Top Smart-Home Stocks to Buy in 2019
Smart homes and buildings are becoming increasingly popular with a projected market growth of 18% according to Acumen Researching and Consulting. The internet of things, and IFTTT (If this then that) has allowed for individuals to create systems that works together with minimal human intervention.
Automation and connected smart appliances have seen a huge rise in demand in recent years. Amazon recently acquired Eero and previously paid $1 billion to acquire Ring, a doorbell-camera startup. It had acquired Blink, a smart camera maker in 2017.
Google also invested heavily in the smart-home game a few years ago when it acquired Nest for 3.2 billion. Nest was quiet for a few years after its acquisition by Google but recently launched new temperature sensors, a video doorbell and an outdoor smart camera.
Smart lights, security, entertainment systems, and temperature control are the principle smart devices in demand. These products are surely to grow as we become more invested in energy-saving and healthy lifestyles.
Most of these smart devices work with voice assistants, but read carefully as not all are compatible, depending on your brand. Apple’s Homekit is an example of a software framework that lets you use a smart device with Siri.
Nest smart-home products at B&H
Here are the top companies developing smart homes products…
💻 Technology
Microsoft (MSFT-Q)
Cortana, the voice assistant, can be used to control compatible smart devices. The IFTTT chains helps you automate actions.
Opinion about MSFT: They reported. He's disappointed they didn't have more to say. Also, they're a software company.
Stockchase Sony Corp. ADR (SNE-N)
They offer a suite of voice assistant enabled smart products that help automate the home. You can even control your Sony TV through Google Home.
Opinion about SNE: Going through a revolution. Trying to reposition as a major global content provider, a la Disney. To hold this stock, you really…
Stockchase Apple (AAPL-Q)
Homekit, along with the Home app, is the company’s smart home system used as a platform for iOS user. The platform brings multiple devices together and coordinates their actions.
Opinion about AAPL: Had a very good quarter. Chinese sales are rebounding, up 28%, services hit a new record, gross margins at 49.3% and a $100…
Stockchase Amazon.com (AMZN-Q)
A leader in e-commerce and they sell smart home solutions that also works with their voice assistant, Alexa. They help you get what you need to turn your home smart, and a way to control everything.
Opinion about AMZN: Trades ~17x PE for 2028 for 20% growth. Very reasonable PEG ratio. Concern is that spending is in overdrive but returns won't be…
Stockchase Alphabet Inc. (A) (GOOGL-Q)
They acquired Nest and is a big player in connected home devices. Many devices connect through their Google Home platform.
Opinion about GOOG: Thinks it'll be a winner. The Mag 7's are tired, but you need to have some exposure from a portfolio diversification perspective.
Stockchase Some stocks not on Stockchase are also worth mentioning : Alarm.com NASDAQ: ALRM, Control4 NASDAQ: CTRL and Sonos NASDAQ: SONO are among many smart-home stocks you should watch. Other companies are also involved and benefit from the home automation rise in demand even if they don’t develop consumer products themselves, here are more smart-home related stocks :
Canon Inc. (CAJ-N)
Smart all-in-one printers are the mainstay of a smart-office. Canon offers multiple solutions for big and small sized companies and help automate the workplace.
Opinion about CAJ: A great company. 16 times earnings. Well run, world leading company. Expert opinions on Canon Inc. (CAJ) — buy, sell, or hold…
Stockchase Amdocs (DOX-Q)
A supplier of billing and back-office support for telecommunication and cable companies. They offer real-time intelligence capabilities for contextualized customer engagement.
Opinion about DOX: Expects a lot of growth Expert opinions on Amdocs (DOX) — buy, sell, or hold ratings from Canadian and US analysts on Stockchase.
Stockchase Logitech International SA (LOGI-Q)
Harmony Hub takes all your devices and lets you control them with your smartphone. They are working on creating a universal controller.
Opinion about LOGI: Play on EM. Computer mice, trackballs, and controllers. Potential is driven by cloud, PC Gameplay, and explosion in content…
Stockchase Marvell Technology Group (MRVL-Q)
They produce storage, communications, and consumer semiconductors. Their digital semiconductors for consumer communications is used in smart home technology.
Opinion about MRVL: Interesting company. Big issue on semi demand is really the Chip Act, how it applies to China, and what it does to demand for…
Stockchase Silicon Laboratories Inc (SLAB-Q)
A semiconductor producer that is used widely in cell-phones and smart devices.
Opinion about SLAB: (Was a top pick on Mar 11. Up 1%.) Still likes. Don't buy at these prices. Wait for pull backs.
