In this article, we discuss 5 smart home technology stocks to buy today. If you want our detailed analysis of these stocks, go directly to 10 Smart Home Technology Stocks To Buy Today.
5. Johnson Controls International plc (NYSE:JCI)
Number of Hedge Fund Holders: 42
Johnson Controls International plc (NYSE:JCI) is an Irish multinational conglomerate that offers climate control, facility management, and fire alarm and suppression for residential and commercial buildings.
On February 2, Johnson Controls International plc (NYSE:JCI) reported its Q4 financial results. The company posted earnings per share of $0.54, beating estimates by $0.01. The $5.86 billion revenue surpassed market consensus by $75.10 million.
Mizuho analyst Brett Linzey on February 3 set an $88 price target on Johnson Controls International plc (NYSE:JCI) and kept a Buy rating on the shares post the fiscal Q1 results. Johnson Controls International plc (NYSE:JCI) continues to make progress on the various commercial initiatives taking place across the organization, the analyst told investors in a research note.
In the fourth quarter of 2021, 42 hedge funds were long Johnson Controls International plc (NYSE:JCI), with combined stakes valued at $1.2 billion. Holocene Advisors held the largest stake in Johnson Controls International plc (NYSE:JCI) as of December 2021, with roughly 3.2 million shares worth $267.5 million.
Here is what Oakmark Global Fund has to say about Johnson Controls International plc (NYSE:JCI) in its Q4 2021 investor letter:
“Our U.S. final sale was Johnson Controls, a leading global supplier of fire detection and HVAC (heating, ventilation and air conditioning) systems. We originally purchased the shares believing that the new management team had the potential to improve profit margins meaningfully. Management has made progress on this goal, but part of this progress must be attributed to Covid-19. The pandemic inspired building owners to invest aggressively in new air handling and filtration systems, a Johnson Controls specialty. Management also executed a well-timed portfolio transaction, selling the company’s traditional car battery business for a good price before the trend favoring automotive electrification became dominant. The company’s stock has performed well over the past year, and we sold the Fund’s shares to reinvest in undervalued holdings.”
4. Honeywell International Inc. (NASDAQ:HON)
Number of Hedge Fund Holders: 51
Honeywell International Inc. (NASDAQ:HON) is an American multinational conglomerate that has a dedicated unit to smart home technology, namely Home and Building Control, and provides heating, cooling, security, lighting, and smart appliances. Honeywell International Inc. (NASDAQ:HON) published its Q4 results on February 3, posting earnings per share of $2.09, exceeding estimates by $0.01.
UBS analyst Markus Mittermaier on February 15 lowered the price target on Honeywell International Inc. (NASDAQ:HON) to $220 from $237 after its Q4 earnings and below-consensus guidance but kept a Buy rating on the shares and anticipates potential upside from current levels.
On February 11, Honeywell International Inc. (NASDAQ:HON) declared a $0.98 per share quarterly dividend, in line with previous. The dividend is payable on March 11, to shareholders of record on February 25.
The company management announced on February 3 that despite a challenging supply chain situation, Honeywell International Inc. (NASDAQ:HON) has great projects that will generate returns for investors.
In Q4 2021, 51 hedge funds in the database of Insider Monkey were bullish on Honeywell International Inc. (NASDAQ:HON), up from 45 funds in the prior quarter. D E Shaw held the biggest position in Honeywell International Inc. (NASDAQ:HON), with 1.6 million shares worth $342.4 million.
Here is what ClearBridge Investments has to say about Honeywell International Inc. (NASDAQ:HON) in its Q1 2021 investor letter:
“The portfolio’s quality bias and valuation discipline have generated compelling returns over time with typically strong relative results in more challenging environments as it did through the first three quarters of 2020. However, that same quality bias tends to create a more challenging relative performance environment for the Strategy during periods of sharp economic acceleration, which tend to benefit stocks that are more commodity linked or of lower quality. This has been the case during the vaccine- and stimulus-driven rally experienced late last year and during the most recent quarter. Sectors that lagged in the quarter included industrials, Honeywell also lagged in the quarter after previously generating strong returns over extended periods.”
3. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 134
Apple Inc. (NASDAQ:AAPL)’s primary contribution to smart home technology is HomeKit, which enables users to control smart home appliances using Apple devices. Via a communication protocol, HomeKit allows for the integration and operation of multiple smart home accessories.
On January 27, Apple Inc. (NASDAQ:AAPL)’s Q4 results were published, with the company posting earnings per share of $2.10, beating estimates by $0.21. The $123.95 billion revenue also outperformed consensus estimates by $5.41 billion.
Apple Inc. (NASDAQ:AAPL) declared on January 27 a $0.22 per share quarterly dividend, in line with previous. The dividend was distributed on February 10, to shareholders of record on February 7.
Tigress Financial analyst Ivan Feinseth raised the price target on Apple Inc. (NASDAQ:AAPL) on February 15 to $210 from $198 and reiterated a Strong Buy rating on the shares following the company’s reported “record” Q1 results. The analyst believes further upside in the shares exists due to strong product demand, new product introductions, and accelerating services revenue, observing that his target represents a potential return of close to 25% from current levels.
