Should IoT Investors Buy Alarm.com Stock?

This past year, we've methodically gone through each of the twelve themes we cover to decide which stocks and ETFs we want to hold in our own Nanalyze Disruptive Tech Portfolio. More recently, we've been exploring the Internet of Things (IoT) theme which is slim pickings. The only IoT ETF out there doesn't mesh well with our current portfolio, and there aren't many pure-play stocks aside from a handful we found in the smart home space. Alarm.com Stock and Smart Homes In our previous article on 4 Pure-Play Smart Home Stocks for IoT Investors, we talked about how there's plenty of growth left for smart homes. Only 16.66% of homes in the U.S. and Canada are smart homes, and that number falls off a cliff when you look outside North America. Of the four stocks we looked at, only one merits a closer look - Alarm.com (ALRM). Just days ago, Alarm.com set new 52-week highs as they released earnings which surpassed expectations. For someone who is thinking about starting to accumulate
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2 thoughts on “Should IoT Investors Buy Alarm.com Stock?

    1. Cheers for that Stan.

      Returns are always relative. If you bought Alarm.com on 1/1/2017, you’d be up +151% compared to a Nasdaq return of +117% over the same time frame. In that respect, you would have outperformed the market. Still, with companies like this we’re looking for holding periods measured in decades so their potential can mature – like a fine bottle of Opus One. This stock does appear to have some aging potential.

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