S&P 500   4,377.64 (-0.74%)
DOW   34,398.74 (+0.10%)
QQQ   346.34 (-1.97%)
AAPL   160.67 (-0.59%)
MSFT   290.75 (-1.90%)
FB   302.03 (-2.16%)
GOOGL   2,556.40 (-2.28%)
AMZN   2,800.97 (-3.11%)
TSLA   928.67 (-0.14%)
NVDA   224.71 (-3.86%)
BABA   119.90 (-0.39%)
NIO   23.99 (-3.54%)
AMD   111.87 (-4.00%)
CGC   7.39 (-0.14%)
MU   81.13 (-2.19%)
GE   91.03 (-6.07%)
T   26.44 (+0.38%)
F   20.08 (-1.52%)
DIS   136.45 (-0.73%)
AMC   16.13 (-3.06%)
PFE   52.39 (+1.65%)
ACB   4.22 (-2.31%)
BA   203.75 (-0.22%)
S&P 500   4,377.64 (-0.74%)
DOW   34,398.74 (+0.10%)
QQQ   346.34 (-1.97%)
AAPL   160.67 (-0.59%)
MSFT   290.75 (-1.90%)
FB   302.03 (-2.16%)
GOOGL   2,556.40 (-2.28%)
AMZN   2,800.97 (-3.11%)
TSLA   928.67 (-0.14%)
NVDA   224.71 (-3.86%)
BABA   119.90 (-0.39%)
NIO   23.99 (-3.54%)
AMD   111.87 (-4.00%)
CGC   7.39 (-0.14%)
MU   81.13 (-2.19%)
GE   91.03 (-6.07%)
T   26.44 (+0.38%)
F   20.08 (-1.52%)
DIS   136.45 (-0.73%)
AMC   16.13 (-3.06%)
PFE   52.39 (+1.65%)
ACB   4.22 (-2.31%)
BA   203.75 (-0.22%)
S&P 500   4,377.64 (-0.74%)
DOW   34,398.74 (+0.10%)
QQQ   346.34 (-1.97%)
AAPL   160.67 (-0.59%)
MSFT   290.75 (-1.90%)
FB   302.03 (-2.16%)
GOOGL   2,556.40 (-2.28%)
AMZN   2,800.97 (-3.11%)
TSLA   928.67 (-0.14%)
NVDA   224.71 (-3.86%)
BABA   119.90 (-0.39%)
NIO   23.99 (-3.54%)
AMD   111.87 (-4.00%)
CGC   7.39 (-0.14%)
MU   81.13 (-2.19%)
GE   91.03 (-6.07%)
T   26.44 (+0.38%)
F   20.08 (-1.52%)
DIS   136.45 (-0.73%)
AMC   16.13 (-3.06%)
PFE   52.39 (+1.65%)
ACB   4.22 (-2.31%)
BA   203.75 (-0.22%)
S&P 500   4,377.64 (-0.74%)
DOW   34,398.74 (+0.10%)
QQQ   346.34 (-1.97%)
AAPL   160.67 (-0.59%)
MSFT   290.75 (-1.90%)
FB   302.03 (-2.16%)
GOOGL   2,556.40 (-2.28%)
AMZN   2,800.97 (-3.11%)
TSLA   928.67 (-0.14%)
NVDA   224.71 (-3.86%)
BABA   119.90 (-0.39%)
NIO   23.99 (-3.54%)
AMD   111.87 (-4.00%)
CGC   7.39 (-0.14%)
MU   81.13 (-2.19%)
GE   91.03 (-6.07%)
T   26.44 (+0.38%)
F   20.08 (-1.52%)
DIS   136.45 (-0.73%)
AMC   16.13 (-3.06%)
PFE   52.39 (+1.65%)
ACB   4.22 (-2.31%)
BA   203.75 (-0.22%)

7 Internet of Things Stocks That Are a Perfect Fit to Our Connected Future

Posted on Thursday, March 4th, 2021 by MarketBeat Staff
7 Internet of Things Stocks That Are a Perfect Fit to Our Connected FutureWhen you say the Internet of Things (IoT) you may get different responses. I like to think of it broadly as being about connection. It’s about devices that can connect with each other, and with the internet. And this provides users with the solutions that are making our lives more convenient.

