In this piece, we will take a look at ten best consumer electronics stocks to buy.
The global consumer electronics market has been experiencing significant growth, driven by rapid technological advancements and evolving consumer lifestyles. In 2024, the market reached an impressive valuation of $755 billion, with projections indicating it could soar to $1.15 trillion by 2031 (as per estimates by Research and Markets). This upward trajectory can largely be attributed to the increasing demand for innovative electronic devices that simplify everyday life and enhance overall convenience. As technology continues to evolve, so too does the consumer electronics industry, which has become an integral part of modern life. Consumer electronics have revolutionized how people live, work, and connect. From smartphones and tablets to smartwatches and connected home devices, these products have become essential to daily routines. They make everyday tasks easier, more efficient, and more enjoyable. Whether it’s remote working, entertainment, or staying connected with loved ones, consumer electronics play a pivotal role in these activities. The steady stream of technological innovation has been a driving force behind the industry’s continued growth, as consumers seek out new devices that integrate seamlessly into their lives.
Consumer electronics devices, which are designed for communication, entertainment, and information purposes, play a crucial role in the tech landscape. Continuous innovation and the release of new, interconnected devices ensure the industry’s competitiveness, with companies constantly striving to capture consumer interest. Despite global economic challenges, the consumer electronics market remains resilient, driven by advancements in areas like AI and smart devices. Wearables, such as smartwatches, alongside newer technologies like AR glasses and VR headsets, are gaining popularity. For example, smartphone shipments reached around 1.2 billion units globally in 2023, cementing the category’s status as the most profitable segment. The market is projected to grow further in the coming years. According to industry reports, revenue could reach $1.13 trillion by 2025, recording a steady annual growth rate of 3%. Additionally, sustainability and recycling trends have become increasingly important, with companies benefiting from recycling materials to address challenges like the global chip shortage. The global electronics recycling market is expected to exceed $57 billion by 2025, further underscoring the industry’s forward-thinking approach to innovation and sustainability.
The business environment is rapidly evolving, and by 2035, what is considered business-as-usual today will likely be vastly different. Stricter regulations and heightened market expectations are expected to result in increased costs related to raw material extraction, logistics, CO2 emissions pricing, and end-of-life expenses. According to a PWC report, the electronics industry could face a 15% increase in operational costs by 2035, compared to a 2023 baseline. This is due to rising landfill fees, longer transportation distances, fluctuating raw material prices, and the depletion of critical resources like copper, cobalt, lithium, and gold. To mitigate these rising costs, businesses can adopt circular business models that lead to lower operational expenses through CO2 savings and efficiency gains. Proactively transitioning to circular models offers a significant cost advantage over passively complying with regulations and sticking to traditional linear models. PWC’s projections reveal that circular business models could lead to cost savings of around 12% and CO2 reductions of at least 10% by 2035 compared to a business-as-usual approach.
North America, particularly the United States, is at the forefront of the consumer electronics market, leading globally in terms of adoption and demand. The region is expected to maintain this leadership position due to its swift embrace of cutting-edge technologies. In the U.S., the fast-paced lifestyle increasingly revolves around digital solutions, with automation becoming a key priority. The American market continues to thrive on its demand for new and innovative devices that can streamline everyday tasks and improve productivity. With the integration of advanced technologies and ongoing innovation, North America remains a critical region for the growth of the consumer electronics industry. At the same time, the rise of smart home technologies has opened up new opportunities for growth in the consumer electronics market. Devices like voice assistants and internet-connected home appliances are becoming increasingly popular, driving demand for products that make everyday life more convenient. The integration of consumer electronics with these technologies is shaping the future of home automation. Companies with advanced voice recognition technology are playing a significant role in the smart home revolution. Collaborative partnerships between firms and AI specialists are further enhancing the potential of these technologies, pointing to a future where smart homes become the norm.
