We go through 10 smart home technology stocks to purchase right now in this post.
People and businesses are turning to smart home developers to provide technology and amenities that encourage ease and automation as customers want cutting-edge designs, efficiency, and innovation in their homes and places of work. The market for smart homes was estimated to be worth $79.13 billion in 2020, and it is anticipated to increase to $313.95 billion in 2026 at a CAGR of 25.3% from 2021 to 2026.
Global demand for and implementation of smart home technologies are projected to expand due to the ongoing rise in internet users. The market for smart homes is growing because to falling prices for smart sensors, increased IoT usage, rising consumer expenditure, and rising demand for energy efficiency.
Despite technological developments, there are still a number of problems that customers must deal with while using smart home solutions. The smart home industry will develop rapidly in the future because houses can be seamlessly connected, but the major companies in the market have already added a ton of value for consumers.
Resideo Technologies, Inc. (NYSE:REZI), Honeywell International Inc. (NASDAQ:HON), and Apple Inc. (NASDAQ:AAPL) are a few of the most well-known smart home technology stocks. Other important ones are covered in more depth below.
We chose smart home technology companies with growth potential, favorable sentiment among hedge funds, and generally favorable analyst evaluations.
The fourth quarter of 2021 data from 924 top-tier hedge funds tracked by Insider Monkey was utilized to determine how the hedge funds felt about the holdings.
Stocks in smart home technology to buy right now:
Amazon.com, Inc. (NASDAQ:AMZN)
Holders of Hedge Funds: 279
Using Alexa, Amazon.com, Inc.’s (NASDAQ:AMZN) intelligent personal assistant service, the Echo smart speakers can command a number of smart appliances and serve as a center for home automation.
Amazon.com, Inc. (NASDAQ:AMZN) released its fourth quarter results on February 3. The company reported earnings per share of $27.75, which was $24.09 higher than expected. The $137.41 billion in sales increased by 9.44 percent on a yearly basis.
On February 18, Ivan Feinseth, a Tigress Financial analyst, increased the price target for Amazon.com, Inc. (NASDAQ:AMZN) to $4,655 from $4,460 while maintaining a Buy rating for the stock. Amazon.com, Inc. (NASDAQ:AMZN), which reported “record results” thanks to a successful Christmas quarter, allayed concerns that the corporation was about to slow down. In 2022, the analyst expects Amazon.com, Inc. (NASDAQ:AMZN) will continue to benefit from “powerful growth drivers” such the expansion of AWS cloud services and Amazon Prime.com.
Amazon.com, Inc. (NASDAQ:AMZN) had positive hedge fund sentiment in Q4 2021 as seen by the rise from 242 to 279 of top funds’ long holdings in the business. One of the major owners in Amazon.com, Inc. (NASDAQ:AMZN) is Fisher Asset Management, which has a $7.2 billion holding in the business.
In its Q4 2021 investor letter, Polen Focus Growth made the following comments on Amazon.com, Inc. (NASDAQ:AMZN):
“Amazon has fallen behind during the previous 15 months. In order to differentiate itself from the competition and meet increased demand, the firm must now surpass the substantial revenue windfall it earned in 2020 while simultaneously managing supply chain interruptions, wage inflation, and investments. We believe that these headwinds are passing and just temporary. These short-term expenditures and inefficiencies are increasing the poor (actually negative) margins of Amazon’s first-party ecommerce operation. However, over time, margins should increase significantly due to the massive, rapidly expanding, higher-margin industries like advertising, AWS, and Amazon Prime.
Our assessment of Amazon’s prospects for long-term growth and margin expansion has not altered, and the value has just gotten more alluring. According to our analysis, Amazon has the potential to provide among the greatest returns across our Focus Growth portfolio if our predictions for free cash flow growth over the next five years come true. Just after Alphabet, it is now our second-largest position.