The most basic, and ubiquitous, example of an IoT device is the smartphone that many of us have with us at all times. But think about what that has led to. Home assistants, security cameras, fitness apps, and so much more are all enabled by the internet of things.

IoT took on even more importance in the pandemic as businesses had to find a way to ensure the security and viability of their networks even as their employees were scattered remotely. This created demand for edge and cloud computing solutions that are also facilitated by the internet of things.

And yes, this is just the start. The need for more and more data is powering demand for IoT solution in areas such as autonomous vehicles.

But the good news is that this is an area that is still very much in its growth phase. And that means there is no lack of companies that you can find to trade in this sector. To help you get started, we’ve put together this special presentation that highlights seven such companies and the reasons why we believe they merit adding to your portfolio.

#1 - Apple (NASDAQ:AAPL)

Apple logo

The first of the IoT stocks to consider is Apple (NASDAQ:AAPL). One reason to consider Apple is its ecosystem. The company has a loyal, committed user base that goes beyond its iconic iPhone to include the Apple Watch and AirPods. Because of this, Apple is as close as any company with the exception of Amazon (NASDAQ:AMZN) as having all the pieces needed to normalize a “smart home” with devices from a single brand. 

That would be enough to put Apple on this list. But the company has big plans to move into the healthcare space. The company has recently launched its Apple Health Records project. The purpose of this project is to monitor patients and keep track of their health in real-time by integrating various Apple products.

 Right now this initiative is in its early stages. The company is partnering with several university medical centers most notably Duke and Stanford. However, Apple has big plans for expanding its healthcare reach. Given the company’s track record that would appear to be a good bet. Plus, you can get APPL stock for a nice discount compared to where it was trading in January.

About Apple

Apple, Inc engages in the design, manufacture, and sale of smartphones, personal computers, tablets, wearables and accessories, and other variety of related services. It operates through the following geographical segments: Americas, Europe, Greater China, Japan, and Rest of Asia Pacific. The Americas segment includes North and South America.Read More 
Current Price
$160.67
Consensus Rating
Buy
Ratings Breakdown
25 Buy Ratings, 5 Hold Ratings, 1 Sell Ratings.
Consensus Price Target
$178.83 (11.3% Upside)




#2 - Qualcomm (NASDAQ:QCOM)

QUALCOMM logo

A year ago, I wouldn’t have been quite as sold on Qualcomm (NASDAQ:QCOM). The company was mired in a legal dispute with Apple. At stake was Qualcomm’s role as chip provider for the iPhone. However, the two sides managed to reach a multi-year agreement that, for now, leaves Qualcomm as the sole provider of chips for the iPhone.

At some point, Qualcomm’s partnership with Apple may end. And there’s no question that smartphones are one of the key devices in a connected future. However, Qualcomm also does business across other areas of the IoT sphere. For example, late in 2020 the company announced a partnership with DISH Network (NASDAQ:DISH) to help them develop their O-RAN compliant 5G network. The build-out of a 5G infrastructure will remain a catalyst in this sector for years to come.

At the time of this writing, QCOM was trading at a significant discount to the 12-month price target laid out by analysts. The stock is also down about 12% for the year and pays a dividend with a yield of right around 2%.

About QUALCOMM

QUALCOMM, Inc engages in the development, design, and provision of digital telecommunications products and services. It operates through the following segments: Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL), and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software based on technologies for the use in voice and data communications, networking, application processing, multimedia, and global positioning system products.Read More 
Current Price
$167.43
Consensus Rating
Buy
Ratings Breakdown
12 Buy Ratings, 10 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$183.95 (9.9% Upside)




#3 - Intel (NASDAQ:INTC)

Intel logo

Like Qualcomm, Intel (NASDAQ:INTC) has many ways to benefit from the emergence of the internet of things. Some of the company’s initiatives, for example in the area of autonomous vehicles, will not come to fruition for several years. However, Intel is also a key player in such areas as edge computing, data centers and drones. Plus, the company has applications in key fields that will always drive the economy such as banking, education and healthcare.

