The smart home stock index lost 32% of its value pretty suddenly in 2022 due in large part to the stock market’s poor performance.
However, despite the fact that the smart home industry fell, there is still a ton of demand for the tech, and as such, the industry may bounce back and produce solid stock price gains in 2023.
That said, here’s a look at some of the best smart home technology stocks you can buy now.
Best Smart Home Technology Stocks to Track
Apple Inc (NASDAQ: AAPL)
Apple Inc. is a giant multinational company based in California. It is one of the largest companies in the tech industry, having accumulated nearly $394 billion in revenue in 2022.
While the company is best known for its electronic products, such as the iPhone and Mac computers, it quickly expanded into the smart home tech sector.
As a company focusing on user-friendly products, it was no surprise when it announced its entry into the smart home technology market with its launch of “HomeKit.”
This technology lets users control all smart home accessories from a singular interface.
Apple has introduced a variety of smart home accessories since the launch of HomeKit in 2014, establishing its dominance in the smart home technology market.
With a market cap exceeding $2 trillion and revenue increases estimated at 5.9%, the company represents a great way to gain exposure to the smart home market.
The company’s stocks trade at roughly $147 as of February 2023, with an annual dividend rate of $0.92. It also reports a yield of 0.62% to stockholders annually.
Amazon Inc (NASDAQ: AMZN)
Amazon is a multinational technology company and one of today’s most influential corporations.
Founded in 1994, it is most popularly known for its e-commerce platform, Amazon.
The company continues to experience significant growth over the years by constantly diversifying itself until it breaches new frontiers.
One of these is the smart home technology market.
The company introduced Amazon Echo, making it the first in line in its range of smart home tech devices.
The voice-controlled smart speaker quickly became a smart home hub, forever changing the smart technology market.
Amazon also acquired Ring in 2018, a startup specializing in smart camera-equipped doorbells.
This further established the dominance of the company in the smart home tech market.
With a market cap estimated at a whopping $965 billion and an estimated 9.4% growth in the coming year, Amazon is a great blue chip stock in the smart home tech field.
Alphabet (NASDAQ: GOOGL)
While it is most popularly known for the search engine Google, Alphabet also has a range of businesses that exist under its umbrella. One of which currently operates within the smart home market.
It’s called Google Nest and focuses on actualizing the parent company’s smart home interests.
Its smart home products are constantly expanding, with products like smart thermostats and home security devices ranging from intruder detection systems to smart doorbells.
Its latest release, Matter, is an app to connect all Google Nest smart home tech.
Considering the sheer scale of its product offerings, Google Nest is one of the best smart home companies in the space.
Investing in Alphabet’s stock could be a great gateway to tap into the company’s growth.
Cisco (NASDAQ: CSCO)
Cisco is a diverse digital and technological corporation and one of the world’s largest technological companies.
Founded in 1884 in San Francisco, the technology company has been developing and manufacturing high-tech products and providing similar services for nearly a century.
While the multinational company focuses mainly on manufacturing high-technology services and products, it earns its spot on this list thanks to its smart home building and design.
Cisco goes beyond selling smart devices, branching out to smart building.
This vision intends to automate different activities in the home, ranging from sensors to lightning, all encompassed in one infrastructure.
The company has an impressive market cap of $198.32 billion, with revenue reaching $53 billion in its 2022 fiscal year alone.
The company’s stock price is $48 as of February 2023, reporting an annual yield of 3.22% and a dividend rate of $1.56.
Intel (NASDAQ: INTC)
Intel is a leading technology company producing various hardware and software products.
The corporation dominates the CPU market, producing a range of microprocessors and chipsets that transform the technological world.
It has also breached the smart home tech field by developing cutting-edge products to enable intelligent computing.
One of which is Edge AI, a software developed to leverage artificial intelligence leading to smarter connected homes.
When used to power smart devices, its computations will improve data processing immensely.
With a market cap exceeding $103 billion, it’s no surprise that the company’s recent dividend cut has done little to dispel existing investors.
The company’s shares trade for roughly $25 as of February 2023, offering shareholders an annual yield of 2.01% with a dividend rate of $0.50.
Honeywell International (NASDAQ: HON)
Honeywell International is a multinational company that provides manufacturing and technical services to its customers around the globe.
Founded in 1906 and established in Indiana, the company operates in multiple areas: performance technologies and materials, aerospace, safety solutions, and building technologies.
The company offers a variety of smart home technology devices to the tech market, such as smart thermostats, home security systems, and many other smart home tech products.
With a market cap valued at $127 billion, Honeywell International offers stocks currently trading at roughly $192.
In 2022, the company boasted a 3% increase in its share price in an otherwise horrible stock market.
In 2022, the company reported revenue of $35 billion.
While this is impressive, the company’s revenue growth is expected to increase slightly in the coming year, with estimations showing a rise of only 3.12%.
However, industrial stocks have declined due to recent inflation, and Honeywell’s stock valuation has continued to wane.
Nevertheless, while we wait for stock prices to rise, investors could stand a chance to earn dividends.
HON offers an annual payout of $4.12 with a dividend yield of 2.15%,
Vivint (NYSE: VVNT)
Vivint is a smart home company founded in 1999. The company started by selling and installing security systems but soon transformed into merging technology and security.
The company dominates the smart home sphere with a focus on smarter security.
With products like smart locks and security cameras, Vivint quickly became a major player in the smart home technology market.
The company’s market cap translates to $2 billion, and in 2022, it accrued revenue of more than $1 billion.
Estimations made on Vivint’s earnings show growth, rising up to 13.73%
The company’s stock price was trading at $11 as of February 2023.
Alarm Holdings (NASDAQ: ALRM)
Alarm Holdings is a tech company based in Virginia.
Founded in 2000, the company started off its operations by providing cloud-based services, security solutions, and monitoring services to its clients around the globe.
It has since made a foray into the smart home space with home security software.
In 2016, Alarm Holdings increased its reach by enabling its products to be accessible by voice control, including Amazon Alexa and Google Assistant.
Despite a market cap exceeding $2 billion, the company continues to see a constant dip in the price of its shares.
This could entice potential investors as it is an opportunity to buy the dip.
The company shows some potential, with revenue predictions for the coming year estimated at 12.5%.
As of February, ALRM is roughly trading at $50 on NASDAQ.
Are Smart Home Technology Stocks a Good Investment?
Smart homes are equipped with home automation systems that allow homeowners to control the lighting, security, temperature, and entertainment systems while also managing their energy consumption.
The high degree of convenience that comes with living in a smart home has driven smart home adoption globally.
So much so the number of active households living in smart homes is expected to amount to 93.6m users by 2027.
This is due to the rising consumer awareness of the benefits of smart home tech and the availability of more affordable smart home devices.
Thus, considering the growth the smart home market is expected to undergo in the coming years, it’s fair to say that it could be worth investing in smart home stocks.
FAQs
What Smart Home Companies Have Stocks?
There are many smart home companies in the market, but not all of them are publicly traded. Luckily, if you’re looking to gain exposure to the smart home tech space, there are still some stocks you can pick up, such as Alphabet, Alarm Holdings, and Cisco.
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