The best IOT stocks present an exciting investment opportunity. The internet has become a constant part of our lifestyle. We access the internet hundreds of times per day for information, communication, entertainment, and more.
That’s where the Internet of Things (IOT) comes into play. The Internet of Things is a broad concept. It essentially means that the items we use throughout the day are connected to the internet and can communicate with each other. It also means that these items have sensors and other smart technology to interact with the world around them.
Many leading technology companies are using IOT in their smart devices. Since IOT devices aren’t going anywhere, investing in the best IOT stocks on the market can be an excellent way to grow your portfolio.
Internet of Things stocks can provide products directly to consumers. They can also manufacture technology that is used in smart products.
The IOT market is expected to grow substantially in the future. Businesses in a wide range of industries are using IOT to streamline their operations.
Consumers are also using IOT products at home. These products help users keep their homes safe and energy efficient. IOT can also help consumers manage their health more effectively.
In this article, we’ll discuss some of the best IOT stocks to add to your portfolio.
Best IOT Stocks
Intel has been a key part of the technology industry for decades now. They make microprocessors and semiconductor chips. These are used in personal computers and other essential electronics.
Intel is an integral part of the IOT space for a number of reasons. First, their core technologies are essential for making new IOT devices. Second, they have developed secure WiFi connectivity solutions.
These WiFi connectivity solutions allow devices to communicate with each other efficiently and securely, which is key for IOT devices. They also offer fast 5G connectivity. This is important for video streaming, gaming, and more.
Intel has had some struggles this year. They have had to outsource their semiconductor chip production. For years, their rivals outsourced their production globally, while Intel kept theirs in the United States.
When Intel had to move their production overseas, investors worried about the future of the company. Intel is also facing stiff competition from other manufacturers. This resulted in a drop in Intel’s prices earlier in the year.
However, this price drop is actually a boon to investors. Intel is an integral part of the technologies we use every day, like personal computers. Because of this, it’s likely that the stock could return to its pre-2020 prices after they overcome these challenges – even as competition continues to increase.
Cisco makes a broad range of enterprise technology. Their products allow both people and devices to stay connected at work.
Cisco has a long history of making hardware that can handle internet-connected devices. They also make a software product called Cisco Kinetic. This program enables users to manage a range of IOT devices.
Cisco serves as a backbone for the IOT market. As smaller companies produce smart devices, Cisco’s value will continue to grow. This is because their devices rely on Cisco in order to work.
Like many other stocks, Cisco took a dip earlier this year when the market crashed. They are also currently in a period of transition. Cisco has acquired many smaller companies over the past few years. They are also moving their business model to focus more on software.
As a company, Cisco has been consistently dominant in the tech space. They’ve been profitable for a very long time. This has insulated them somewhat from this year’s economic challenges.
Cisco’s stock also pays healthy dividends, with a current yield of 3.66 percent. Their stock is at a low point right now, which means it could be a good time to buy.
Qualcomm stock is on its way up. Despite a dip in March, this tech company has bounced back. The stock is currently valued at its highest price ever.
Qualcomm is based in San Diego and provides a wide range of connectivity solutions. They support cellular and WiFi connectivity for smartphones, tablets, and other smart devices.
Qualcomm’s connectivity solutions make them one of the top stocks for internet of things. During the pandemic, they actually saw increased demand for their products.
This is because a huge percentage of the population transitioned to working from home. As everyone began to work from home, they relied on smart devices even more heavily to stay connected.
Additionally, Qualcomm’s products power smart home products, like smart speakers, thermostats, and much more. Consumers have come to rely on these solutions more often during the pandemic as they stayed at home.
Qualcomm also makes 5G chips. Many consumer-facing electronics brands are starting to implement 5G technology in their product. As this long-awaited technology finally makes its debut, Qualcomm could see even more demand. This is one of our top IOT stocks to buy this year.
NXP Semiconductors (NASDAQ:NXPI)
This Dutch company makes several products that have applications in the IOT space. These include sensors, interfaces, wireless connectivity tools, and security tools. These products are also used in the automotive industry.
As the name implies, NXP specializes in semiconductors. Semiconductor chips are made from materials that conduct electricity. These chips are used in many of the essential electronic devices that we rely on today.
NXP has seen strong revenues this past year. Even as other companies saw a loss in revenue, NXP continues to post strong numbers.
As life in China returns to pre-pandemic conditions, we can expect to see demand for both IOT and automotive products increase. This can keep pushing NXP’s value forward.
NXP’s products are particularly important to the development of IOT in cars. Demand for cars is relatively low right now, but is expected to return to normal as the global pandemic starts to slow down.
Because NXP is such an integral part in advancing car technology, they’re a good IOT stock to buy for the long term.
Analog Devices (NASDAQ:ADI)
Analog Devices is a United States-based company that makes signal processing technology as well as data and analytics solutions. Their technologies support the development of IOT products, both for consumers and enterprises.
