5 Best Consumer Electronics Stocks To Buy

In this article, we discuss 5 best consumer electronics stocks to buy. If you want to see more stocks in this selection, check out 10 Best Consumer Electronics Stocks To Buy. 

5. Whirlpool Corporation (NYSE:WHR)

Number of Hedge Fund Holders: 24

Whirlpool Corporation (NYSE:WHR) produces and sells a wide range of home appliances and associated products and services. The company’s offerings include refrigerators, freezers, ice makers, and refrigerator water filters. They also manufacture laundry appliances, such as washers and dryers, and cooking appliances, small domestic appliances, and dishwashers. The company operates in various regions worldwide, including North America, Europe, the Middle East, Africa, Latin America, and Asia. Whirlpool Corporation (NYSE:WHR) is one of the top consumer electronics stocks to invest in.

On April 24, Whirlpool Corporation (NYSE:WHR) reported a Q1 non-GAAP EPS of $2.66, beating Wall Street estimates by $0.49. Revenue over the period came in at $4.65 billion, outperforming market consensus by $150 million.

Goldman Sachs analyst Susan Maklari upgraded Whirlpool Corporation (NYSE:WHR) to Buy from Neutral with a price target of $160, down from $170 on April 11, noting that the current valuation of Whirlpool’s stock presents an attractive opportunity for investors.

According to Insider Monkey’s fourth quarter database, 24 hedge funds were bullish on Whirlpool Corporation (NYSE:WHR), with Edgar Wachenheim’s Greenhaven Associates holding the largest position in the company.

4. Sonos, Inc. (NASDAQ:SONO)

Number of Hedge Fund Holders: 27

Sonos, Inc. (NASDAQ:SONO) specializes in the creation, advancement, production, and sale of multi-room audio devices across the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Their product lineup encompasses wireless speakers, home theater speakers, components, and a range of relevant accessories. On February 8, Sonos, Inc. (NASDAQ:SONO) reported a FQ1 non-GAAP EPS of $0.79 and a revenue of $672.58 million, outperforming wall Street estimates by $0.20 and $92.28 million, respectively. It is one of the best consumer electronics stocks to invest in. 

According to Insider Monkey’s fourth quarter database, 27 hedge funds were long Sonos, Inc. (NASDAQ:SONO), compared to 24 funds in the prior quarter. Coliseum Capital is the largest stakeholder of the company, with 6.40 million shares worth over $108 million.

Here is what Aristotle Capital Management Small Cap Equity has to say about Sonos, Inc. (NASDAQ:SONO) in its Q1 2022 investor letter:

“Sonos (NASDAQ:SONO), a consumer electronics company with proprietary multi-room smart speaker technology, was added to the portfolio on the belief that strong consumer demand for the company’s differentiated product offering plus a multi-year pipeline of upcoming new product introductions are expected to drive shareholder value for the next several years.”

3. Sony Group Corporation (NYSE:SONY)

Number of Hedge Fund Holders: 28

Sony Group Corporation (NYSE:SONY) manufactures and markets electronic products, instruments, and devices for consumer, professional, and industrial markets. Their operations span across multiple regions, including Japan, the United States, Europe, China, and the Asia-Pacific region, among others. It is one of the best consumer electronics stocks to watch.

On April 28, Sony Group Corporation (NYSE:SONY) reported a Q4 GAAP EPS of ¥103.53 and a revenue of ¥3063.55 billion, up 35.3% on a year-over-year basis. In FY24, the company expects sales to reach ¥11.5 trillion. 

According to Insider Monkey’s fourth quarter database, 28 hedge funds were long Sony Group Corporation (NYSE:SONY), compared to 27 funds in the prior quarter. Mario Gabelli’s GAMCO Investors is the largest stakeholder of the company, with 1.6 million shares worth $123.5 million. 

Aristotle Capital made the following comment about Sony Group Corporation (NYSE:SONY) in its Q3 2022 investor letter:

“Sony Group Corporation (NYSE:SONY), the global provider of video games and consoles, image sensors, and music, as well as movies, was a major detractor for the period. The share price of the company has struggled this year following its strong performance in 2021. Signs of a slowdown in the gaming industry (as people seem inclined to take on outdoor activities as pandemic fears have subsided), combined with sales of its PlayStation 5 that have been held up by a global parts shortage, have led to gaming‐related software sales falling more than 20% year‐over‐year. Rather than focusing on short‐term demand dislocations, we focus on the company’s ability to continue migrating videogame users toward the firm’s subscription offerings, as well as its capacity to leverage content across its video, music and gaming platforms. We are also impressed with the expansion of Sony’s Music segment, which has been supported by the pervasiveness of streaming services. Management’s ongoing work to improve the company’s TV and film studios is bearing fruit as well, with sales growing 67% year‐over‐year for its Pictures segment as its regional strategy has taken hold, including recent progress made toward solidifying a merger plan with India‐based Zee Entertainment. All of this is to say we remain excited by the oligopolistic nature of the businesses Sony operates in, and the future prospects for the company given its leadership in image sensors, music publishing and gaming consoles.”