China has also emerged as a major force in the global consumer electronics market, contributing significantly to the supply chain. As a leading producer of electronic components and raw materials, China plays a crucial role in meeting the global demand for consumer electronics. The Chinese market is witnessing a surge in the adoption of devices with voice assistance, Bluetooth, and Wi-Fi connectivity, making lives more convenient. The country’s commitment to technological innovation and the growing preference for smart devices are fueling its market growth. With these advancements, China’s consumer electronics market is projected to continue expanding at an impressive rate over the next decade. In Europe, Germany and the United Kingdom stand out as key markets with immense potential. These countries have seen high adoption rates of consumer electronics such as smartphones, televisions, personal computers, and cameras. European companies are heavily investing in research and development, and many are forming collaborations aimed at driving innovation in the industry. This focus on innovation and the growing demand for high-quality consumer electronics make Europe an exciting region for market growth.
As the global consumer electronics industry continues to expand, it presents compelling opportunities for investors. In this article, we’ll explore the 10 best consumer electronics stocks to buy, offering valuable insights into the companies leading the way in this dynamic and fast-evolving sector.
A busy retail store showcasing a wide range of consumer electronics.
Our Methodology
For this article we screened for consumer electronics companies using the Finviz stock screener and sifted through online rankings. We compiled a preliminary list of 15 stocks and then scanned Insider Monkey’s database of 912 hedge funds and to pick the 10 stocks with the highest number of hedge fund investors as of the end of the second quarter of 2024. The list is arranged in ascending order of the number of hedge fund investors in each firm.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Consumer Electronics Stocks to Buy
10. Vuzix Corporation (NASDAQ:VUZI)
Number of Hedge Fund Holders: 11
Vuzix Corporation (NASDAQ:VUZI) designs and manufactures a range of innovative consumer electronics products, including smart glasses and augmented reality (AR) technologies. These products cater to various markets such as enterprise, medical, defense, and consumer sectors. Among their offerings are head-mounted smart personal displays and wearable computing devices that deliver a portable viewing experience and solutions for mobility, wearable displays, and AR. Vuzix Corporation (NASDAQ: VUZI) is emerging as a pivotal player in the smart glasses market, particularly with its innovative waveguide technology, which is integral to the future of AI-powered wearables. The company’s Q2 2024 earnings call highlighted several fundamental strengths that position Vuzix Corporation (NASDAQ:VUZI) well for long-term growth, despite short-term challenges in revenue.
Financially, Vuzix Corporation (NASDAQ:VUZI) reported Q2 2024 revenues of $1.1 million, a decrease from the prior year due to fewer sales of smart glasses. Despite this dip, Vuzix Corporation (NASDAQ:VUZI) engineering service sales grew to $0.5 million, reflecting its increasing involvement in developing waveguide technologies for other companies. Gross losses stood at $0.3 million, primarily attributed to lower revenues and higher manufacturing overhead costs. Research and development (R&D) expenses decreased by 17% year-over-year, showcasing the company’s focus on efficiency while still investing in core technologies.
A key driver for Vuzix Corporation (NASDAQ:VUZI) future growth is its proprietary waveguide technology, which is crucial for the next generation of consumer and enterprise smart glasses. The company’s capacity to produce millions of waveguides at competitive costs and high quality sets it apart from competitors. This ability to scale production will be essential as AI-driven smart glasses gain wider adoption, particularly in the consumer market. Vuzix Corporation (NASDAQ:VUZI) management is confident about its strategic positioning, backed by a robust intellectual property portfolio of nearly 400 patents. The company is actively working on partnerships with industry leaders, including a notable collaboration with Garmin, to develop custom optical systems. Additionally, Vuzix is in talks with strategic partners to secure deals that will provide cash infusions and expanded market access, further enhancing its financial stability.
With a cash position of $9.9 million and a focus on reducing costs through payroll and operational adjustments, Vuzix Corporation (NASDAQ:VUZI) is positioned to navigate current challenges while capitalizing on future opportunities in the fast-growing wearable technology market. This combination of innovation, partnerships, and strategic cost management makes Vuzix Corporation (NASDAQ:VUZI) a compelling stock to watch in the consumer electronics sector.