If you bought shares of INTC stock last year, you know it’s been a volatile time for the company. It’s never a good thing for a chipmaker to have a defect in your next generation of chips. Intel has paid the price for this. 

However, since the beginning of the year, the stock is having a nice upswing of nearly 20%. And shares are a trading at price/earnings ratio of under 12 which makes this a good value in the sector.

About Intel

Intel Corp. engages in the design, manufacture, and sale of computer products and technologies. It delivers computer, networking, data storage, and communications platforms. The firm operates through the following segments: Client Computing Group (CCG), Data Center Group (DCG), Internet of Things Group (IOTG), Non-Volatile Memory Solutions Group (NSG), Programmable Solutions (PSG), and All Other.Read More 
Current Price
$51.11
Consensus Rating
Hold
Ratings Breakdown
8 Buy Ratings, 13 Hold Ratings, 10 Sell Ratings.
Consensus Price Target
$56.96 (11.5% Upside)




#4 - Nvidia (NASDAQ:NVDA)

NVIDIA logo

The last of the chipmakers I’ve put on this list is Nvidia (NASDAQ:NVDA). This is a company that is having no problem meeting expectations. Nvidia just delivered an earnings report that saw it beat expectations for both revenue and earnings per share. INTC stock is up 77% in the last 12 months, but it has taken an 8% drop in the last month.

However, based on the company’s earnings report, this appears to be nothing more than Nvidia being caught up in the overall selloff going on with tech stocks.

The company benefited from the pandemic as the shift to working from home expanded demand for the company’s graphic processing units (GPUs). And being at home also stirred demand among gamers for GPUs that could deliver the speed and performance they needed. Early in 2021, the company is benefiting from renewed demand in cryptocurrency mining via its GPUs.

But where investors should really be paying attention is in Nvidia’s role in helping plan out “smart cities.” This is still an emerging sector of the IoT market, but it’s projected to take on much more significance in the coming years.

About NVIDIA

NVIDIA Corp. engages in the design and manufacture of computer graphics processors, chipsets, and related multimedia software. It operates through the following segments: Graphics Processing Unit (GPU), Tegra Processor, and All Other. The GPU segment comprises of product brands, which aims specialized markets including GeForce for gamers; Quadro for designers; Tesla and DGX for AI data scientists and big data researchers; and GRID for cloud-based visual computing users.Read More 
Current Price
$224.71
Consensus Rating
Buy
Ratings Breakdown
28 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$329.04 (46.4% Upside)




#5 - DexCom (NASDAQ:DXCM)

DexCom logo

Some parts of the internet of things may feel superfluous. Yes, it’s the role of technology to provide solutions that make our life easier. However, at times, it gives us solutions for problems we never really needed to be solved. DexCom (NASDAQ:DXCM) is in the former category and was an easy choice for this list.

What you need to know about DexCom is that they operate in a distinct niche. However, it’s a niche that has a large addressable market. The company provides a glucose monitoring app for diabetics.

One of the daily challenges that diabetics face is the need to monitor their blood sugar. This is typically done by pricking their finger, sometimes as many as seven times a day. DexCom’s app-based tool automatically monitors blood sugar levels with no fingersticks. The system uses an implantable sensor that connects to a smartphone or watch. This allows users to check their levels at any moment.

DXCM stock is up 28% in the last 12 months with analysts giving the stock a nearly 20% upside in the next 12 months.

About DexCom

DexCom, Inc is a medical device manufacturing company, which engages in the design, development and commercialization of glucose monitoring systems for ambulatory use by people with diabetes. Its products include Dexcom G6 CGM System, DexCom G6 CGM System for Medicare, Software and Mobile apps. The company was founded by John F.Read More 
Current Price
$406.95
Consensus Rating
Buy
Ratings Breakdown
13 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$587.64 (44.4% Upside)




#6 - Roku (NASDAQ:ROKU)

Roku logo

Roku (NASDAQ:ROKU) is not a pure-play IoT stock. Nevertheless, it’s well worth your consideration, especially for those looking for stocks to hold over the long haul. The reason is this. There are a lot of companies that are competing in the streaming wars. But if consumers have a Roku TV or Roku stick, the company benefits no matter which one of the streaming services the user chooses.

