We recently compiled a list of the 12 Best Internet of Things Stocks To Buy According to Analysts. In this article, we are going to take a look at where Belden Inc. (NYSE:BDC) stands against the other IoT stocks.
Trends and Outlook for The Internet of Things Industry
According to the IOT analytics, 2024 was a poor year for the Internet of Things sector, particularly due to the headwinds from the hardware sector. As per the report published on January 15, many IoT-centric industries experienced stunted year-over-year growth. The industrial software market grew 12% year-over-year, slightly slower than the growth in 2023, whereas the industrial hardware industry experienced market declines. However, despite the slowdown the number of IoT connected devices grew around 13% year-over-year, surpassing 18 billion. In addition, the expertise spending related to IoT also increased by 10% year-over-year to reach $298 billion in 2024. The report also highlighted that the discussion on IoT remained high among leading CEO’s of the technology industry. The public relevance of the term Internet of Things remained within 30% of its all-time high in 2022.
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Moreover, another report by McKinsey & Company states that IoT can offer significant economic value potential. The report highlights that IoT can unlock $5.5 trillion to $12.6 trillion in economic value by consumer IoT products and services. McKinney & Company predicts that the most economic value of the technology will come from its deployment in industrial environments including manufacturing, health care, and other areas. Factory setting is expected to be the largest beneficiary by generating around $1.4 trillion to $3.3 trillion by 2030, or 26% of the total value. Lastly, the perceived value of IoT, the technological advancements, and the emergence of 5G in Networking are anticipated to be the prominent tailwinds for the sector.
Our Methodology
To compile the list of the 12 best Internet of Things stocks to buy according to analysts we used the Global X Internet of Things ETF. Using the ETF we aggregated a list of IoT stocks with positive analyst upside potential (at least 10%), sourced from CNN. Lastly, we ranked the stocks in ascending order of the analyst upside potential. Please note that the data was retrieved on Monday, 17th February, 2025.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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Belden Inc. (NYSE:BDC)
Analyst Upside Potential: 20.96%
Belden Inc. (NYSE:BDC) is a global company that specializes in designing, manufacturing, and distributing network infrastructure and digitization solutions. It operates through Enterprise Solutions and Industrial Automation Solutions segments. Enterprise Solutions focuses on providing network infrastructure and broadband solutions for commercial applications such as audio/video systems, security, data centers, and wireless services. Whereas, the Industrial Automation Solutions segment provides network infrastructure to support industrial automation by enabling the acquisition, transmission, organization, and management of data.
On February 10, David Williams, an analyst from Benchmark Co. reiterated a Buy rating on the stock, while maintaining the price target of $130. The analyst noted that Belden Inc. (NYSE:BDC) has shown continued performance improvements, which support the positive outlook. Moreover, the demand for its products remains optimistic, driven by stable demand drivers and strengthening sectors where the company operates. Williams also likes the strategic shift towards offering solutions aligns well with secular themes like stronger domestic manufacturing, which is expected to drive substantial fundamental improvements.
In addition, Polen U.S. Small Company Growth Strategy in its Q4 2024 investor letter announced initiating a position in Belden Inc. (NYSE:BDC). The firm noted that its Solutions Transformation Strategy allows margin expansion and a recurring revenue model. Moreover, the firm also likes the mid-single-digit annual revenue growth and EPS growth of 10% to 12% projected through 2028. It is one of the best Internet of Things stocks to buy according to analysts.
Polen U.S. Small Company Growth Strategy stated the following regarding Belden Inc. (NYSE:BDC) in its Q4 2024 investor letter:
“During the quarter, we initiated positions in four new investments: Willscot Holdings, Trex, Fabrinet, and Belden Inc. (NYSE:BDC). We also added to several existing positions.
Finally, we started a new position in Belden as it is transforming into a solutions-driven leader in networking, connectivity, and security, focused on high-growth sectors like industrial automation, broadband services, and data centers. Its Solutions Transformation Strategy enables margin expansion, deeper customer relationships, and recurring revenue models, with a mid-single-digit annual revenue growth target and 10%-12% EPS growth through 2028. Belden’s strong balance sheet and disciplined management create additional upside opportunities.”
Overall BDC ranks 4th on our list of the best IoT stocks to buy according to analysts. While we acknowledge the potential of BDC as an investment, 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 BDC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