09. GoPro, Inc. (NASDAQ:GPRO)
Number of Hedge Fund Holders: 15
Our list of ten best consumer electronics stocks to buy starts with GoPro, Inc. (NASDAQ:GPRO). GoPro, Inc. (NASDAQ:GPRO), a leading manufacturer of mountable and wearable cameras, has maintained a prominent position in the action camera market, thanks to its innovative product line, including the HERO series and accessories. While the company’s second-quarter 2024 earnings report showed a miss on expectations with a reported EPS of -$0.31 compared to the forecasted -$0.25, several positive fundamentals highlight GoPro, Inc. (NASDAQ:GPRO) long-term potential.
The company generated $186 million in revenue, exceeding guidance. A gross margin of 30.7% and strong subscription growth with over 2.53 million subscribers have contributed to an 8% year-over-year increase in service revenue. This steady subscriber base represents an annual recurring revenue of approximately $125 million, highlighting GoPro’s ability to generate consistent income outside of hardware sales. GoPro, Inc. (NASDAQ:GPRO) strategy of expanding its retail presence globally has been successful, adding 800 new retail doors in Q2 2024, with notable growth in EMEA and Latin America. Its partnership with Softbank in Japan is also expected to drive further expansion in a key international market.
Despite facing challenges in 2024 due to lower consumer confidence and increased competition, GoPro, Inc. (NASDAQ:GPRO) is on track to achieve profitability by 2025. The launch of its HERO13 Black flagship camera, along with a redesigned $199 HERO camera, positions the company for improved gross margins and sales performance. Additionally, GoPro, Inc. (NASDAQ:GPRO) expansion into new product segments like tech-enabled motorcycle helmets and 360-degree cameras offers growth opportunities in emerging markets. GoPro, Inc. (NASDAQ:GPRO) focus on diversification, cost reductions, and innovative product launches could restore long-term profitability. With strong brand recognition and a loyal customer base, the company’s fundamentals remain solid, making it a promising consumer electronics stock to watch.
08. iRobot Corporation (NASDAQ:IRBT)
Number of Hedge Fund Holders: 17
iRobot Corporation (NASDAQ:IRBT), a leader in consumer robotics, has undergone a significant restructuring in 2024 that sets the company on a strong path for recovery and future growth. As the manufacturer of the popular Roomba Vacuuming Robot and Braava mopping robots, iRobot Corporation (NASDAQ:IRBT) has established itself as a key player in the consumer electronics market. Despite challenges in Q2 2024, including a decline in revenue to $166.4 million from $236.6 million in Q2 2023, the company is taking strategic steps to improve its financial position.
Under the leadership of new CEO Gary Cohen, iRobot Corporation (NASDAQ:IRBT) has implemented a restructuring plan aimed at reducing operating expenses and improving product margins. One of the key financial highlights is the company’s cost reduction efforts, which resulted in a 28% year-over-year decrease in operating expenses, totaling $75.9 million for Q2 2024. This is largely attributed to workforce reductions and more efficient marketing strategies. iRobot Corporation (NASDAQ:IRBT) focus on restructuring is evident, with a $52.8 million reduction in operating expenses in the first half of 2024 alone.
The company’s gross margin for Q2 2024 was impacted by a one-time $18.4 million charge related to the transition to a contract manufacturing model. This charge resulted in a 16.7% gross margin, but without this one-time expense, iRobot Corporation (NASDAQ:IRBT) is on track to improve its margins as the company continues to streamline its operations. In addition, the launch of margin-accretive products, such as the Roomba Combo 10 Max, is expected to boost profitability in the coming quarters. iRobot Corporation (NASDAQ:IRBT) efforts to stabilize its business are also reflected in its balance sheet, with $108.5 million in cash and cash equivalents at the end of Q2 2024. As the company prepares for a series of new product launches in 2025, including a revamp of its entire product lineup, iRobot is well-positioned to reclaim its leadership in the consumer electronics market, making it an attractive stock for long-term investors.