Stockchase Intel (INTC-Q)
They create chips that power the smart home devices. They have good technical support, and could break out, but semiconductors have done poorly recently.
Opinion about INTC: It's too late to enter this. The money has been made during that gigantic move. Their problems aren't over yet, given their balance sheet.
Stockchase Qualcomm (QCOM-Q)
A strong player in the IoT space, offering connectivity and machine intelligence to smart home technology. They offer security and automation technology to consumers.
Opinion about QCOM: One of the major chip maker names to consider for your portfolio. Adds value to the supply chain.
Stockchase AT&T (T-N)
They’re focusing on home security and automation systems to protect your home and family.
Opinion about T: Will they cut their dividend? The last time, the company told him they wouldn't cut their dividend...then they cut it. So, he…
Stockchase AMERICA MOVIL, S.A.B. DE C.V. (AMX-N)
They are working on 5G technology and are working to commercialise smart products to tap into the IoT universe.
Opinion about AMX: Gaining continus scale. Penetration is still going very strongly, as well as having several ventures in Brazil.
Stockchase Home Depot (HD-N)
You can get everything you need to connect your home. They’ve profited from the DIY boom and smart homes could be the next big thing.
Opinion about HD: Was down 1% today. It needs deeper interest rate cuts than 25 points as announced today to get this stock rallying. The stock will…
Stockchase Best Buy Company Inc (BBY-N)
A name synonymous with consumer technology. They offer a wide variety of smart homes devices, and smart home systems.
Opinion about BBY: Stockchase Research Editor: Michael O'Reilly Despite doom and gloom with inflation and a slow down in consumer spending, recently…
Stockchase Office Depot (ODP-Q)
They offer a smart home and office installation service that installs and connects Google and Nest products to you building.
Opinion about ODP: Fairly cheap. Has excellent upside potential. Expert opinions on Office Depot (ODP) — buy, sell, or hold ratings from Canadian and…
Stockchase Audiovox Corp. (VOXX-Q)
A custom home automation and consumer electronics company. They are working on connecting residential and commercial properties.
Opinion about VOXX: No debt and $160 million in cash, a little over $7 per share. Chairman owns 20%. Not widely followed.
Stockchase Comcast Corp (CMCSA-Q)
Its Xfinity brand has driven their smart home products. They specialize in smart voice-drive TV experiences. They also have partnerships with home security and smart lock companies.
Opinion about CMCSA: Valuation down to 11x earnings. He expects a strong quarter with good cash flow from their cable subscriptions.
Stockchase ABB Ltd. (ABB-N)
A Swedish-Swiss multinational that develops robotics, power, and automation technology. They are working on building smart grids. These grids are adaptive and responsive, and many current infrastructure needs replacing. These smart grids have a big potential when these infrastructures are redone.
Opinion about ABBNY: This has been a very interesting story in the last couple of years. Went down to around $15 and then back up. Has now fallen…
Stockchase Honeywell International (HON-N)
They have consumer smart home solutions, including thermostats, and security systems. It has a good management team and they have good branding.
Opinion about HON: Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research When Honeywell splits into three companies, owners of…
Stockchase General Electric (GE-N)
They have smart outlets and security systems. However, it’s been beaten down a lot, and analysts are wary. They are not cash flow positive, and the business is trying to sell off assets trying to survive.
Opinion about GE: Tough to turn around such a large ship. Rallied from very low levels. Take advantage of that, sell, and deploy funds elsewhere.
Stockchase Johnson Controls (JCI-N)
An automotive batteries and electronics, and HVAC equipment producer. They also have their building automation system. The system helps keep occupants safe and productive.
Opinion about JCI: Auto parts manufacturer, primarily seats and electric motors. Had a big selloff last year but has started to recover as North…
Stockchase Eaton Corp. (ETN-N)
Provides engineering equipment to different companies. They are a key player in the global human machine interface (HMI) race. HMI is a growing market especially due to the rising demand for lower expenses.
Opinion about ETN: She bought more. They have 30% market share in their electrical business, which holds exciting growth. So many drivers: utilities…
Stockchase Ametek (AME-N)
They manufacture electronic instruments and electromechanical devices. They make monitors for many industries, including pharma and oil. A leader in highly engineered electrical connectors.
Opinion about AME: Likes industrials. He used to have a decent weighting, but with the recent run-up in industrial companies in the US, he sold a…
Stockchase Anixter International (AXE-N)
A communications and security products company. They offer a full-line solutions. A leader in helping businesses and communities build reliable systems.
Opinion about AXE: This is a feeder into the global industrial growth. They make and are distributors of communication products, wire and cable…
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