3 Top Stocks To Own As IoT Technology Gains Traction

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Many businesses are planning to continue, at least in part, with remote working arrangements even after the pandemic is over given its benefits and the huge investments they made in remote connectivity during the pandemic. This is expected to buoy demand for gadgets that support Internet of Things (IoT) technology. Furthermore,  the commercial deployment of 5G technology is expected to create a high demand for secure IoT devices and tech solutions in the coming months. Manufacturing and industrial sectors are also increasingly using IoT technology.

The global IoT market is expected to grow at a 10.5% CAGR  over the next five years to reach $1.39 trillion by 2026. Investor optimism about this industry is evident in the Global X Internet of Things Thematic ETF’s (SNSR) 51.2% returns over the past year. This compares to the SPDR S&P 500 Trust ETF’s (SPY) 40.1% gains over this period.

Given this backdrop, we think it’s wise to invest in ABB Ltd (ABB), Skyworks Solutions, Inc. (SWKS), and Qorvo, Inc. (QRVO) because these companies are positioned nicely to benefit from the growing demand for IoT technology.

ABB Ltd (ABB)

ABB is a Swiss-based technology company that manufactures and sells electrification, industrial automation, and robotics and motion products to customers in utilities, industry and transport, and infrastructure sectors worldwide.

On May 17, 2021, ABB’s Robotics and Discrete Automation and Absolicon Solar Collector developed a factory in Sweden to automate mass production of concentrated solar collectors. ABB robots enable Absolicon to produce one solar collector panel every six minutes compared to building three per day, making Absolicon’s solar technology a cost-competitive alternative to conventional heating. This acceleration in productivity is likely to sustain a long-term partnership with ABB.

ABB won orders from Stadler Rail, a Swiss-based rail vehicle manufacturer, on April 16, to enable energy-efficient and sustainable transportation for operators Schleswig-Holstein and Berlin in Germany. ABB’s energy-efficient traction converters and high-power lithium-ion battery-based onboard energy storage systems will be installed on its power trains. ABB is looking forward to having a long-term partnership with Stadler Rail.

The company received orders worth $7.76 billion in its fiscal 2021 first quarter ended March 31, 2021, which increased 5.6% year-over-year. ABB’s total revenue increased 11% year-over-year to $6.90 billion. Its gross profit has been $2.27 billion, up 18.7% from the prior year period. Its income from operations is reported to be $797 million for the quarter, which represents a 113.7% improvement year-over-year. While its net income increased 33.5% year-over-year to $502 million, its EPS increased 38.9% year-over-year to $0.25.

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