07. Sonos, Inc. (NASDAQ:SONO)
Number of Hedge Fund Holders: 20
Sonos, Inc. (NASDAQ:SONO) is a renowned provider of high-quality audio products and services, designing and manufacturing wireless, portable, and home theater speakers, along with various components and accessories. The company has a strong global presence, distributing its products through approximately 10,000 third-party retail stores, custom home audio installers, e-commerce retailers, and its own website. Originally known as Rincon Audio, Inc., the company rebranded as Sonos, Inc. in 2004 and is headquartered in Santa Barbara, California. Sonos, Inc. (NASDAQ:SONO) remains a compelling option for investors, despite some challenges. In Q3 2024, the company delivered solid financial results, reporting revenues of $397 million, marking a 6% year-over-year increase. This growth was driven by the successful launch of Sonos’ first over-the-ear headphones, Ace, which entered the $5 billion premium headphone market. Despite a year-to-date revenue decline of 6.5%, Sonos’ gross margin rose to 48.3%, an improvement of 230 basis points from the previous year, indicating effective inventory management and cost control measures.
The company’s financial health is further underscored by its strong free cash flow generation. Sonos, Inc. (NASDAQ:SONO) generated $40.3 million in free cash flow during Q3, bringing the year-to-date total to $188 million, a significant increase from the $38 million in the prior year. This improvement was achieved through better inventory management and optimized supplier payment terms. The company ended the quarter with $277 million in net cash, providing a robust liquidity position to weather near-term challenges.
Despite setbacks related to the rollout of a new app, which delayed the release of two major products, Sonos, Inc. (NASDAQ:SONO) is committed to enhancing its customer experience. CEO Patrick Spence acknowledged these issues and outlined a clear strategy to address them, including fixing key bugs and improving the app’s performance through regular updates. The company has allocated $20 million to $30 million toward resolving these issues, which should strengthen its long-term position.
Investors should also note that Sonos returned $52.5 million to shareholders through stock repurchases in Q3, representing 2.6% of common shares outstanding. With $71 million remaining under its current share repurchase program, Sonos demonstrates its commitment to delivering shareholder value. In summary, Sonos, Inc. (NASDAQ:SONO) strong fundamentals, coupled with its strategic approach to navigating short-term headwinds, make it an attractive stock for investors seeking exposure to the premium consumer electronics market.
06. VIZIO Holding Corp. (NYSE:VZIO)
Number of Hedge Fund Holders: 23
VIZIO Holding Corp. (NYSE:VZIO) holds the number seventh spot on our list of ten best consumer electronics stocks to buy. VIZIO Holding Corp. (NYSE:VZIO) is a prominent player in the consumer electronics industry, offering a range of smart televisions, sound bars, and accessories across the United States. Through its Smart TV platform, Platform+, the company integrates its SmartCast operating system, which allows users access to a variety of streaming apps, such as Amazon Prime Video, Disney+, Netflix, and more. VIZIO’s Smart TVs also feature Apple AirPlay 2 and Chromecast support, enabling users to stream content from their devices. The company is known for making entertainment more accessible through its user-friendly interface and advanced smart home integrations.
VIZIO Holding Corp. (NYSE:VZIO) delivered a strong performance in Q3 2023, beating earnings expectations with an EPS of $0.069, significantly surpassing the anticipated $0.02. This performance is a testament to VIZIO’s robust platform monetization and growth in its advertising revenue, which surged by 27%, driven by large ad categories like insurance and retail. A key highlight of the quarter is the improvement in gross profit margins, which hit a record 22.6%, marking the third consecutive quarter of growth. This margin expansion is attributed to the strength of VIZIO Holding Corp. (NYSE:VZIO) high-margin Platform+ segment, which accounted for 37% of total revenue and over 100% of consolidated gross profit. Platform+ revenue grew 22%, benefiting from strong advertising sales and increased user engagement, particularly through its SmartCast operating system. SmartCast’s ARPU (Average Revenue Per User) rose 14% year-over-year, reaching a new high of $31.55, indicating higher engagement and monetization from VIZIO Holding Corp. (NYSE:VZIO) growing install base. The company’s focus on larger screen sizes is paying off, as these TVs tend to drive higher engagement and streaming hours, resulting in better economic value over the long term. VIZIO’s strategic pricing on larger TVs is expected to further enhance user engagement and boost ARPU in the coming quarters.
