1. Impinj, Inc. (NASDAQ:PI)
Analyst Upside Potential: 34.37%
Impinj, Inc. (NASDAQ:PI) is a company that specializes in developing Internet of Things (IoT) solutions. They use a technology called RAIN RFID to connect everyday items like clothes, car parts, luggage, and shipments to the internet. This allows businesses to track these items in real time, making it easier for them to manage inventory, monitor shipments, and optimize their operations.
Wasatch Micro Cap Value Strategy in its Q1 2024 investor letter, recognized Impinj, Inc. (NASDAQ:PI) as a pioneer in developing the Internet of Things (IoT), providing infrastructure for items like car parts and shipping containers to communicate over the internet. The fund noted that early in 2023, the company faced challenges due to a slowdown in platform deployments and chip orders. This was attributed to customers having stockpiled inventory due to fears of COVID-related supply chain disruptions. However, despite these challenges, the company has shown solid revenues and profitability that exceeded expectations recently.
During the fiscal fourth quarter of 2024, Impinj, Inc. (NASDAQ:PI) achieved its fourth consecutive year of double-digit revenue growth, setting a new annual record. This was driven by strong market demand in retail apparel, general merchandise, supply chain, and logistics. Looking ahead, the company expects solid RAIN label expansion driven by growth in retail apparel and supply chain logistics sectors. It is the best Internet of Things stocks to buy according to analysts.
Wasatch Micro Cap Value Strategy stated the following regarding Impinj, Inc. (NASDAQ:PI) in its first quarter 2024 investor letter:
“Impinj, Inc. (NASDAQ:PI), a pioneer in helping develop the “Internet of Things,” was also a contributor. The company provides an infrastructure by which items in storage or in transit—such as car parts and even shipping containers— communicate over the internet. Impinj deploys wireless inventory management and tracking platforms for customers in retail, manufacturing, health care and other areas. The company also provides tiny radio-frequency identification chips to connect, count and track individual items. Early in 2023, the stock fell due to a slowdown in platform deployments and chip orders. The slowdown occurred because customers had previously obtained extra inventory based on fears of Covid-related supply-chain disruptions. More recently, the stock has rebounded on reports of solid revenues and profitability that have exceeded expectations. Additionally, management has expressed optimism that Impinj’s long-term business opportunities remain intact. While our positive assessment of the company is unchanged, we sold some shares because we’ve learned from experience to trim our position on strength and add on weakness.”
While we acknowledge the potential of Impinj, Inc. (NASDAQ:PI) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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