In this article, we discuss 10 best consumer electronics stocks to buy. If you want to see more stocks in this selection, check out 5 Best Consumer Electronics Stocks To Buy.
The employment situation in the United States remains robust, and the labor market continues to be highly competitive. According to the latest report from the Labor Department, the unemployment rate stands at 3.5%, indicating a significant recovery as more individuals have returned to work following the Covid pandemic. However, retailers like Best Buy Co., Inc. (NYSE:BBY) have expressed a cautious outlook due to a decline in consumer spending in certain categories like consumer electronics. This shift in consumer behavior has resulted in reduced sales of non-essential items, as individuals prioritize spending on essential goods due to inflationary pressures. The company also laid off hundreds of employees as consumer spending patterns are changing swiftly.
Similarly, CNBC reported that Foxconn, a major supplier for Apple Inc. (NASDAQ:AAPL), announced a 10% decrease in profit for 2022 and predicted a decline in consumer electronics demand for the entire year ahead. This downbeat sentiment is in line with Apple Inc. (NASDAQ:AAPL)’s own cautious expectations for consumer sales. During Apple’s first-quarter 2023 earnings report, Chief Financial Officer Luca Maestri said that they anticipated double-digit declines in Mac and iPad sales for the upcoming March quarter, compared to the previous year. However, the decline in iPhone sales is expected to be less significant in the March quarter compared to the December quarter. Foxconn plans to expand its operations beyond mainland China and has identified exploring new markets as a key priority for the company in 2023.
Despite the near-term outlook muted because of a global recession, the consumer electronics market is expected to witness sustained growth in the coming years, primarily driven by advancements in technology and rapidly changing consumer preferences. These factors will fuel innovation and competition within the industry. According to the Global Consumer Electronics Market report published by Reports Insights, the market achieved a value of $740.79 billion in 2022 and is projected to reach a market size of over $1063.39 billion by 2030, with a compound annual growth rate (CAGR) of 4.62%. The expansion of technologies is a key factor propelling the growth of the consumer electronics market. The increasing demand for compact wearable devices such as earbuds, smartwatches, and smart glasses is driving the growth further. Furthermore, the rising trend of remote work has led to increased adoption of computing devices, contributing to the growth of the consumer electronics market.
The consumer electronics industry is dominated by the highly profitable smartphone business, which holds a significant share of the overall market. Other notable submarkets include personal computers, televisions, and household appliances. Some of the best consumer electronics stocks to buy include Apple Inc. (NASDAQ:AAPL), Sony Group Corporation (NYSE:SONY), and Best Buy Co., Inc. (NYSE:BBY).
Copyright: kobby_dagan / 123RF Stock Photo
Our Methodology
We scanned Insider Monkey’s database of 943 hedge funds and picked the top 10 companies that operate in the consumer electronics sector with the highest number of hedge fund investors. These are the best consumer electronics stocks to buy according to hedge funds.
Best Consumer Electronics Stocks To Buy
10. Universal Electronics Inc. (NASDAQ:UEIC)
Number of Hedge Fund Holders: 7
Universal Electronics Inc. (NASDAQ:UEIC) is involved in the creation, advancement, production, and distribution of pre-programmed and versatile control devices, as well as audio-video accessories. The company also specializes in intelligent wireless security systems and smart home products catering to video services, consumer electronics, security, home automation, climate control, and home appliance markets.
On March 15, investment advisory Sidoti upgraded Universal Electronics Inc. (NASDAQ:UEIC) to Buy from Neutral with a $16 price target. Analyst Gregory Burns issued the ratings update.
According to Insider Monkey’s fourth quarter database, 7 hedge funds were bullish on Universal Electronics Inc. (NASDAQ:UEIC), with collective stakes worth $10 million, compared to 6 funds in the prior quarter worth $4.8 million. Ken Griffin’s Citadel Investment Group is the largest stakeholder of the company, with 75,289 shares worth $1.56 million.