Berkshire Hathaway held the leading Apple Inc. (NASDAQ:AAPL) stake in Q4 2021, with more than 887 million shares worth $157.5 million. Overall, hedge fund sentiment increased around Apple Inc. (NASDAQ:AAPL) in the fourth quarter, as 134 funds held long positions in the company, up from 120 funds a quarter earlier.
Here is what Alger Spectra Fund has to say about Apple Inc. (NASDAQ:AAPL) in its Q4 2021 investor letter:
“Apple is a leading technology provider in telecommunications, computing and services. Apple’s iOS operating system is the company’s unique intellectual property and competitive strength. This software drives tight engagement with consumers and enterprises, fostering the growing purchases of high-margin services like music, apps and Apple Pay. Apple’s quarterly earnings exceeded street estimates on strong margin realization driven by a sales mix of more profitable services. The margin strength was even more impressive given significantly higher freight costs and supply constraints that prevented approximately $6 billion in revenue realization.”
2. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 158
Alphabet Inc. (NASDAQ:GOOG)’s subsidiary, Google Nest, provides a range of smart home products including smart speakers, streaming devices, smoke detectors, and security systems.
Publishing its Q4 earnings report on February 1, Alphabet Inc. (NASDAQ:GOOG) posted an EPS of $30.69, surpassing estimates by $3.41. Revenue over the period jumped 32.39% year-on-year to $75.33 billion, outperforming estimates by $3.50 billion.
On February 2, Stifel analyst Scott Devitt raised the price target on Alphabet Inc. (NASDAQ:GOOG) to $3,500 from $3,200 and kept a Buy rating on the shares after the company reported what he called “another strong quarter”, with revenue and operating income approximately 4% ahead of Street estimates.
Elite hedge funds held large stakes in Alphabet Inc. (NASDAQ:GOOG) in Q4 2021. The fourth quarter database of Insider Monkey indicated that 158 hedge funds were bullish on Alphabet Inc. (NASDAQ:GOOG), up from 156 funds in the prior quarter. TCI Fund Management held one of the leading stakes in Alphabet Inc. (NASDAQ:GOOG), with 2.95 million shares worth $8.5 billion.
Here is what Polen Focus Growth has to say about Alphabet Inc. (NASDAQ:GOOG) in its Q4 2021 investor letter:
“For the full year, the top performers included Alphabet. Alphabet’s business continues to compound at what we believe to be a healthy rate. The company reported a 40% increase in third-quarter revenues year over year and likely earned approximately $70 billion in incremental revenue in 2021.”
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 279
Amazon.com, Inc. (NASDAQ:AMZN)’s Echo smart speakers can control several smart devices, acting as a home automation hub, using the company’s intelligent personal assistant service Alexa.
On February 3, Amazon.com, Inc. (NASDAQ:AMZN) declared its Q4 results, posting earnings per share of $27.75, exceeding estimates by $24.09. The $137.41 billion revenue gained 9.44% year-over-year.
Tigress Financial analyst Ivan Feinseth raised the price target on Amazon.com, Inc. (NASDAQ:AMZN) on February 18 to $4,655 from $4,460 and kept a Buy rating on the shares. Amazon.com, Inc. (NASDAQ:AMZN) overcame fears that the company was headed for a slowdown by reporting “record results”, driven by a strong holiday quarter. The analyst sees Amazon.com, Inc. (NASDAQ:AMZN) continuing to benefit from “powerful growth drivers” that include Amazon Prime and AWS cloud growth, and building on its strong growth momentum in 2022.
Hedge fund sentiment was bullish around Amazon.com, Inc. (NASDAQ:AMZN) in Q4 2021, as the number of long positions held by elite funds in the company increased to 279 from 242 in the prior quarter. Fisher Asset Management held a $7.2 billion stake in Amazon.com, Inc. (NASDAQ:AMZN), and is one of the leading shareholders of the company.
Here is what Polen Focus Growth has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2021 investor letter:
“Amazon has lagged over the past year and a half. The company now must surpass the substantial revenue windfall it achieved in 2020 while also managing supply chain disruptions, wage inflation, and investments to further distance itself from its competition and serve heightened demand. We feel these headwinds are short-term and transitory. Amazon’s first-party ecommerce business is a low (actually negative) margin business, and these short-term investments and inefficiencies are pushing it further into the red. However, the now large, faster-growing, higher-margin businesses like Amazon Prime, AWS, and advertising should allow margins to move much higher over time.
Our view of long-term growth and margin expansion potential for Amazon remains unchanged, and the valuation has only become more attractive. According to our research, if our expectations for free cash flow growth over the next five years materialize, then Amazon has the potential to deliver among the highest returns across our Focus Growth portfolio. It is now our second-largest position, just behind Alphabet.”
You can also take a look at 10 Best AI Stocks for 2022 and 10 Metaverse Stocks to Invest In.
