Smart home stocks are companies worth considering. You invest in these companies because they are brands that are rarely covered in the financial media. While investors are pumping up the valuations of big-name brands, these smart home stocks are quietly improving their fundamentals and future business prospects, and many of them can be purchased at deep discounts.
Smart home stocks are also capitalizing on several catalysts that could propel their shares to new heights: Trends in AI, robotics and networking could help boost their valuations and competitive advantage.
So here are the best smart home stocks to buy in November.
Honeywell International (HON)
Honeywell International (NASDAQ:HON) has a broad portfolio that includes home automation products and has been active in integrating its technology into the smart home ecosystem.
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HON stock has recently pivoted to the automation industry, including residential and commercial buildings, and this pivot is expected to boost the company's EPS to $2.15-$2.25 per share.
Despite the short-term weakness, some market commentators have a positive outlook for HON shares, highlighting that the company is expected to meet or beat future earnings expectations, contrary to some investor concerns.
Additionally, Honeywell has reaffirmed its positive outlook and taken good steps forward despite the stock's decline since the start of the year, making HON one of the best smart home stocks to buy.
Nvidia (NVDA)
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Known primarily for its graphics processing units (GPUs), Nvidia's (NASDAQ:NVDA) NVDA stock has made big inroads into the home automation and AI space, making it a significant player in its own right.
NVIDIA is expanding its role in home automation and the Internet of Things (IoT) through AI technologies such as the NVIDIA Metropolis vision AI platform used by Industry.AI at Bengaluru Airport, with similar implementations to be released for smart home environments, further strengthening its position as an IoT leader.
NVDA shares have soared recently, rising 20% in the past four weeks to a new all-time high of about $504.09. The rally comes as investors are excited about NVIDIA's key role in the AI space, giving the company a market capitalization of $1.22 trillion and sending its shares up about 245% since January.
These positive developments could drive momentum and long-term expectations, making this one of the smart housing stocks to buy.
Rockwell Automation (Korea)
Rockwell Automation (NYSE:ROK) is also making great strides in the home automation space. The company is known for its strong stock price growth so far in 2023 and has reported impressive earnings.
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ROK operates primarily in the industrial sector, but has recently expanded into the residential smart home market. The company reported strong fourth quarter results, with net income of $302.9 million and earnings per share of $3.64, beating Wall Street's expectations of $3.49 per share. ROK's sales also beat expectations, coming in at $2.56 billion compared to the $2.44 billion forecast.
Add in optimistic earnings guidance of $12.00 to $13.50 per share, and you have one smart home stock to consider.
As of the publication date of this article, Matthew Farley did not hold (either directly or indirectly) any positions in the securities mentioned in this article. Opinions expressed are those of the author and follow InvestorPlace.com's publication guidelines.
Matthew began covering financial markets during the cryptocurrency boom in 2017 and was a team member of several fintech startups. He then began writing about Australian and US equities for various publications. His articles have appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, New Scientist magazine, and more.