Buy Into Internet of Things’ $1 Trillion Future (Top-Rated DGII Stock)

Every day, I am amazed at what my smartwatch can achieve.

It keeps track of all kinds of information: current stock market conditions, training, weather … everything is in this little device on my wrist.

Remember that relic of the past?

It’s very far from my childhood mandatory device: a Casio calculator watch.

My smartwatch works within the Internet of Things (IoT). It sends and receives thousands of data points because it is connected to the internet 24/7 … either via Wi-Fi or cellular data connection.

With the help of chief investment strategist Adam Odel the proprietary of six stock ratings, I found “Strong bulls” Shares that provide IoT products and services worldwide:

  • It has just reported record quarterly revenue of $ 95 million.
  • The stock reached a 52-week high in early June.
  • We expect it to beat the market 3 times over the next 12 to 24 months.

This is why this IoT stock I share with you today will continue its strong performance well into the future.

The Internet of Things market continues to grow

IoT consists of physical objects that connect and exchange data with other devices or systems over the Internet.

Sensors are located in cars, lights, refrigerators and countless other devices. These sensors allow each device to “talk” to other devices on the network.

And the market for this innovative technology is expanding rapidly:

The chart above shows the annual revenues of the IoT market worldwide by 2030.

IoT’s global annual revenue was $ 440.9 billion in 2021. It is expected to double to $ 1.1 trillion by 2030!

The Bottom Line: With extraordinary growth like this, companies producing IoTs will expand rapidly.

Amazing IoT growth in one stock: Digi International Inc.

Your refrigerator or smartwatch requires special sensors to communicate with the Internet and other devices.

It’s where Digi International Inc. (NASDAQ: DGII) Kicks. The Minnesota-based company manufactures mobile modules that connect IoT sensors to the Internet.

The company recently unveiled it Digi IX30 Mobile Router, Which can survive in the harshest environments. This is the perfect solution for flooring and appliances that need to be outdoors.

Even in today’s rugged technology market, DGII has strong revenue growth:

In 2020, DGII’s total annual revenue totaled $ 254.2 million. It grew 32.7% to $ 337.2 million in 2021.

By 2023, the company’s annual revenue is estimated to jump to $ 415.3 million – An increase of 63.4% compared to 2020!

Now, let’s look at the performance of this IoT stock.

New DGII Touches of 52 weeks

In the last 12 months, DGII stock has risen 38.4% from the 52-week low in May 2022 to a high in early June.

Despite the recent slowdown due to broader counter-winds in the market, the stock is still trading more than $ 2 above the simple 50-day moving average.

And DGII continues to outperform its communications equipment industry – a 3.1% increase over those 12 months.

Digi International Inc Stock Rating

Using a six-factor stock rating system, Digi International Inc Stock 83 in total.

That means we are “strong bulls” in the stock and expect it to beat the wider market At least three times over the next 12 months.

DGII is rated green in five of our six factors:

  • growth – DGII scores an 86 On value, with a growth rate of earnings per share for the year of 9% and a 22.5% increase in sales from its last quarter.
  • amplitude – Since that time a year ago, Digi’s share price has risen more than 18%. DGII scores a 79 In momentum.
  • size With a market capitalization of $ 826.2 million, DGII is right in the middle of the package in terms of size, where it wins the number 68.
  • quality Yields on assets, capital and investments are all flat or negative in the communications equipment industry, but Digi has positive wins in all three indices. DGII scores a 66 On quality.
  • Volatility – Opposite winds in the market pushed the Digi stock down, but it recorded a 38% run from the 52-week low in May 2022 to a high a month later. DGII scores a 63 On volatility.

DGII earns a 39 On value, But the price to value ratio of his book is 1.75, compared to the industry average of 2.24.

The Bottom Line: The Internet of Things market is in its infancy and growing daily.

As the market grows, so does the need for sensors and communication equipment to make these products work properly.

This is why DGII is a must for your portfolio.

Safe Trading,

Matt Clark, CMSA®
Researcher, Money and Markets Analyst

Matt Clark is the research analyst at Money & Markets. He is a certified capital and securities market analyst at a corporate financial institution and contributes to Looking for alpha. Prior to joining Money & Markets, he was a journalist / editor for 25 years, covering sports colleges, business and politics.

Buy Into Internet of Things’ $1 Trillion Future (Top-Rated DGII Stock) Source link Buy Into Internet of Things’ $1 Trillion Future (Top-Rated DGII Stock)

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