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 Impinj, Inc. (NASDAQ:PI) 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).
A close-up of a computer engineer working on the code for a cloud connectivity platform.
Impinj, Inc. (NASDAQ:PI)
Analyst Upside Potential: 34.37%
Impinj, Inc. (NASDAQ:PI) is a company that specializes in developing Internet of Things (IoT) solutions. They use a technology called RAIN RFID to connect everyday items like clothes, car parts, luggage, and shipments to the internet. This allows businesses to track these items in real time, making it easier for them to manage inventory, monitor shipments, and optimize their operations.
Wasatch Micro Cap Value Strategy in its Q1 2024 investor letter, recognized Impinj, Inc. (NASDAQ:PI) as a pioneer in developing the Internet of Things (IoT), providing infrastructure for items like car parts and shipping containers to communicate over the internet. The fund noted that early in 2023, the company faced challenges due to a slowdown in platform deployments and chip orders. This was attributed to customers having stockpiled inventory due to fears of COVID-related supply chain disruptions. However, despite these challenges, the company has shown solid revenues and profitability that exceeded expectations recently.
During the fiscal fourth quarter of 2024, Impinj, Inc. (NASDAQ:PI) achieved its fourth consecutive year of double-digit revenue growth, setting a new annual record. This was driven by strong market demand in retail apparel, general merchandise, supply chain, and logistics. Looking ahead, the company expects solid RAIN label expansion driven by growth in retail apparel and supply chain logistics sectors. It is the best Internet of Things stocks to buy according to analysts.
Wasatch Micro Cap Value Strategy stated the following regarding Impinj, Inc. (NASDAQ:PI) in its first quarter 2024 investor letter:
“Impinj, Inc. (NASDAQ:PI), a pioneer in helping develop the “Internet of Things,” was also a contributor. The company provides an infrastructure by which items in storage or in transit—such as car parts and even shipping containers— communicate over the internet. Impinj deploys wireless inventory management and tracking platforms for customers in retail, manufacturing, health care and other areas. The company also provides tiny radio-frequency identification chips to connect, count and track individual items. Early in 2023, the stock fell due to a slowdown in platform deployments and chip orders. The slowdown occurred because customers had previously obtained extra inventory based on fears of Covid-related supply-chain disruptions. More recently, the stock has rebounded on reports of solid revenues and profitability that have exceeded expectations. Additionally, management has expressed optimism that Impinj’s long-term business opportunities remain intact. While our positive assessment of the company is unchanged, we sold some shares because we’ve learned from experience to trim our position on strength and add on weakness.”
Overall PI ranks 1st on our list of the best IoT stocks to buy according to analysts. While we acknowledge the potential of PI 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 PI 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.
