In this article, we discuss 8 best lidar stocks to buy now. If you want to skip our industry analysis you can see the 5 Best Lidar Stocks To Buy here.
One of the most interesting technological developments of the 21st century, lidar is a shorthand for “light detection and ranging,” and comprises of micro electro mechanical systems (MEMS) scanner that provides a precise and accurate depiction of 3D landscape models. Lidar bounces lasers off objects at extremely high rates—millions of pulses every second—to generate three-dimensional images of its surroundings. The ability to ‘see’ physical assets clearly in 3D gives it an edge over competing technologies such as radars and cameras. Used in a wide range of applications, including seismology, archeology, geomorphology and physics, a lidar system enables mapping professionals and scientists to study man-made and natural environments with high precision and flexibility, hence why the technology’s importance has been propelled in recent years. For instance, the National Oceanic and Atmospheric Administration (NOAA), makes use of lidar systems to generate accurate shoreline maps, monitor weather conditions, assist under emergency response missions, and create digital elevation models that can be used in geographic information systems.
While the emergence of the COVID-19 pandemic caused many industrial verticals to cease operations due to stringent lockdown measures, the lidar industry continued to witness progress, as several manufacturers repurposed their 3D lidar systems for product tracking, security, and monitoring employee behavior and distance remotely. Additionally, lidars, along with video and thermal monitoring systems, were used to remotely measure the temperatures of employees and avoid manual temperature scanning to improve productivity, whilst significantly reducing the risk of viral transmission.
The industry itself has been on financial experts’ radar for some time, but it’s only recently that they’ve truly paid more attention to them. This change is not without a trigger: the auto industry is becoming more intentional with its designs as they focus more on shifting towards fully autonomous, self-driving cars and electric vehicles, alongside the use of robotics to speed up manufacturing and production. Additionally, the global lidar market is being augmented by the increasing use of lidar systems in UAVs, engineering and construction applications, as well as in geographical information systems (GIS) applications, alongside the emergence of 4D LiDAR and the loosening of regulations surrounding the use of commercial drones in various applications. Back in 2021, laser scanners accounted for the largest part of the market, and it is anticipated that the laser scanners segment will continue to retain this dominant position for the coming decade. The widespread use of laser scanners that are capable of transmitting and detecting information by making use of laser pulses is the primary cause that is contributing to this expansion.
According to a report by GrandViewResearch, the global lidar market size was valued at $1.81 billion in 2021, and is expected to expand at a compound annual growth rate (CAGR) of 9.8% from 2022 to 2030. The growth of the segment is also expected to continue for the next few years owing to the increasing adoption of aerial mapping devices. The overall market for lidar was led by North America as of the year 2021, followed by Europe and the Asia Pacific region in that order. The region accounted for more than 37% of the total revenue generated by the worldwide market in 2021 and is predicted to experience robust expansion growth during the forecast period. The ongoing research and expenditures that are being made in order to build sophisticated lidar systems have been critical in pushing the uptake of lidar systems in North America. On the other side, it is projected that Asia Pacific region should record the largest amount of growth during the period of time spanning from 2022 to 2030, while demand from nations such as India and China would play a significant role in expanding the lidar market.
Such emerging trends will continue to surprise the lidar sector, and to an extent, other associated sectors as well. Investors looking to make profit from their investments would do well not to ignore this steadily growing technology. Thus, this article will discuss some of the best lidar stocks to buy in this context, including Velodyne Lidar, Inc. (NASDAQ:VLDR), Luminar Technologies, Inc. (NASDAQ:LAZR), and Ouster, Inc. (NYSE:OUST), among others listed below.
Our Methodology
Some of the top companies that operate in the lidar industry were selected for the list. In order to provide readers with some context for their investment choices, the business fundamentals and analyst ratings for the stocks are also discussed. Data from around 895 elite hedge funds tracked by Insider Monkey in the second quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.
You have to keep in mind that this is an emerging technology, and it may be completely replaced by a superior technology at a future point. Even though we present the best lidar stocks to buy according to hedge funds in this article, they may not be the best stocks to buy in the market or the automotive industry. You can check out our article about the best auto stocks to buy here.
8 Best Lidar Stocks To Buy Now
8. MicroVision, Inc. (NASDAQ:MVIS)
Number of Hedge Fund Holders: 4
MicroVision, Inc. (NASDAQ:MVIS) is a Redmond-based technology company that develops laser scanning and lidar technology for projection, 3D sensing, and image capture. A pioneer in MEMS-based laser beam scanning technology, the company integrates optics, hardware, algorithms, and machine learning software into its proprietary systems.