The circuits that Analog Devices make are used in technologies across many different industries. Their circuits process sensory input, such as motion, light, and sound.
Despite this year’s challenges, Analog Devices has developed strong customer partnerships. As they continue to expand their customer base, their products will be used in more innovative IOT solutions.
Analog Devices is one of many tech companies positioned to make gains as demand for IOT solutions increases. The stock is already holding steady at pre-pandemic prices.
The Internet of Things goes beyond consumer and corporate applications. It’s also used in the healthcare industry. Dexcom is a company that is leveraging IOT technology in diabetes care.
Dexcom’s top product is their glucose monitoring system. This product uses sensors to automatically take glucose readings throughout the day.
It is also compatible with phones and tablets. Users can check their glucose levels directly from their phone. They’ll receive an alert if their glucose levels need attention.
For those who already have diabetes, Dexcom’s IOT technology makes glucose management much easier. Additionally, the rate of diabetes cases in the United States is steadily increasing.
This means there’s plenty of opportunity for Dexcom to grow. Even when the stock market crashed in March, Dexcom’s value only took a small dip.
They’ve seen significant market growth since then. Dexcom is also currently developing an updated version of their glucose monitoring system. This means there’s even more potential for investment growth.
Because of their unique offerings in the healthcare space, Dexcom is one of our best IOT stocks to buy right now.
Alarm.com is a company that provides cloud-based software for a range of security products. Their cloud solutions are integral to many security devices that are used in smart homes.
Alarm.com is contracted with many third-party security companies to provide cloud software. They currently provide interactive video monitoring as well as professional security.
Alarm.com also goes beyond security to offer a number of other products for smart homes and businesses. These include smart thermostats, personal emergency response systems, smart locks, and more.
This company’s IOT products use intuitive smartphone apps for management. They can also integrate with products like Google Home, Amazon Echo, and more.
Alarm.com’s products are very consumer-friendly. However, they can also work in a business setting. The home security market is only expected to grow from here, which bodes well for Alarm.com’s value.
Alarm.com is one of the most interesting IOT stocks to buy right now. They’ve established a foothold in the smart home market. As consumers want more control over their properties, they have room to continue growing.
Best IOT Stocks Under $10
Orion Energy Systems (NASDAQ:OESX)
Orion Energy Systems makes LED lighting solutions that use smart controls. They provide both indoor and outdoor lighting solutions, as well as maintenance.
Orion’s lighting systems are popular with enterprise customers. Their solutions are customizable, and the Orion team offers ongoing maintenance.
These lighting products use IOT technology to save energy. They use sensors to turn on and off automatically, and can integrate with other enterprise technologies. Orion’s products help consumers lower their energy bills and be more environmentally friendly.
Orion’s stock is currently very affordable. However, they’ve seen consistent growth this year. Companies around the world are looking to make their operations more eco-friendly. This means plenty of potential for Orion’s stock.
Arlo Technologies (NYSE:ARLO)
Arlo Technologies makes wireless security cameras that use IOT technology. This is one of the best affordable internet of things stocks right now.
Arlo’s products include security cameras, baby cameras, video doorbells, and more. They use WiFi to connect with a smartphone app.
Users will receive notifications for important security alerts. They can also watch the video feed in HD. Arlo uses sensors to detect people, animals, and objects for more accurate notifications.
During the second quarter, Arlo’s stock outperformed the broader software sector. Despite some ups and downs, their earnings have been strong this year.
2020 has seen unprecedented civil unrest throughout the world, despite lower crime rates overall. Arlo’s products can help consumers feel safer during these challenging times.
Hewlett Packard Enterprise Co. (NYSE:HPE)
This company was formed when the broader Hewlett Packard Company split in 2015. They offer enterprise technologies for companies. They are based in the United States, but offer global IOT solutions.
Unlike many other affordable IOT stocks, Hewlett Packard has a long company history. After a COVID-related drop in the market, HPE has been able to slowly rebound due to strong business operations.
This division of Hewlett Packard offers a range of enterprise solutions. These include software products, security solutions, and even investment tools. Their tools can make up the backbone of a company’s IOT operations.
HPE stock currently offers excellent value for money. Because they are part of the Hewlett Packard brand, they have a strong business model with room to grow.
Their wide range of products also makes them a good pick for investors. A diverse business model provides more financial security.
IOT Stocks: Final Thoughts
IOT stocks have hung in the balance during the pandemic. While there has been some loss of value, there’s also been plenty of potential for growth.
As our world becomes more interconnected, IOT technologies are going to become more valuable. Companies that make these smart tools are likely to see long term growth, even as the market fluctuates right now.
Buying internet of things stock makes sense right now. Now more than ever, we’re relying on technology to communicate with each other. IOT tools have the potential to increase productivity in many different industries, including healthcare, manufacturing, and transportation.
Products that leverage IOT devices also have more potential to connect with consumers. We’re all looking to increase efficiency in our daily lives. Consumers are likely to pay more for smart products that can integrate together.