12 Best Internet of Things Stocks To Buy According to Analysts

6. ADT Inc. (NYSE:ADT)

Analyst Upside Potential: 18.89%

ADT Inc. (NYSE:ADT) is a technology company that provides Internet of Things solutions for homes and businesses. Its offerings include Security Services, through burglar alarms, life safety alarms, smart security cameras, and video surveillance systems, Smart Home Automation, and Solar Solutions. On December 12, Morgan Stanley raised the price target on the stock from $8.5 to $9, while keeping its Equal Weight rating. The firm sees improving consumer credit and rebounding capital markets in 2025, therefore it is bullish on Business and Education Services companies.

During the fiscal third quarter of 2024, ADT Inc. (NYSE:ADT) reported a 5% increase in total revenue to $1.2 billion, driven by higher average prices and increased sales volume. The company also reached record-high monthly recurring revenue of $359 million, up 2%, benefiting from strong customer retention with gross revenue attrition at 12.8%. The company has launched its proprietary ADT+ platform across the US, offering enhanced smart home integrations and flexibility. Moreover, in August, ADT Inc. (NYSE:ADT) introduced a new feature that allows customers to grant secure access for package delivery or urgent issues like water leaks using various methods such as codes or biometric locks. It is set to announce its full-year results on February 27.

Ariel Fund stated the following regarding ADT Inc. (NYSE:ADT) in its Q2 2024 investor letter:

“Leading provider of automated security solutions ADT Inc. (NYSE:ADT) also traded up in the quarter. A top- and bottom-line earnings beat, highlighted by strong growth within the consumer and small business segment, low attrition, an improving payback period and margin expansion aided shares. Meanwhile, ADT sold its commercial business and is winding down its solar business to focus on profitability in the residential sector and pay down debt. We continue to believe ADT’s industry-leading brand and national presence, coupled with its Google and State Farm strategic partnerships, position it to be a prime beneficiary of growing demand for smart home technologies, including fully monitored residential security.”