Alphabet Inc. (NASDAQ:GOOG)
Holders of Hedge Funds: 158
Google Nest, a division of Alphabet Inc. (NASDAQ:GOOG), offers a variety of smart home products, such as smart speakers, streaming devices, smoke detectors, and security systems.
Alphabet Inc. (NASDAQ:GOOG), which released its Q4 earnings report on February 1, reported EPS of $30.69, above projections by $3.41. Revenue increased 32.39 percent year over year to $75.33 billion during the year, exceeding projections by $3.50 billion.
In Q4 2021, top hedge funds have sizable holdings in Alphabet Inc. (NASDAQ:GOOG). 158 hedge funds were positive on Alphabet Inc. (NASDAQ:GOOG), up from 156 funds in the previous quarter, according to Insider Monkey’s fourth quarter database. One of the largest shareholders in Alphabet Inc. (NASDAQ:GOOG) was TCI Fund Management, which owned 2.95 million shares worth $8.5 billion.
In its investor letter for Q4 2021, Polen Focus Growth has the following to say about Alphabet Inc. (NASDAQ:GOOG):
“Alphabet was among the top performers for the whole year. The business of Alphabet is still growing at what we consider to be a healthy rate. The company’s third-quarter sales increased by 40% year over year, and it expects to generate an additional $70 billion in revenue in 2021.
Apple Inc. (NASDAQ:AAPL)
Holders of hedge funds: 134
The main smart house technological advancement made by Apple Inc. (NASDAQ:AAPL) is HomeKit, which enables customers to operate smart home products using Apple devices. HomeKit enables the control and integration of several smart home gadgets via a communication protocol.
Apple Inc. (NASDAQ:AAPL) released its Q4 financial results on January 27, exceeding predictions by $0.21 and reporting profits per share of $2.10. Additionally, by $5.41 billion, the $123.95 billion in sales exceeded consensus expectations.
On January 27, Apple Inc. (NASDAQ:AAPL) announced a quarterly dividend of $0.22 per share, the same as before. Shareholders who had a record on February 7 received the dividend on February 10 after the record date.
Following the release of the company’s “record” Q1 earnings, Tigress Financial analyst Ivan Feinseth increased the price target for Apple Inc. (NASDAQ:AAPL) to $210 from $198 and kept a Strong Buy rating on the shares. The analyst notes that his target would potentially represent a return of close to 25% from current levels and that he believes there is still more upside in the shares owing to robust product demand, new product releases, and rising services revenue.
In Q4 2021, Berkshire Hathaway has the largest position in Apple Inc. (NASDAQ:AAPL), with more than 887 million shares worth $157.5 million. Hedge fund sentiment grew overall in the fourth quarter as 134 funds maintained long positions in Apple Inc. (NASDAQ:AAPL), up from 120 funds a quarter earlier.
In its Q4 2021 investor letter, Alger Spectra Fund makes the following comments regarding Apple Inc. (NASDAQ:AAPL):
“Apple is a top provider of technology in the fields of computing, communications, and services. The company’s distinctive intellectual property and competitive advantage is the iOS operating system. With the help of this software, businesses and customers are more closely engaged, which encourages consumers to buy more high-margin services like music, apps, and Apple Pay. On the strength of significant margin realization caused by a sales mix of more profitable services, Apple’s quarterly earnings beat street expectations. Given the much increased freight costs and supply issues that delayed the realization of around $6 billion in sales, the margin strength was even more noteworthy.
Honeywell Worldwide Inc. (NASDAQ:HON)
51 investors in hedge funds
The American global company Honeywell International Inc. (NASDAQ:HON) offers heating, cooling, security, lighting, and intelligent products through its Home and Building Control division, which is specifically focused on smart home technologies. On February 3, Honeywell International Inc. (NASDAQ:HON) released its Q4 financial results, with profits per share of $2.09, $0.01 higher than expected.
After Honeywell International Inc. (NASDAQ:HONQ4 )’s earnings and below-consensus guidance, UBS analyst Markus Mittermaier reduced his price target for the stock to $220 from $237 on February 15. He maintained a Buy rating on the shares though and sees potential upside from current levels.