Like Apple Inc. (NASDAQ:AAPL), Sony Group Corporation (NYSE:SONY), and Best Buy Co., Inc. (NYSE:BBY), Universal Electronics Inc. (NASDAQ:UEIC) is one of the best consumer electronics stocks to buy.
Carillon Tower Advisers made the following comment about Universal Electronics Inc. (NASDAQ:UEIC) in its Q3 2022 investor letter:
“Universal Electronics Inc. (NASDAQ:UEIC) designs and manufactures wireless universal control solutions for home entertainment and smart home devices. The stock was pressured after management gave forward guidance that came in below investor expectations. Despite a number of design wins within its heating, ventilation, and air conditioning and home-automation product lines, the company’s shares have been pressured as it continues to be plagued by component shortages as well as persistent logistical issues at some of its largest customers.”
9. VOXX International Corporation (NASDAQ:VOXX)
Number of Hedge Fund Holders: 8
VOXX International Corporation (NASDAQ:VOXX) is engaged in the design, production, and global distribution of automotive electronics, consumer electronics, and biometric products. The company’s operations span across the United States, Europe, and other international markets. On January 9, VOXX International Corporation (NASDAQ:VOXX) reported a FQ3 GAAP EPS of $0.30, beating Wall Street estimates by $0.20. It is one of the best consumer electronics stocks to invest in.
On October 13, DA Davidson analyst Tom Forte maintained a Buy rating on VOXX International Corporation (NASDAQ:VOXX) but lowered the firm’s price target on the shares to $10 from $16. Forte said this adjustment was due to VOXX International Corporation (NASDAQ:VOXX)’s Q2 earnings falling short of expectations, which he attributed to a challenging sales environment. Despite these near-term challenges, the analyst was optimistic about Voxx’s long-term prospects. He believes that the company’s partnership with Amazon in automotive efforts, the introduction of related products, and strategic mergers and acquisitions serve as catalysts for future growth.
According to Insider Monkey’s fourth quarter database, 8 hedge funds held stakes worth $31.3 million in VOXX International Corporation (NASDAQ:VOXX), compared to 5 funds in the prior quarter worth $29.5 million. Irving Kahn’s Kahn Brothers is the biggest stakeholder of the company, with 3 million shares worth $25.2 million.
8. Vuzix Corporation (NASDAQ:VUZI)
Number of Hedge Fund Holders: 9
Vuzix Corporation (NASDAQ:VUZI) designs, manufactures, markets, and sells wearable display and computing devices for augmented reality purposes. These devices cater to both consumer and enterprise markets and are distributed in North America, Europe, the Asia-Pacific region, and other international markets.
Vuzix Corporation (NASDAQ:VUZI) reported that its sales in Q1 2023 exceeded $4 million, which represents a growth of over 60% compared to the revenues of $2.5 million generated in the first quarter of the previous year. This performance surpassed the consensus revenue estimate of $3.7 million. It is one of the top consumer electronics stocks to invest in.
According to Insider Monkey’s fourth quarter database, 9 hedge funds were long Vuzix Corporation (NASDAQ:VUZI), compared to 5 funds in the prior quarter. Cathie Wood’s ARK Investment Management is the largest stakeholder of the company, with 6.47 million shares worth $23.5 million.
7. VIZIO Holding Corp. (NYSE:VZIO)
Number of Hedge Fund Holders: 11
VIZIO Holding Corp. (NYSE:VZIO) offers smart TVs, soundbars, and related accessories within the United States. The company also operates Platform+, which includes SmartCast, an operating system for smart TVs that enables a comprehensive home entertainment solution. On February 28, VIZIO Holding Corp. (NYSE:VZIO) reported a Q4 GAAP EPS of $0.03 and a revenue of $533.5 million, outperforming Wall Street estimates by $0.01 and $29.26 million, respectively.