On October 11, MicroVision, Inc. (NASDAQ:MVIS) announced a successful milestone as it began delivering samples of its MAVIN DR dynamic view lidar system, fulfilling sales to OEMs and Tier 1 suppliers. The company’s lidar sensor features a dynamic field of view, and is now available worldwide for sample sales to OEMs and other potential customers.
MicroVision, Inc. (NASDAQ:MVIS)’s largest investor in our database is Daniel S. Och’s Sculptor Capital which owns 572,200 shares that are worth $2.1 million. Overall, 4 hedge fund’s in our database reported holding stakes in the technology company at the close of the second quarter of 2022.
Alongside Velodyne Lidar, Inc. (NASDAQ:VLDR), Luminar Technologies, Inc. (NASDAQ:LAZR), and Ouster, Inc. (NYSE:OUST), MicroVision, Inc. (NASDAQ:MVIS) ranks among the best lidar stocks to buy.
7. Cepton Inc. (NASDAQ:CPTN)
Number of Hedge Fund Holders: 8
Cepton Inc. (NASDAQ:CPTN), a California-based company, provides state-of-the-art, intelligent, lidar-based solutions for a range of markets such as automotive (ADAS/AV), smart cities, smart spaces and smart industrial applications.
Earlier this October, Cepton Inc. (NASDAQ:CPTN) announced that it had entered into a binding investment agreement for a $100 million investment from its long-term automotive Tier 1 partner and current shareholder, Koito Manufacturing . The investment will be used to fund Cepton’s next stage of growth as it scales its lidar solutions for mass deployment.
On August 8, Cepton Inc. (NASDAQ:CPTN) posted earnings for the second quarter of 2022, reporting a GAAP EPS of $0.01, surpassing market expectations by $0.11. The revenue over the period was $2.56 million, beating estimates by $384,000.
JPMorgan analyst Samik Chatterjee initiated coverage of Cepton Inc. (NASDAQ:CPTN) with a Neutral rating and no price target on September 20. While the company is an advanced driver-assistance system leader, the analyst states that he is cautious around its sustainability of growth as focus turns to L3 applications. The Neutral rating balances the upside from a robust ramp in adoption of ADAS functionalities, leveraging its lidar technologies.
At the close of the second quarter of 2022, Cepton Inc. (NASDAQ:CPTN) was spotted on 8 investment portfolios. The combined stakes of these funds in the company amounted to $5.84 million.
6. Quanergy Systems Inc. (NYSE:QNGY)
Number of Hedge Fund Holders: 9
Quanergy Systems Inc. (NYSE:QNGY) is a publicly held Silicon Valley-based technology company that develops lidar sensors and perception software for real-time capture and processing of 3D spatial data and object detection, tracking, identification and classification. Founded in 2012, its products are used in various applications, such as mapping, security, smart city and smart spaces, industrial automation, and transportation applications.
On September 7, Quanergy Systems Inc. (NYSE:QNGY) announced that the company is integrating it’s M-Series lidars and QORTEX DTC 3D perception software with Hanwha’s Techwin’s video management software, Wisenet WAVE VMS. With the company’s 3D lidar solutions integrated into Wisenet WAVE VMS, Hanwha customers will be able to make use of advanced sensing capabilities to increase the coverage, dramatically reduce false alarms rates and reduce the operational cost of physical security deployments.
Earlier this August, Quanergy Systems Inc. (NYSE:QNGY) announced that Prime Secured will use Quanergy’s products and software to provide its customers with greater physical security and flow management capabilities. Since the Nebraska-based company is looking to expand into new industries, Prime Secured has placed a multi-million dollar order with Quanergy Systems Inc. (NYSE:QNGY) that will begin with a deployment at a major casino.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm Marshall Wace LLP is a leading shareholder in Quanergy Systems Inc. (NYSE:QNGY) with 497,809 shares. Overall, 9 hedge funds reported holding stakes in the company at the close of the second quarter of 2022.
Much like Velodyne Lidar, Inc. (NASDAQ:VLDR), Luminar Technologies, Inc. (NASDAQ:LAZR), and Ouster, Inc. (NYSE:OUST), Quanergy Systems Inc. (NYSE:QNGY) is can be an attractive pick for investors looking to reap the rewards from the lidar industry.
Click to continue reading and see 5 Best Lidar Stocks To Buy Now.
Suggested Articles:
- 11 Best Mineral Stocks To Buy Now
- 12 Best Momentum Stocks To Invest In
- 11 Safe Stocks To Buy According To Hedge Funds
Disclosure. None. 8 Best Lidar Stocks To Buy Now is originally published on Insider Monkey.
