5 Best Internet of Things (IoT) Stocks To Buy Now

Below you can find our list of the 5 best IoT stocks to buy now. For our methodology, discussion of industry trends, and a more comprehensive list please see 14 Best Internet of Things Stocks To Buy Now.

5. Analog Devices, Inc. (NASDAQ:ADI)

No of HFs: 52

Total Value of HF Holdings: $3.64 Billion

Analog Devices, Inc. is ranked as the fifth-best internet of things stock to buy now. The company is a producer of data conversion, signal processing, and power management technology.

The company collaborated with Marvell Technology Group LTD (MRVL) to come up with an advanced 4G/5G radio unit that supports high antenna counts and multi-gigabit per second throughput for both integrated RAN and Open RAN deployments. Raj Singh, Executive Vice President and General Manager of Marvell’s Processor Business Group said that the joint effort will minimize the amount of silicon required to deliver massive MIMO RU solutions,

“Our goal in joining with ADI in this effort was to provide a complete, open standards-based RU platform, one that leverages what each company does best, We wanted to minimize the amount of silicon required to deliver massive MIMO RU solutions capable of supporting 32T32R performance, along with beamforming and DFE functions. ADI’s transceiver solutions align perfectly with our RU and digital unit baseband offerings – it’s exactly what the industry has been seeking in next generation RU designs.”

The top hedge fund holder of this stock is David Blood and Al Gore’s Generation Investment Management, which had over $682 million invested in the stock at the end of September.

4. Dexcom, Inc. (NASDAQ:DXCM)

No of HFs: 58

Total Value of HF Holdings: $1.51 Billion

Dexcom, Inc. was mentioned as one of the 12 Best Fitness Stocks to Buy Now. The company recently released their latest generation product the Dexcom G6 which takes glucose readings in real-time and is able to send the results wirelessly through a smartphone.

In an article, Brown Advisory mentioned a few comments on the stock.

“The right words to describe DexCom’s attractive performance are hard to find. Despite an expanded approval of Abbott’s competing glucose monitoring device, the stock has remained resilient.”

3. Cisco Systems, Inc. (NASDAQ:CSCO)

No of HFs: 59

Total Value of HF Holdings: $3.93 Billion

Cisco Systems, Inc. is an American multinational company that develops IoT applications to help step up business outcomes. During the third quarter of 2020, the company reported a revenue of $12.0 billion.

In an article, Heartland Opportunistic Value Fund mentioned a few comments on the stock.

“A handful of Information Technology (IT) names have been grabbing most of the investment headlines lately, however, as a whole, the sector has been a mixed bag from a performance standpoint. The Russel 3000® Value Index highlights the dynamic where the group ended the period mostly flat. Our holdings in the space outperformed marginally but also contained a key detractor, Cisco Systems, Inc. (CSCO).

Cisco, the world’s leading computer networking provider, was down for the period after revenues from its Products and Applications business lines weakened as IT departments postponed network spending in response to COVID-19. Sales from its security line were up roughly 14% but strength in the segment wasn’t large enough to offset weakness elsewhere. Impressively, they held operating margin on a 9% revenue decline.

Wall Street’s reaction to the weak results were mixed. Some credited the company for executing well in the face of an unprecedented macro pressure on its clients, while others cited results as an indicator that Cisco is struggling in its transformation from a predominantly hardware-oriented business to one that generates recurring-revenue through software and services.

The challenges faced by Cisco strike us as a temporary setback to what has been ongoing progress in its transition to a model that generates recurring revenue and is less tied to the IT spending cycle.

We believe the positive strides made in previous quarters will resume. With the recent setback, shares are trading at an attractive 12x earnings, while generating a nearly 4% dividend yield and a free cash flow/enterprise yield of nearly 10%.”

In a separate article, Brown Advisory also mentioned a few comments on the stock.

“Networking equipment provider Cisco Systems gained after reporting solid quarterly results amid a challenging economic environment. The company’s security and video conferencing products are in greater demand due to the ongoing work-from-home trend, suggesting an improved business growth outlook for the remainder of the year.”

2. NXP Semiconductors NV (NASDAQ:NXPI)

No of HFs: 68

Total Value of HF Holdings: $1.63 Billion

NXP Semiconductors NV was mentioned as one of the Top 10 Stocks Billionaire George Soros Just Bought. The company is a semiconductor producer that provides its users with secure connections for a smarter world.

Recently, the company announced a complete suite of new radar sensor chipset solutions that can surround vehicles in a 360-degree safety cocoon. Torsten Lehmann, EVP, and GM, Radio Frequency Processing of NXP said the radar sensor solutions can help users cover NCAP requirements.

“Radar has evolved from just detecting other cars’ velocity and distance to providing imaging radar’s high-resolution object and feature detection for precisely mapping the car’s surroundings. Our new radar sensor solutions can help customers cover NCAP requirements to make driving safe, and also address the frontier of ADAS sensing on the path towards fully autonomous vehicles.”

1. Qualcomm, Inc. (NASDAQ:QCOM)

No of HFs: 87

Total Value of HF Holdings: $10 Billion

Qualcomm ranks number one on our list of best internet of things stocks to buy now. The company is a manufacturer of multinational semiconductor and telecommunications equipment. Their products include processors, modems, RF systems, and alike. QCOM was mentioned as of the 30 Most Popular Stocks Among Hedge Funds: 2020 Q3 Rankings.

Check out this article where we mentioned Del Principe O’Brein Financial Advisors’ comments on the stock,

“When Qualcomm was trading in the low $50s, we bought every share we could. Qualcomm stock rose to around $70 when Broadcom was set to acquire the company, but ultimately the deal did not go through. In April of this year, Qualcomm ended a lengthy and complicated legal battle with Apple over the licensing of Qualcomm’s chip technology in Apple’s mobile devices, including its iPhones. The settlement included a payout from Apple to Qualcomm rumored to be around $6 billion, as well as a six-year licensing agreement and a supply agreement guaranteeing that the chipmaker continue to provide its products to the largest company in the world. With this settlement and the expected increase in product shipments, Qualcomm anticipates an incremental earnings per share of $2. As Qualcomm shareholders, we were able to realize a gain of 54% over a short period of time.”

Please also see 10 Best Dow Stocks to Buy Now and 12 Best Autonomous Vehicle Stocks to Buy Now.

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