2. Best Buy Co., Inc. (NYSE:BBY)

Number of Hedge Fund Holders: 33

Best Buy Co., Inc. (NYSE:BBY) is a retail company that specializes in selling technology products in the United States and Canada. The company’s stores offer a wide range of products, including computers, mobile phones, networking devices, tablets, smartwatches, and consumer electronics. The consumer electronics category includes items like digital cameras, health and fitness products, home theater systems, portable audio devices such as headphones and speakers, as well as smart home products. Best Buy Co., Inc. (NYSE:BBY) is one of the premium consumer electronics stocks to invest in.

As per Loop Capital analyst Anthony Chukumba, their quarterly pricing study reveals that the price difference between products sold at Best Buy Co., Inc. (NYSE:BBY) and Amazon has increased to an average of 2.1% from 0.9% in December. Chukumba mentioned that despite this widening gap, Best Buy Co., Inc. (NYSE:BBY)’s prices are still very competitive. While the analyst has some concerns about Best Buy’s short-term performance, he maintains a positive outlook on the company’s long-term prospects. Loop Capital reiterated a Buy rating on Best Buy Co., Inc. (NYSE:BBY) shares and set a price target of $110 on March 21.

According to Insider Monkey’s fourth quarter database, 33 hedge funds were bullish on Best Buy Co., Inc. (NYSE:BBY), compared to 31 funds in the earlier quarter. Ken Griffin’s Citadel Investment Group is the biggest position holder in the company.

1. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 135

Apple Inc. (NASDAQ:AAPL) is a global company that specializes in the design, production, and marketing of various technology products. Their product portfolio includes smartphones, personal computers, tablets, wearables, and accessories. In addition, they offer home entertainment devices such as Apple TV, Beats products, and the HomePod. Apple Inc. (NASDAQ:AAPL) is one of the premier consumer electronics stocks to invest in. 

On April 26, Deutsche Bank increased its price target for Apple Inc. (NASDAQ:AAPL) from $160 to $170 and maintained a Buy rating on the company’s shares. The analyst predicts that Apple Inc. (NASDAQ:AAPL)’s fiscal Q2 results will align with market expectations, with the success of the iPhone compensating for some weaknesses in other areas. Looking ahead to Q3, the firm anticipates a possible decrease in Products revenue compared to estimates, but also foresees improved profit margins due to lower component costs, resulting in earnings that meet expectations. Deutsche Bank believes that investors are drawn to Apple Inc. (NASDAQ:AAPL) due to its reliable earnings and robust financial position, especially during uncertain economic conditions.

According to Insider Monkey’s fourth quarter database, Apple Inc. (NASDAQ:AAPL) was part of 135 hedge fund portfolios, compared to 140 in the prior quarter. Warren Buffett’s Berkshire Hathaway is the largest stakeholder of the company. 

L1 Long Short Fund made the following comment about Apple Inc. (NASDAQ:AAPL) in its Q1 2023 investor letter:

“Apple Inc. (NASDAQ:AAPL) (Short +27%) shares rose over the quarter with mega-cap technology stocks rallying as volatility in the banking sector led to investors crowding into stocks perceived as more defensive and liquid. We continue to see risks to Apple’s earnings as demand weakens for its key products and in particular its flagship iPhone 14 device. Despite having a fantastic brand and loyal customer base, we believe the company has benefited significantly from a one-off pull forward of demand through the COVID-19 lockdown period, which we expect will start to normalize over the next 2-3 quarters.

The lockdown period delivered a huge windfall to Apple as a combination of work/study from home conditions and government stimulus fuelled a surge in purchases of its key products. During this period, Apple also benefitted from the launch of two of its most important products (5G iPhone 12 and Apple Silicon MacBook), along with significant market share gains in China. This drove a spike in net profit from a broadly flat range of US$50-60b p.a. between FY15 to FY20 to ~US$100b in FY22. We believe tougher economic conditions, a less exciting new product line-up and input cost pressures will weigh on Apple’s ability to meet/exceed consensus earnings expectations in 2023 (which assume solid earnings growth from an inflated base). Apple shares are currently trading around ~$165/share, compared to around $80/share pre-COVID.”

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