VIZIO Holding Corp. (NYSE:VZIO) balance sheet remains solid, with $335 million in cash and no debt, providing the company with the financial flexibility to continue investing in its growth strategies. Additionally, the company is exploring potential partnerships with other TV manufacturers, aiming to expand its operating system and open new revenue streams. With increasing consumer preference for streaming and the growing advertising market, VIZIO Holding Corp. (NYSE:VZIO) is well-positioned to capitalize on these trends. Looking ahead, the company expects further growth in its high-margin Platform+ revenue and remains confident in its product lineup and pricing strategies for the upcoming holiday season, making it a strong contender in the consumer electronics space.
05. Whirlpool Corporation (NYSE:WHR)
Number of Hedge Fund Holders: 24
Whirlpool Corporation (NYSE:WHR), a leading manufacturer of home appliances, has demonstrated resilience despite a challenging macroeconomic environment, as highlighted in its Q2 2024 earnings report. The company has successfully managed to drive sequential global margin expansion, showcasing its strong operational capabilities. Whirlpool reported an ongoing EBIT margin of 5.3%, reflecting a 100 basis point improvement compared to the previous quarter, a positive sign of the company’s margin recovery efforts.
A key driver behind this margin expansion has been Whirlpool Corporation (NYSE:WHR) strategic pricing actions in its North American market. These initiatives, announced earlier in the year, resulted in improved sell-through trends and helped mitigate the impact of weak discretionary demand caused by elevated mortgage rates and sluggish home sales. The company’s ability to maintain its market share and generate positive price mix in June 2024 is a testament to the strength of its brand portfolio, which includes well-known names like Whirlpool, Maytag, and KitchenAid.
Whirlpool Corporation (NYSE:WHR) international operations also performed well, particularly in Latin America and Asia, where the company continues to gain market share. These regions saw double-digit sales growth, contributing to the company’s overall financial stability. Additionally, Whirlpool’s cost management efforts, including the completion of its organizational simplification, are on track to deliver $300 million to $400 million in savings for the year, further supporting margin expansion.
Looking ahead, Whirlpool Corporation (NYSE:WHR) has revised its full-year EBIT margin guidance to 6%, down from 6.8%, but remains confident in achieving a strong exit rate of approximately 7.5% in Q4 2024. The company expects to deliver $12 in ongoing earnings per share this year, supported by new product launches and continued strength in its international business. Whirlpool Corporation (NYSE:WHR) robust cash flow generation of $500 million, alongside its commitment to returning value to shareholders through dividends and debt reduction, makes it a compelling investment opportunity. As the housing market eventually recovers, Whirlpool Corporation (NYSE:WHR) is well-positioned to capitalize on the demand rebound, driven by its innovation and strong product pipeline.
04. Sony Group Corporation (NYSE:SONY)
Number of Hedge Fund Holders: 29
At number five on our list of ten best consumer electonics stocks to buy stands Sony Group Corporation (NYSE:SONY). Sony Group Corporation (NYSE:SONY), a global leader in consumer electronics, develops and sells products across a variety of markets, including gaming consoles, televisions, and mobile devices. The company is known for its PlayStation gaming consoles and network services related to game and video content. Sony also offers a range of electronic equipment such as televisions, video and sound products, and digital cameras. In addition, Sony Group Corporation (NYSE:SONY) produces and distributes recorded music, live-action films, and animated series. Established in 1946 and headquartered in Tokyo, Japan, Sony Group Corporation (NYSE:SONY) remains a dominant force in both consumer electronics and entertainment industries worldwide.
Sony Group Corporation (NYSE:SONY) posted strong Q1 2024 results, surpassing earnings expectations and demonstrating robust growth across several key business segments. The company reported earnings per share (EPS) of $1.22, beating analysts’ expectations of $1.11, reflecting its strong fundamentals and operational efficiency. Total consolidated sales for the quarter increased by 12% year-on-year to 2.574 trillion yen, driven by favorable foreign exchange rates and increased sales in key segments such as music, gaming, and image sensors.