On March 31, Morgan Stanley analyst Benjamin Swinburne maintained an Equal Weight rating on VIZIO Holding Corp. (NYSE:VZIO) and reduced the price target on the shares from $13 to $12. The firm anticipates that the first quarter will represent the lowest point for ad revenue growth. However, due to ongoing challenges in the advertising industry, it has adjusted its overall estimates downward.
According to Insider Monkey’s fourth quarter database, 11 hedge funds held stakes worth $11.7 million in VIZIO Holding Corp. (NYSE:VZIO), compared to 10 funds in the prior quarter worth $10.1 million. Raffi Tokatlian’s Ararat Capital is the biggest stakeholder of the company, with 739,472 shares worth $5.4 million.
In addition to Apple Inc. (NASDAQ:AAPL), Sony Group Corporation (NYSE:SONY), and Best Buy Co., Inc. (NYSE:BBY), VIZIO Holding Corp. (NYSE:VZIO) is one of the top consumer electronics stocks to invest in.
Here is what Argosy Investors has to say about VIZIO Holding Corp. (NYSE:VZIO) in its Q1 2022 investor letter:
“Reviewing Vizio (NYSE:VZIO), we purchased it quite recently and it has declined precipitously in our brief period of ownership. They have an explicit strategy to sacrifice gross margins from their TVs to further develop the audience for their smart TV offering, a competitor to Roku. I purchased the shares expecting the thesis to play out over a number of years, so I intend to monitor the company and its results as we move forward. Their first quarter results reflected strength in their Platform (Smart TV) segment, which will be their primary source of profit going forward. Further, the news that Netflix and other streaming companies are considering subscriptions that include advertising is positive news. In some ways, what is old is new again, as this development is somewhat of a return to the dual-revenue-stream model cable TV channels use. The shift towards more streaming programming including advertisements is a positive for Vizio, since they may be able to monetize the ads directly or indirectly. I’ll keep you posted on their progress.”
6. Turtle Beach Corporation (NASDAQ:HEAR)
Number of Hedge Fund Holders: 13
Turtle Beach Corporation (NASDAQ:HEAR) is an audio technology company that operates globally. The company specializes in developing, selling, and marketing gaming headsets and gaming consoles. These products are sold under the Turtle Beach brand. The company also offers gaming accessories, such as keyboards and mice, under the ROCCAT brand. On March 13, Turtle Beach Corporation (NASDAQ:HEAR) announced that its board has authorized an extension of the share repurchase program for an additional two years, now running until April 9, 2025. The program allows the company to repurchase up to $25 million worth of its common stock.
On April 25, Roth MKM maintained a Buy rating on Turtle Beach Corporation (NASDAQ:HEAR) and set a price target of $16 in anticipation of the company’s Q1 results. The firm suggests that revenue is expected to experience a slight decline, as recent data indicates stagnant U.S. retail sales of gaming accessories compared to the previous year. Furthermore, there is continued pressure in the European market. However, Roth MKM expects sales growth for Turtle Beach Corporation (NASDAQ:HEAR) to pick up after Q1, projecting a 15% increase in full-year sales and a $20 million improvement in adjusted EBITDA. Additionally, the influence of activists could potentially trigger actions aimed at maximizing shareholder value, the firm told investors.
According to Insider Monkey’s fourth quarter database, 13 hedge funds were bullish on Turtle Beach Corporation (NASDAQ:HEAR), compared to 18 funds in the last quarter. Sander Gerber’s Hudson Bay Capital Management is the largest stakeholder of the company, with 916,165 shares worth $6.5 million.
Click to continue reading and see 5 Best Consumer Electronics Stocks To Buy.
Suggested articles:
- 15 Best Dividend Stocks of 2023
- 10 Best Small Cap Defense Stocks to Buy Now
- 12 Best Fast Growth Stocks to Buy Now
Disclosure: None. 10 Best Consumer Electronics Stocks To Buy is originally published on Insider Monkey.