 18.2%.
Cadence’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 9.66%. Shares of CDNS have rallied 1% in the past year.
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Sensata (ST) Buys Elastic M2M to Enhance Cloud Capabilities
Sensata Technologies (ST - Free Report) recently acquired Elastic M2M Inc. for an undisclosed amount to boost its cloud capabilities.
Founded in 2013, Elastic M2M specializes in the development of connected intelligence for operational assets across a variety of industrial segments. The company mainly serves telematics service providers (TSPs) and resellers by delivering flexible and cost-efficient Internet of Things (IoT) analytics. Further, the company allows its end customers to use its cloud platform and analytics capabilities to provide sensor-based operational insights.
Elastic M2M helps its customers make better operational decisions through its cloud platform using machine learning and artificial intelligence (AI) architecture to analyze data from connected assets. Its applications work with any operational asset and are easy to deploy on existing IoT tools to enhance efficacy.
Acquisition Benefits
The buyout of Elastic M2M validates Sensata’s position as a leading data insight provider by revving up its cloud and analytics capabilities which are crucial to providing actionable sensor-based insights. It will also augment Sensata’s sensor portfolio by bringing industry-dominating software and analytics solutions for fleet operators and a highly complementary channel strategy banking upon TSP relationships as partners in providing these solutions.
Further, the acquisition meaningfully advances Sensata’s Insight megatrend-focused growth initiative to become a data insight provider for fleet managers across transportation and logistics end markets. This gives them actionable data in the right place at the right time, demonstrating the company’s progress in this large, fast-growing market.
The latest acquisition builds upon Sensata’s earlier acquisitions of Xirgo Technologies and SmartWitness, which took place last year. These acquisitions will help expand Sensata’s total addressable market for Smart & Connected product offerings to $15 billion by 2030.
Prospects Bright
Known as the leading provider of mission-critical solutions, it has a diversified portfolio of personalized and unique sensor-rich applications from automotive braking systems to aircraft flight controls. These sensors are specifically designed to address complex engineering and operating performance requirements that help customers solve significant challenges in the industrial, heavy vehicle, off-road, and aerospace industries.
Sensata also has a rich portfolio of high-voltage protection and battery management systems. Its sensing solutions business has a strong product portfolio and greater scale to capitalize on attractive opportunities in the multi-billion global automotive sensor market.
Moreover, the company believes that its growing portfolio and accretive customer base, thanks to suitable acquisitions like Elastic M2M, serve as the cornerstone for healthy long-term success across diverse markets.
Sensata currently has a Zacks Rank #3 (Hold). Shares of ST have lost 4.7% against the industry’s growth of 0.1% in the past year.
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3 Solid Picks
Some better-ranked stocks from the broader technology space include Progress Software (PRGS - Free Report) , Badger Meter (BMI - Free Report) and Cadence Design Systems (CDNS - Free Report) . While Progress Software and Badger Meter sport a Zacks Rank #1 (Strong Buy), Cadence carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Progress Software has a projected earnings growth rate of 3.62% for fiscal 2022. The Zacks Consensus Estimate for Progress Software’s fiscal 2022 earnings has been revised upward by 6 cents in the past 60 days. The long-term earnings growth rate of the company is pegged at 2%.
Progress Software’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 26.8%. Shares of PRGS have lost 5.8% in the past year.
Badger Meter has a projected earnings growth rate of 5.77% for 2022. The Zacks Consensus Estimate for Badger Meter’s 2022 earnings has been revised upward by 19 cents in the past 60 days.
Badger Meter’s earnings beat the Zacks Consensus Estimate in three of the last four quarters and met estimates once, the average surprise being 14%. Shares of BMI have dropped 11.2% in the past year.
Cadence has a projected earnings growth rate of 7.9% for 2022. The Zacks Consensus Estimate for Cadence’s 2022 earnings has been unchanged in the past 90 days. The long-term earnings growth rate of the company is pegged at 18.2%.
Cadence’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 9.66%. Shares of CDNS have rallied 1% in the past year.