One of the highlights of the earnings call was the company’s upward revision of its full-year financial forecasts. Consolidated sales for FY 2024 are expected to increase by 2% to 12.610 trillion yen, with operating income projected to reach 1.310 trillion yen, a 35 billion yen increase from the previous forecast. Additionally, net income is forecasted to grow by 55 billion yen to 980 billion yen, indicating strong profitability across Sony’s diverse portfolio. The gaming and network services (G&NS) segment, a core driver of Sony’s revenue, saw a 12% year-on-year increase in sales to 864.9 billion yen, with operating income growing by 16 billion yen to 65.2 billion yen. This was fueled by increased sales of first-party software and the expanding PlayStation 5 user base, which reached 116 million monthly active users, the highest ever recorded. Sony Group Corporation (NYSE:SONY) strategic focus on premium services and higher average revenue per user (ARPU) for PlayStation Plus contributed to these impressive results.
In the imaging and sensing solutions (I&SS) segment, Sony Group Corporation (NYSE:SONY) experienced a 21% year-on-year sales growth, primarily due to strong demand for image sensors used in mobile devices. This growth trend is expected to continue, particularly in high-end smartphone markets like China, where larger sensors are gaining popularity. Overall, Sony Group Corporation (NYSE:SONY) strong financial performance, diversified revenue streams, and prudent management of its core businesses make it a compelling stock for investors looking for exposure to the consumer electronics sector. With continued growth in gaming, music, and image sensors, Sony is well-positioned to deliver solid returns moving forward.
03. Best Buy Co., Inc. (NYSE:BBY)
Number of Hedge Fund Holders: 37
Best Buy Co., Inc. (NYSE:BBY) is a major retailer of consumer electronics products in the U.S., Canada, and internationally. Its stores and online platforms offer a wide range of consumer electronics, including computing and mobile devices, smartwatches, and tablets. The company provides digital imaging products, portable audio devices like headphones and speakers, and smart home solutions. Best Buy Co., Inc. (NYSE:BBY) also features home theater systems, appliances, and entertainment products like drones and virtual reality gear. Additionally, it offers a variety of services such as delivery, installation, technical support, and repair through brands like Geek Squad, Best Buy Health, and Lively. Established in 1966 and headquartered in Richfield, Minnesota, Best Buy Co., Inc. (NYSE:BBY) continues to be a key player in consumer electronics retail.
Best Buy Co., Inc. (NYSE:BBY) delivered impressive results for Q2 2025, surpassing earnings expectations with reported EPS of $1.34, beating the forecast of $1.16. This robust performance underscores the company’s strong financial health and operational effectiveness. In the second quarter, Best Buy Co., Inc. (NYSE:BBY) demonstrated solid execution, reflected in a notable improvement in comparable sales, which declined by only 2.3% compared to the anticipated 3% drop and last quarter’s 6.1% decline. The company’s non-GAAP operating income rate reached 4.1%, surpassing the guidance of 3.5%, thanks to lower-than-expected selling, general, and administrative (SG&A) expenses. This represents a 30 basis points year-over-year expansion in the operating income rate, driven by a boost in gross profit margins from membership and service offerings.
The growth was particularly evident in the tablet and computing categories, which saw a 6% increase in comparable sales. Despite some declines in appliances, home theater, and gaming, the strong performance in high-demand categories and effective promotional strategies helped balance the overall sales trajectory. Best Buy Co., Inc. (NYSE:BBY) strategic use of promotional events, such as Black Friday in July, effectively drove consumer engagement and boosted sales during peak periods. Financial metrics further highlight Best Buy’s robust position. The company’s online sales maintained a steady 32% of domestic revenue, supported by efficient omnichannel operations that ensure rapid delivery and pickup options. The improved profitability from the membership program, alongside enhanced customer experiences and operational efficiencies, reinforces Best Buy’s market leadership.
