The Internet of Things (IoT) is one of the fastest-growing industries in the entire world. In this article, we will go over the hottest IoT stocks to buy in the market today. The IoT represents the increasing level of connectedness between computers, home appliances, smartphones, and various other “smart” systems. By some estimates, the IoT industry will be worth $1.2 trillion by 2022 and $14.2 trillion by 2030.
Because the IoT industry has been growing at such an impressive rate, many investors are hoping to get involved while the industry at large is still relatively undervalued. However, recognizing the potential growth of IoT is one thing. The next step will be recognizing which stocks are most likely to eventually increase in value.
When compared to industries that have been around for longer, most IoT stocks have an above-average level of volatility. To experienced traders, this simply means that there will be more opportunities to earn a profit with each passing day. Paying attention to key technical indicators can help you enter into and out of the market with a greater degree of financial security.
If you are wondering which IoT stocks are most likely to increase in value, you are certainly not alone. In this article, we will discuss ten of the hottest IoT stocks for you to monitor in 2019 and beyond.
- Global X Internet of Things ETF (NASDAQ: SNSR)
In a new and unpredictable market, such as the market for IoT stocks, investing in exchange-traded funds (ETFs) can help reduce the risk of holding a specific position. The Global X Internet of Things ETF allows you to hold a stake in many different IoT firms without the need to ever put all your eggs in one basket. As the industry itself grows throughout the 2020s, so will the value of corresponding ETFs.
- Honeywell International (NYSE: HON)
Listed on the world’s largest stock exchange (NYSE) and a namesake among industrial titans, Honeywell has proven itself to be one of the most reliable companies in the American economy. Between December 21, 2018 and June 26, 2019, Honeywell’s stock rose from $129 to $173—yielding an impressive 34 percent return. Though the company is arguably in its mature phase, it is actively exploring ways to apply IoT technology on an industrial scale.
- Qualcomm (NASDAQ: QCOM)
Qualcomm is a diversified company that has established itself as one of the world’s leading chip producers. The company has developed lasting partnerships with many of today’s leading tech companies, including AT&T, Verizon, Alphabet (Google), Microsoft, and various others. As the demand for state-of-the-art chips increases, expect Qualcomm’s stock to rise.
Thus far, Verizon has positioned itself as one of the leading forces behind the 5G revolution. Once the “fifth generation” of network technology actually arrives, both downloading and uploading processes are expected to become as many as one thousand times more efficient. In addition to its role in the development of 5G, Verizon also offers the investment security that only a listing on the Dow Jones Index can provide.
It is yet to be seen whether Verizon or AT&T will be the first to fully offer 5G tech, but regardless, both companies have positioned themselves to increase in value. Furthermore, AT&T has been diversifying and investing in media, entertainment, and various other industries. As these industries continue to integrate with one another, expect America’s oldest telecom brand to increase its already high value ($193.9 total equity as of 2018).
- Alphabet (NASDAQ: GOOGL)
Anyone who has been following Google’s parent company Alphabet for long has likely been incredibly impressed with its ability to quickly grow. Between 2015 and 2018, the company more than doubled in value and currently has a market cap of $750 billion. Alphabet has been aggressively making moves, producing at-home devices and creating an increasingly connected platform, which, in turn, positions it among the top companies in the industry.
- Sierra Wireless (NASDAQ: SWIR)
Based out of Canada, Sierra Wireless has been establishing itself as an active competitor in nearly every dimension of the greater IoT industry. The company plays an active role in the production of tablets, automotive OEMs, security services, utilities, and various other products. In fact, Sierra once ranked as the most embedded IoT company for six years in a row (2012-2017).
- Marvell Technology Group Ltd. (NASDAQ: MRVL)
Marvell is another leading provider of chips used in 5G technology and other essential IoT components. This past April, the company was able to increase in value by more than 30 percent, something that is almost unheard of for a company of Marvell’s maturity. Though the company’s shares have seen a mild spike in volatility, this simply means there will be more opportunities for profit.
- Apple (NASDAQ: AAPL)
In 2018, Apple wowed investors around the world by breaking the long-coveted trillion-dollar mark. Though the company is no longer at its peak value, it recognizes that the future is in IoT. Thus far in 2019, the company has experienced a dramatic amount of restructuring, allowing it to have considerably more flexibility in the future.
- Amazon (NASDAQ: AMZN)
When Amazon first introduced “Alexa” to the public, they were well-aware they were doing much more than debuting a witty box that answers people’s questions. They knew they were transforming the IoT industry as a whole. While Amazon has come under fire due to practices perceived as anti-competitive, its near trillion-dollar market cap (matched only by Apple) has continued to attract the attention of investors around the world.
The IoT market is expected to reach $922 billion by 2025. Remember, investments do carry risk, and it’s important to properly position yourself to be risk-averse. With the right trading strategies in place, you can capitalize on the growth of this industry and avoid bad trades.