Summary: In this guide, we explore the top 3 IoT stocks to buy this year. Each of these is available on our chosen brokerage platform, eToro.
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What are IoT stocks?
IoT is short for the Internet of Things, which refers to the interconnected network of devices that communicate and share data. These devices can range from smart home gadgets and wearables to industrial sensors and autonomous vehicles. IoT stocks represent companies at the forefront of this technological revolution, creating the hardware, software, and infrastructure that power these connected ecosystems.
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3 best IoT stocks to buy this year
After conducting thorough research on the best IoT stocks to buy this year, we’ve come up with our overall top 3 picks:
- Skyworks Solutions (NASDAQ: SWKS);
- Honeywell (NASDAQ: HON);
- Johnson Controls (NYSE: JCI).
Note
Highly Rated Stock Trading & Investing Platform
-
Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
-
0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
-
eToro USA is registered with FINRA for securities trading.
Skyworks Solutions (SWKS)
Skyworks Solutions is a leading player in the semiconductor industry, providing crucial components for wireless communication in various IoT devices. As the demand for connectivity rises, Skyworks is well-positioned to capitalize on this trend. Also, the company’s expertise in creating high-performance chips for smartphones, IoT devices, and 5G technology makes it a standout choice for investors seeking exposure to the expanding world of connectivity.
Skyworks Solutions stock price today
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Honeywell (HON)
Honeywell is a conglomerate with a diverse portfolio that extends into the IoT space. Known for its prowess in aerospace, building technologies, and performance materials, Honeywell has successfully integrated IoT solutions into its offerings. The company’s focus on smart buildings, industrial automation, and energy management positions it as a key player in the IoT landscape. Hence, investors looking for stability and a diversified approach to IoT may find Honeywell an attractive option.
Honeywell stock price today
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Johnson Controls (JCI)
Johnson Controls specializes in building technologies and solutions, and its foray into IoT has been nothing short of impressive. With a focus on creating intelligent and sustainable environments, Johnson Controls leverages IoT to enhance energy efficiency, security, and overall building performance. And as the world prioritizes sustainable practices, Johnson Controls stands out as a company aligning itself with the evolving needs of businesses and consumers alike.
Johnson Controls stock price today
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Where to buy IoT Stocks
Investing in IoT stocks can be done through various online brokerage platforms. That said, our go-to broker is eToro—a widely popular platform with more than 30 million registered accounts and a license from FinCEN. Furthermore, it also provides a range of useful features, such as:
- Commission-free stock trading;
- Access to over 2,000 stocks from 17 different exchanges;
- Charting tools;
- The option to purchase fractional shares.
Highly Rated Stock Trading & Investing Platform
-
Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
-
0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
-
eToro USA is registered with FINRA for securities trading.
Pros and cons of buying IoT stocks
Pros
- High growth potential: The increasing integration of IoT in various sectors presents significant growth opportunities for companies in this space;
- Diversification: Investing in IoT stocks allows for diversification within the technology sector, reducing risk compared to focusing on a single industry;
- Innovation and technological advancements: IoT companies are often at the forefront of innovation, driving technological advancements that can translate into market outperformance.
Cons
- Volatility: Like many technology stocks, IoT stocks can be subject to high levels of volatility, making them susceptible to sudden price swings;
- Regulatory risks: As IoT involves the collection and transmission of data, companies in this space may face regulatory challenges and privacy concerns;
- Competition: The IoT market is competitive, and companies must continually innovate to stay ahead. Intense competition can impact profit margins and market share.
Common mistakes to avoid when buying IoT stocks
- Ignoring security concerns: Given the nature of IoT, security is a crucial consideration. Investing in companies with robust cybersecurity measures is, therefore, essential to mitigate risks;
- Overlooking scalability: Companies that can scale their IoT solutions effectively are more likely to capitalize on the growing demand. Assess a company’s scalability before investing;
- Neglecting research: Lack of research can lead to uninformed investment decisions. So, stay informed about industry trends, company financials, and potential risks to make educated choices.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about IoT stocks
What is the Internet of Things (IoT)?
The Internet of Things refers to the interconnected network of devices that communicate and share data, creating a smart and connected ecosystem.
What are the top 3 IoT stocks to buy now?
Skyworks Solutions (NASDAQ: SWKS), Honeywell (NASDAQ: HON), and Johnson Controls (NYSE: JCI) emerge as the top three IoT stocks to buy this year, with Skyworks excelling in semiconductor technology, Honeywell’s diversified portfolio navigating various IoT sectors, and Johnson Controls leading in intelligent and sustainable building solutions.
How do I buy IoT stocks?
You can buy IoT stocks through online brokerage platforms such as Robinhood, TD Ameritrade, or E*TRADE. Research each platform’s fees and features before choosing the one that suits you.
Are IoT stocks a good investment?
IoT stocks have the potential for high growth, but like any investment, they come with risks. You should, therefore, conduct thorough research, consider your risk tolerance, and diversify your portfolio.
