Smart home stocks offer tremendous long-term upside. The “internet of things,” or IoT, describes the growing number of physical objects,…

Smart home stocks offer tremendous long-term upside.

The “internet of things,” or IoT, describes the growing number of physical objects, devices, appliances and machines that are connected to the internet via sensors and software. The IoT is already changing people’s everyday lives inside their homes, with the advent of products like smart speakers and doorbells. Bank of America recently found that 72% of survey respondents own at least one connected device in their home, up from 43% in 2019. Smart home additions and upgrades have played a big role in the booming housing and home improvement markets. Here are nine IoT stocks to buy to bet on the smart home trend, according to Bank of America.

Amazon.com Inc. (ticker: AMZN)

Bank of America says Amazon is king of smart home device retailing. In fact, 23% of survey respondents said they would prefer to buy a connected home device from Amazon, a higher percentage than for any other retailer. Analyst Justin Post says Amazon’s smart home dominance is driven by a number of factors, such as its Prime membership program, low prices, convenient shipping options, a wide range of available products, the integration of Echo smart home hubs and its acquisition of smart doorbell company Ring. Bank of America has a “buy” rating and a $4,250 price target for AMZN stock, which closed at $3,523.16 on Dec. 8.

Best Buy Co. Inc. (BBY)

Best Buy is the first retailer that 16% of survey respondents would choose to buy a connected home device from. Analyst Elizabeth Suzuki says the company’s advantages include its customer service, its focus on the smart home category and its vendor-supported product offerings. Suzuki says Best Buy’s smart home market share may expand further as the complexity of connected home devices increases, requiring more advanced installation and servicing. Suzuki says Best Buy has transformed into one of the most consistent and highest-quality modern retailers. A Bank of America survey found that 16% of respondents would prefer to buy a connected home device at Best Buy.

Walmart Inc. (WMT)

Walmart is another top smart home shopping destination. Bank of America found that 12% of shoppers would prefer to buy a connected device at Walmart, including 41% of shoppers between the ages of 18 and 29. Analyst Robert Ohmes says Walmart’s omnichannel capabilities will likely continue to help it gain market share from less tech-savvy brick-and-mortar competitors in home-related categories. Walmart’s core brick-and-mortar business remains solid, and it is gaining market share in the grocery category. Walmart has also made tremendous strides in online sales, delivery and pickup. Bank of America has a “buy” rating and a $190 price target for WMT stock, which closed at $137.15 on Dec. 8.

Home Depot Inc. (HD)

Home Depot is the market share leader in large home appliance sales. The smart home survey suggests that its share is expanding, given that 23% of respondents report purchasing a large home appliance from Home Depot in the past three years, up from just 15% a year ago. Suzuki says much of those market share gains come from Sears and other smaller retailers. These retailers outside the top five account for just 12% of large appliance sales, down from 30% in last year’s survey. Bank of America has a “buy” rating and a $440 price target for HD stock, which closed at $411.25 on Dec. 8.

Lowe’…….

Source: https://wtop.com/news/2021/12/9-internet-of-things-stocks-to-buy/