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 Emerson Electric Co. (NYSE:EMR) 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.
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Engineers analyzing a complex network of process control software and systems.
Emerson Electric Co. (NYSE:EMR)
Analyst Upside Potential: 15.53%
Emerson Electric Co. (NYSE:EMR) is a global technology and software company that provides innovative solutions across various industries, including industrial automation, climate control systems, and precision measurement instruments. It supports essential industries like oil and gas, power generation, chemicals, water treatment, HVAC systems (heating, ventilation, air conditioning), aerospace, and defense. The company also provides open-source IIoT platforms that support scalable analytics from device to enterprise levels.
The company has diversified its Climate control systems segment by acquiring an automated test and measurement company, called NI. It also owns 55% of the industrial software company AspenTech. On January 27, Emerson Electric Co. (NYSE:EMR) announced that it will acquire the remaining outstanding shares of AspenTech. The acquisition is part of Emerson’s broader portfolio transformation aimed at becoming a leading industrial technology company focused on automation and digital solutions.
Moreover, on February 6, Baird raised its target on the stock from $136 to $140, while keeping a Neutral rating on the stock. The firm left positive comments on Emerson Electric Co. (NYSE:EMR) stating that it is hitting its stride at just the right time. It is one of the best Internet of Things stocks to buy according to analysts.
Overall EMR ranks 8th on our list of the best IoT stocks to buy according to analysts. While we acknowledge the potential of EMR 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 EMR 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.
