Buy These 4 Stocks As Smart-Home Space Continues To Grow
Zacks Investment Research | Dec 20, 2019 07:40AM ET
Internet of Things’ (IoT) gadgets like smart speakers, smart lighting and security or all-in-one gadgets like Google Home Hub or Apple (NASDAQ:AAPL) HomeKit are now enjoying huge demand.
This has in turn increased the requirement for more research and development in the IoT space. This certainly calls for investing in stocks involved in IoT.
Why Smart Home?
Smart home device providers are delivering what they have promised from smart thermostats to lighting systems, security systems, speakers, home assistants and much more. These devices characterize a consumer-facing aspect of highly hyped IoT, which can connect several devices at one time, making life easier.
Moreover, convenience is a major factor that boosts this space, and people are opting for energy-efficient devices and ways to secure their homes easily, and smart devices serves the purpose.
Evidently, per a CNBC report, Apple, Amazon (NASDAQ:AMZN) and Google are working on Connected Home over IP Project that plans to develop and promote smart home devices, especially physical safety devices. This groups’ primary focus rest on smoke alarms, door locks, smart plugs, security systems and heating or air conditioning controls.
According to Statista, the global smart home market is projected to reach more than $53 billion by 2022. Further, Acumen Researching and Consulting projects that with rising popularity, smart homes and buildings market growth will be 18% this year.
Mergers Boosting Smart Homes Device Providers
What’s more, startups popping across the globe have been a boon for the smart home space. In fact, acquisitions and mergers are providing ample fund for research and development.
Amazon's Alexa, a virtual assistant has been in hype for long now but the tech giant wants to be in every corner of the house. This April, the giant paid $97 million to acquire Eero in a fire-sale deal and previously paid $1 billion to acquire Ring, a doorbell-camera startup. Amazon had also acquired Blink, a smart camera maker in 2017.
Google parent Alphabet (NASDAQ:GOOGL) has also invested heavily in the smart-home space. Google had acquired Nest for $3.2 billion and the acquisition paid off well. Nest recently launched new products such as temperature sensors, video doorbell and outdoor smart camera, which is the major reason behind the acquisitions’ success.
4 Smart-Homes Stocks to Buy
What keeps the competition in this market robust is that most smart devices work with voice assistants and not all are compatible. Hence Apple’s Homekit can be used only with the help of Siri.
Given the development in the IoT space and the rising demand for smart home devices we have shortlisted four stocks that carries a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Sony Corporation (NYSE:SNE) designs, develops, produces, and sells electronic equipment, instruments, and devices. Sony's suite of voice assistant helps compatible products works together seamlessly. The company’s expected earnings growth rate for 2020 is 14.8% compared with the Zacks Zacks Investment Research
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