Looking ahead, Best Buy Co., Inc. (NYSE:BBY) revised guidance for a 1.5% to 3% decline in annual sales, combined with an increased EPS range, reflects confidence in continued stability and growth. The company’s strategic priorities, including improved customer experiences, operational effectiveness, and disciplined capital allocation, position it well for sustained performance. In summary, Best Buy Co., Inc. (NYSE:BBY) strong Q2 results, solid financial metrics, and strategic initiatives make it a compelling choice among consumer electronics stocks. The company’s ability to adapt to market conditions and drive profitability through innovation and operational excellence reinforces its attractiveness for investors seeking stability and growth in the consumer electronics sector.
02. SharkNinja, Inc. (NYSE:SN)
Number of Hedge Fund Holders: 52
SharkNinja, Inc. (NYSE:SN) is a global technology company specializing in household appliances, operating under two brands: Shark and Ninja. Shark offers products like vacuums, robot cleaners, steam mops, air purifiers, and beauty tools. Ninja focuses on kitchen appliances, including cooking and beverage machines. Founded in 1997 by Mark Rosenzweig, the company is based in Needham, MA. SharkNinja, Inc. (NYSE:SN) delivered a standout performance in Q2 2024, significantly exceeding earnings expectations with an impressive EPS of $0.71 compared to the anticipated $0.59. This strong result highlights the company’s robust financial health and strategic execution. In Q2, SharkNinja, Inc. (NYSE:SN) reported an extraordinary 38% increase in adjusted net sales, building on the 20% growth from the previous year. This growth was purely organic and highly profitable. Notably, adjusted EBITDA surged by 48%, and earnings per share climbed by 51%. These metrics reflect the company’s successful initiatives in supplier diversification, competitive bidding, and value engineering, which collectively enhanced adjusted gross margins by nearly 600 basis points and improved adjusted EBITDA margins by 90 basis points.
The company’s growth was broad-based, with all four major product categories posting double-digit increases. The cleaning category led with a 20% growth, its strongest performance since the pandemic. SharkNinja, Inc. (NYSE:SN) domestic business accelerated remarkably, achieving a 35% increase, despite a relatively flat market. Internationally, the company excelled with a 46% rise in adjusted net sales, driven by triple-digit growth in emerging markets like Germany and France. SharkNinja, Inc. (NYSE:SN) strategic expansion into new product categories contributed significantly to its success. Recent innovations such as the Ninja SLUSHi and the Shark FlexBreeze have resonated strongly with consumers. The Ninja SLUSHi, for instance, became the fastest-selling new product ever on SharkNinja’s direct-to-consumer site, showcasing the company’s effective market entry and consumer appeal.
The company’s global footprint and brand presence are expanding rapidly. SharkNinja, Inc. (NYSE:SN) international operations are particularly noteworthy, with significant growth in EMEA and promising prospects in Latin America, including upcoming launches in Brazil. With a robust pipeline of new products and strategic marketing initiatives, SharkNinja, Inc. (NYSE:SN) is well-positioned for continued growth. The company’s commitment to innovation, coupled with its solid financial performance and expansion into new markets, makes it a compelling choice for investors seeking high-growth opportunities in the consumer electronics sector.
Ave Maria World Equity Fund stated the following regarding SharkNinja, Inc. (NYSE:SN) in its Q2 2024 investor letter:
“Top contributors to performance included SharkNinja, Inc. (NYSE:SN) and Taiwan Semiconductor Manufacturing Company Limited. SharkNinja, Inc. is a global product design and technology company focused on creating solutions that increase efficiency, convenience and enjoyment of consumers’ daily tasks and improve everyday lives. The company has built two billion-dollar brands, Shark and Ninja, and has a proven track record of establishing leadership positions by disrupting numerous household product categories, including cleaning, cooking, food preparation, home entertainment and beauty.”
01. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 184
Leading the list of our ten best consumer electronics stocks to buy is Apple Inc. (NASDAQ:AAPL). Apple Inc. (NASDAQ:AAPL) has once again demonstrated its resilience and market leadership by exceeding earnings expectations in Q3 2024. The company reported earnings per share (EPS) of $1.40, surpassing the anticipated $1.35. Apple’s robust performance was underpinned by its June quarter revenue, which hit a record high of $85.8 billion, a 5% increase from the previous year. This growth reflects the company’s ability to maintain strong market momentum despite global economic challenges.