Roku is the leader in this over-the-top (OTT) media sector. In fact, they currently claim about 40% of the market. And their market share is likely to increase even as the pandemic ends.

And Roku is not settling for hosting other carriers content. The company is beginning to produce its own original content for its Roku channel. This will give users another option if they simply can’t find anything to watch on Netflix (NASDAQ:NFLX).

ROKU stock is up 232% in the last 12 months and is up 15% year to date.

About Roku

Roku, Inc engages in the provision of a streaming platform for television. It operates through the following business segments: Player and Platform. The Player segment consists of net sales of streaming media players and accessories through retailers and distributors, as well as directly to customers through the company's website.Read More 
Current Price
$153.20
Consensus Rating
Buy
Ratings Breakdown
20 Buy Ratings, 2 Hold Ratings, 4 Sell Ratings.
Consensus Price Target
$374.80 (144.6% Upside)




#7 - Alarm.com (NASDAQ:ALRM)

Alarm.com logo

The last stock on our list is perhaps the stock that illustrates the benefits of the IoT sector the best. Alarm.com (NASDAQ:ALRM) is seeking to become the leader in home security solutions. The company currently sells devices such as security cameras and locks. And it also provides the cloud software that connects them. And since users can engage with all of this through their smartphone, the company creates a complete closed-loop home security system.

And what investors love about Alarm.com’s business model is that it is a software-as-a-service (SaaS) company. That means it generates consistent and increasing revenue from subscriptions. The company is forecasting an annual growth rate in the sector of at least 24%. That should drive up the number of subscriptions. And as subscriptions rise so will the company’s cash position that is already allowing it to expand and invest in other technologies.

ALRM stock is up 86% in the last 12 months. However, the stock is down nearly 14% year-to-date which could create a great buying opportunity.

About Alarm.com

Alarm.com Holdings, Inc engages in the provision of wireless and web-enabled security system technology. The firm offers security, video monitoring, and energy management solutions. It operates through the Alarm.com and Other segments. The Alarm.com segment represents cloud-based platform for the connected home and related connected home solutions.Read More 
Current Price
$73.92
Consensus Rating
Buy
Ratings Breakdown
4 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$106.67 (44.3% Upside)



 

As you can see, IoT stocks cover a range of sectors and have many applications. “Connection” covers a lot of territories.

If I wanted to look at this from a contrarian angle, I might think that the world will be looking for more human interaction after the pandemic ends. I think that may very well be true, but it will still be facilitated by technology. And some ripple effects, such as the need for retailers to have an omnichannel selling model will stick around. Plus, the smart homes many individuals live in will sooner than we imagine turn into smart cities.

So I can’t get on board with IoT stocks being a post-pandemic loser. In fact, these stocks are likely to continue to gain steam as we look for ways to make our lives safer, more secure, and more streamlined. Investing in any of the stocks in this presentation would be a good place to start.

15 Energy Stocks Analysts Love the Most

There are more than 450 energy companies traded on public markets. Given the sheer number of pipeline companies, power plant operators, oil and gas production companies, and other energy stocks, it can be hard to identify which energy companies will outperform the market.

Fortunately, Wall Street's brightest minds have already done this for us. Every year, analysts issue approximately 8,000 distinct recommendations for energy companies. Analysts don't always get their "buy" ratings right, but it's worth taking a hard look when several analysts from different brokerages and research firms are giving "strong-buy" and "buy" ratings to the same energy stock.

This slide show lists the 15 energy companies with the highest average analyst recommendations from Wall Street's equities research analysts over the last 12 months.

View the "15 Energy Stocks Analysts Love the Most" Here.





Resources

Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau

© American Consumer News, LLC dba MarketBeat® 2010-2022. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information | RSS Feeds

© 2022 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer. Fundamental company data provided by Zacks Investment Research.