13 Best Internet of Things (IoT) Stocks to Buy Now

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10. Alarm.com Holdings, Inc. (NASDAQ:ALRM)

Number of Hedge Fund Holders: 33

Market Capitalization: $2.26 billion

On February 20, Alarm.com Holdings, Inc. (NASDAQ:ALRM) saw Barclays analyst Saket Kalia reduce the firm’s price target to $50 from $56 while maintaining an Equal Weight rating following the company’s fourth-quarter earnings report and updated financial model.

On February 18, JPMorgan lowered its price target on Alarm.com Holdings, Inc. (NASDAQ:ALRM) to $40 from $55 and maintained an Underweight rating, citing broad underperformance across the vertical software sector. The firm noted that the rapid acceleration of artificial intelligence deployment raises questions regarding competitive moats and the long-term defensibility of certain software business models.

On February 20, Alarm.com Holdings, Inc. (NASDAQ:ALRM) reported fourth-quarter revenue of $261.7 million, exceeding the consensus estimate of $250.75 million. Adjusted earnings per share for the quarter were $0.72, surpassing the consensus expectation of $0.64. For fiscal 2026, the company guided revenue in the range of $1.058 billion to $1.065 billion, above the consensus forecast of $1.04 billion.

Alarm.com Holdings, Inc. (NASDAQ:ALRM) operates a cloud-based platform that connects and manages a broad ecosystem of IoT-enabled devices, including security cameras, door locks, thermostats, and environmental sensors, through a unified interface serving residential and commercial properties. Tenth in the list of best internet of things (IoT) stocks to buy now, the company is expanding its portfolio into AI-driven video analytics, energy management solutions through EnergyHub, and commercial property automation.

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