On February 11, Honeywell International Inc. (NASDAQ:HON) announced a quarterly dividend of $0.98 per share, the same as before. To stockholders with records as of February 25, the dividend will be paid on March 11.
The corporate management said on February 3 that Honeywell International Inc. (NASDAQ:HON) has excellent initiatives that would bring in money for investors despite a difficult supply chain condition.
51 hedge funds, up from 45 firms the quarter before, were positive on Honeywell International Inc. (NASDAQ:HON) in Q4 2021, according to the Insider Monkey database. The largest shareholder of Honeywell International Inc. (NASDAQ:HON), with 1.6 million shares valued at $342.4 million, was D E Shaw.
In its investor letter for Q1 2021, ClearBridge Investments has the following to say about Honeywell International Inc. (NASDAQ:HON):
“The quality bias and valuation discipline of the portfolio have historically produced impressive returns, often with excellent relative performance in more difficult conditions, as it did through the first three quarters of 2020. In contrast, the same quality bias tends to make the Strategy’s relative performance environment more difficult during times of rapid economic growth, which often favors equities that are more closely tied to commodities or have lesser quality. This has been the case during the most recent quarter as well as the stimulus- and vaccine-driven boom that occurred late last year. Industrials were among the sectors that underperformed in the quarter, and Honeywell underperformed as well, despite having historically produced high returns over long periods of time.
Synaptics Inc. (NASDAQ:SYNA)
Holders of Hedge Funds: 23
The California-based corporation Synaptics Incorporated (NASDAQ:SYNA) creates human interface software for automobiles and smart home gadgets. The largest shareholder in Synaptics Incorporated (NASDAQ:SYNA) was Fisher Asset Management, which owned more than 1 million shares worth $311.1 million.
Synaptics Incorporated (NASDAQ:SYNA) released its Q4 earnings on February 3. The firm beat projections by $0.14 and reported profits per share of $3.26. Revenue for the time period increased by 17.59% year over year to $420.50 million, exceeding expectations by $716,670. Shares of Synaptics Incorporated (NASDAQ:SYNA) increased by 8% after reporting record gross margins for the fourth quarter.
On February 4, Rajvindra Gill, a Needham analyst, increased the price objective on Synaptics Incorporated’s (NASDAQ:SYNA) shares to $340 from $320 while maintaining a Buy rating. The analyst highlights the firm’s “strong” Q4 beat and raised outlook while also pointing out that Synaptics Incorporated’s (NASDAQ:SYNA) range of smart home accessories is the widest and most comprehensive in the sector.
Similar to Apple Inc., Resideo Technologies Inc., Honeywell International Inc., and Resideo Technologies Inc. (NYSE:REZI), Synaptics Incorporated (NASDAQ:SYNA) offers a desirable entry point into the market for smart homes (NASDAQ:AAPL).
Recipro Technologies, Inc. (Trading on NYSE as REZI)
Holders of Hedge Funds: 24
The American business Resideo Technologies, Inc. (NYSE:REZI) creates smart home and software solutions, including security systems, home automation, and fire detection equipment. Resideo Technologies, Inc. (NYSE:REZI) posted a GAAP EPS of $0.45 on February 15 that was $0.08 more than expected.
On February 7, Resideo Technologies (NYSE:REZI) and Newell Brands Inc. (NASDAQ:NWL) reached an agreement to buy First Alert, a manufacturer of home security devices, for $593 million in all cash. Similar to this, Resideo Technologies (NYSE:REZI) bought Arrow Wire & Cable, a prominent regional distributor of data communications, networking, and security solutions, on February 15 from a Chinese privately held firm.