A key driver of Apple Inc. (NASDAQ:AAPL) success is its diverse revenue streams, particularly in its services division. Services revenue set a new all-time record at $24.2 billion, marking a 14% year-over-year growth. This division, which includes Apple TV+, cloud services, and payment solutions, continues to gain traction, with over 1 billion paid subscriptions globally. The strong performance in services, with a gross margin of 74%, has significantly contributed to the company’s overall profitability.
In terms of products, Apple Inc. (NASDAQ:AAPL) iPhone revenue reached $39.3 billion, showing resilience despite a slight year-over-year decline. The installed base of iPhones hit a new all-time high, and the company is poised to benefit further from the upcoming iPhone 15 lineup and iOS 18. Mac revenue also grew by 2% to $7 billion, driven by strong demand for the M3-powered MacBook Air, particularly in emerging markets. The iPad segment witnessed remarkable growth, with revenue surging 24% year-over-year, reflecting the successful launch of the new iPad Pro and iPad Air models.
Apple Inc. (NASDAQ:AAPL) ability to innovate remains a cornerstone of its success. The integration of artificial intelligence (AI) through Apple Intelligence and the launch of the Vision Pro have sparked excitement among both consumers and enterprises. These developments not only showcase Apple’s technological prowess but also position the company for continued growth in emerging markets and new industries, such as spatial computing. With strong fundamentals, a diversified product and service portfolio, and a commitment to innovation, Apple Inc. (NASDAQ:AAPL) remains a top pick in the consumer electronics sector for long-term investors. The company’s strong financial position, with $153 billion in cash and a disciplined capital return program, further solidifies its bullish outlook.
Baron Technology Fund stated the following regarding Apple Inc. (NASDAQ:AAPL) in its Q2 2024 investor letter:
“The Fund’s chief relative detractor was Apple Inc. (NASDAQ:AAPL), even though it was a meaningful contributor to absolute performance, as we added to our Apple position significantly during the period. We bought Apple well, but in 20/20 hindsight we didn’t buy enough. Because Apple has an oversized weight in the Benchmark (its average weight was 15.7% for the period), when Apple’s stock outperforms (it appreciated 23.0%), it has generally been a headwind to relative performance. Our Apple underweight accounted for 33% of our relative underperformance for the period.
This quarter we increased the size of our position in Apple Inc., a leading technology company known for its innovative consumer electronics products like the iPhone, MacBook, iPad, and Apple Watch. Apple is a leader across its categories and geographies, with a growing installed base that now exceeds 2 billion devices globally. The company’s attached services – including the App Store, iCloud, Apple TV+, Apple Music, and Apple Pay – provide a higher margin, recurring revenue stream that both enhances the value proposition for its hardware products and improves the financial profile. Apple now has well over 1 billion subscribers paying for these services, more than double the number it had just 4 years ago. The increasing services mix has led to healthy operating margin improvement, providing more free cash flow for Apple to reinvest in the business and to distribute to shareholders. Throughout its 48-year history, Apple has successfully navigated and capitalized on major technological shifts, from PCs to mobile to cloud computing. We believe the company’s leading brand and device ecosystem position it to do equally well in the AI age, and this was the driver of our decision to re-invest. “Apple Intelligence” – the AI strategy unveiled at Apple’s recent Worldwide Developer Conference – leverages on-device AI and integrations with tools like ChatGPT to enhance user experiences across its ecosystem. The AI suite enables users to create new images, summarize and generate text, and use Siri to perform actions across their mobile applications, all while maintaining user privacy and security. We think Apple Intelligence can drive accelerated product upgrade cycles and higher demand for Apple services. The combination of growth re-acceleration, increasing services contribution, and thoughtful capital allocation should continue driving long-term shareholder value.”
While we acknowledge the potential of AAPL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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