How to Invest in Home Automation Stocks

home automation stocks

There are several ways to invest in home automation stocks. If you are considering buying home automation devices, you can choose companies with an IPO date. Many IPOs are geared toward consumer demand and focus on the market. For example, there are several home automation companies whose stock prices have been on the rise in recent years. Some of these companies are listed below. This article aims to provide you with the basics of home automation. Read on to learn more about these stocks and their potential for investors.

The internet of things (IoT) refers to a growing network of devices, machines, and appliances. This technology is already changing the way we live inside our homes. According to a survey by Bank of America, 72% of respondents currently own a connected device. And the number of those who will have a connected device in their home will grow by 43% by 2020. These smart additions are contributing to housing market growth as well. Bank of America has listed nine IoT stock recommendations for investors who are interested in investing in the home automation industry.

Apple is also taking the smart home market seriously, with its powerful brand, strong management, and technological prowess. Alphabet (Google) has tons of complementary products but its ecosystem is not nearly as robust as Amazon’s. Alphabet (Google) has recently acquired the home security company Nest for $3 billion and rebranded its technology under its own name. While the odds of this stock flop are not high, the company is certainly worth considering.

Publicly traded home automation companies had a great year in 2020. The average stock price of these companies rose 34.5% in 2020. In 2019, the winners outnumbered losers almost two-to-one. Five of these companies experienced stock price increases of up to four times, while just eight saw their prices fall. Those stocks should watch for a few more years, as investors are likely to be putting their money into them. One such company is Universal Electronics, which has been a fast-growing smart-home stock.

The growth rate of 2020 smart home stocks looks similar to overall market gains. The Dow Jones Industrials rose 7.7% this year, while the tech-heavy Nasdaq rose 44.3%, and the Zacks Consensus Estimate for 2020 earnings has been revised upward over the past 60 days. Johnson Controls International plc designs and sells air conditioning, refrigeration, and energy efficiency solutions. Its growth is comparable to that of the market, which experienced a downturn in 2018.

Amazon has a huge advantage over its competitors in the smart-home market. Its vast research and development budget puts it ahead of the competition. Amazon is spending more than twice as much money on research and development than any other company, giving it a leg up in the smart home market. With this in mind, investing in Amazon’s stock is a smart move. Its share price has already climbed more than 260% in the last five years.