In its investor letter for the first quarter of 2021, ClearBridge Investments made the following comments on Resideo Technologies, Inc. (NYSE:REZI):
“Recenter additions” New management teams at Resideo Technologies, a distributor of goods for the home that increase comfort, safety, and energy efficiency, are better at allocating money, streamlining production, and enhancing procurement. The business has a great chance to increase returns, which ought to boost earnings and multiples.
Vacasa, Inc. (NASDAQ:VCSA)
Holders of Hedge Funds: 17
An American firm called Vacasa, Inc. (NASDAQ:VCSA) rents out vacation homes and is utilizing smart home technology in its 35,000 properties to make sure that guests have a nice stay and are considerate neighbors. Keyless access and decibel monitoring are two examples of these intelligent automation solutions.
On February 16, JPMorgan analyst Doug Anmuth began following Vacasa, Inc. (NASDAQ:VCSA) and gave the company an Overweight rating and a $10 price target. Anmuth informs investors in a positive note that Vacasa, Inc. (NASDAQ:VCSA) is the largest end-to-end vacation rental management platform with a focus on helping homeowners. He thinks Vacasa, Inc. (NASDAQ:VCSA) benefited from a high demand for alternative lodging during the recovery because it “solidly executed” supply procurement, local operations, and distribution before and throughout the epidemic. The analyst predicts that Vacasa, Inc. (NASDAQ:VCSA) will continue to work closely with Expedia Group, Booking Holdings, and Airbnb as a strategic partner.
17 hedge funds were positive on Vacasa, Inc. (NASDAQ:VCSA), according to Insider Monkey’s fourth quarter database, with total positions of over $765 million.
SmartRent, Inc. 8. (NYSE:SMRT)
Holders of Hedge Funds: 17
An organization called SmartRent, Inc. (NYSE:SMRT) sells hardware and software for home automation solutions, serving both homeowners and house builders with its goods and services.
In an operational update released on January 11 by SmartRent, Inc. (NYSE:SMRT), units deployed for Q4 and FY 2021 were estimated to be 51,000 and 167,000, respectively, up 69 and 100% year over year.
On January 4, SmartRent (NASDAQ:SMRT) purchased iQuue, an east coast-based provider of open-architecture smart apartments with approximately 22,000 installed and committed units. The transaction is anticipated to increase SmartRent’s yearly recurring income by around $2 million (NASDAQ:SMRT).
In Q4 2021, 17 hedge funds that Insider Monkey tracks were positive on SmartRent (NASDAQ:SMRT), with a total investment of $115.7 million. In the last quarter, 15 funds owned shares in SmartRent (NASDAQ:SMRT) worth $213.8 million.
Universal Electronics Incorporated (Trading on NASDAQ as UEIC)
An Arizona-based firm called Universal Electronics Inc. (NASDAQ:UEIC) creates and sells IoT gadgets, smart thermostats, virtual assistants for smart homes, universal remote controls, and home sensors.
In Q4 2021, 7 hedge funds reported having interests in Universal Electronics Inc. (NASDAQ:UEIC) for a total of $8.4 million, compared to 10 firms who had stakes in the company for a total of $9.2 million in the previous quarter. The largest shareholder in the business was AQR Capital Management, which owned 66,674 shares worth $2.7 million.
Institutional investors are increasingly paying attention to Universal Electronics Inc. (NASDAQ:UEIC), which is rapidly overtaking rivals Resideo Technologies, Inc. (NYSE:REZI), Honeywell International Inc. (NASDAQ:HON), and Apple Inc. (NASDAQ:AAPL).
Pre-programmed universal wireless remote controllers for home audio and video entertainment systems are created and produced by Universal Electronics. Shares of the company underperformed in the quarter, in large part because of the predicted shortfall in global semiconductors, which is likely to have an immediate effect on business operations. The pandemic’s aftereffects are also proving to be only a slight hindrance since technician-required in-home installs of the company’s goods are still below pre-pandemic levels. Despite this, the business is seeing considerable margin increase as it pursues increasingly complex, software-intensive products, which are anticipated to be a big driver of future development.
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