Press releases and other flack from the high technology crowd report breakthroughs in wearable monitoring and memory devices. A recent Barron's cover story named the top technology, services, and consumer goods players in the game to build devices comprising the Internet of Things [IoT]. The following article was prepared as a scorecard by which to rate the publicly owned companies at the core of such wonders.
Results from Yahoo Finance, tallied as of market closing August 8, compared stock prices for fifteen makers and shapers of the Internet of Things with analyst mean target price results one year hence. QuickLogic Corporation (NASDAQ:QUIK), a Sunnyvale, CA firm, exhibited a 36.5% price upside to lead the field.
The chart above used one-year mean target price set by brokerage analysts matched against August 8 closing price to calculate ten IoT maker and shaper stock upside price potentials into 2015. Others on the list beside Sunnyvale's QuickLogic Corporation were: NXP Semiconductors (NASDAQ:NXPI) which made noise making millions of chips for hearing aids, boasted a 25.6% upside; Amazon.com Inc. (NASDAQ:AMZN), the Seattle, WA based provisioner of everything online, showed a 22.9% upside; STMicroelectronics (NYSE:STM), a major source for microcontrollers, posted a 19.1% upside; InvenSense, Inc. (NYSE:INVN), a sensor maker, showed 16.65% upside; Qualcomm Incorporated (NASDAQ:QCOM), providing brainy chips for wearables, projected 14.5% upside; Atmel Corporation (NASDAQ:ATML) was ready to toss in its chips with a 13.68% upside; Microchip Technology Inc. (NASDAQ:MCHP), another maker of microcontrollers, managed to show a 13.3% upside. Apple, Inc. (NASDAQ:AAPL), with its ways to make accessories user friendly and desirable, showed 12.16% upside; and finally the firm that brought us the original calculators, Texas Instruments Inc. (NYSE:TXN) is still in the game exhibiting a 9.67% upside potential.
The number of analysts providing price estimates was noted after the name of each stock on the source table for the chart. Three to nine analysts were considered optimal for a valid mean target price estimate.
Wall Street Wizards Wrap 10.8% Average Net Gain from 15 IoT Makers and Shapers By 2015
Fifteen Yahoo Finance picks were graphed below to show relative strengths from $1k invested in each as of February 21, 2014, compared to prices projected by Yahoo Finance analyst mean 1-year target estimates to the same date in 2015.
A hypothetical $1000 investment in each stock was divided by the current share price to find the number of shares purchased. Thereafter, the analyst mean target price was used to gauge the stock price upsides and net gains less $20 purchase and sale broker fees as of 2015.
Average single share price of the fifteen stocks made the data point for 2014. Projections based on average one-year analyst target share prices from Yahoo Finance created the 2015 data points. Those two averages defined the green line showing price appreciation.
Yahoo Finance projected an aggregate single share price increase of 10.6% in the coming year. The number of analysts contributing to the mean target price estimate for each stock was noted in the next to the last column on the chart. Again, three to nine analysts was considered optimal for a valid projection estimate.
A beta (risk) ranking for each analyst rated stock was provided in the far right column of the chart above. A beta of 1 meant the stock's price would move with the market. Less than 1 showed lower than market movement. Higher than 1 showed greater than market movement. Negative numbers show movement to the opposite of market direction.
Six IoT Maker & Shaper Stocks Net 14.6% to 34.5% by August 2015
Six possible profit generating stock trades from $1k invested in each revealed by Yahoo Finance for 2015 were:
QuickLogic Corporation netted $344.94, based on a mean target price estimate by 2 analysts less $20 in broker fees. The Beta number showed this estimate subject to volatility 103% greater than the market as a whole.
NXP Semiconductor netted $236.34 based on a mean target price estimate from 20 analysts less $20 in broker fees. The Beta number showed this estimate subject to volatility 44% less than the market as a whole.
STMicroelectronics netted $214.62 based on a mean target price estimate from 7 analysts less $20 in estimated broker fees. The Beta number showed this estimate subject to volatility 38% more than the market as a whole.
Amazon.com Inc. netted $209.23, based on a mean target price estimate by 36 analysts less $20 in broker fees. The Beta number showed this estimate subject to volatility 23% less than the market as a whole.
Qualcomm Incorporated netted $151.22 based on a mean target price estimate from 34 analysts less $20 in broker fees. The Beta number showed this estimate subject to volatility 12% less than the market as a whole.
InvenSense, Inc. netted $146.46 based on a mean target price estimate from 13 analysts less $20 in estimated broker fees. The Beta number showed this estimate subject to volatility 233% more than the market as a whole.
The average net gain in price was 21.7% on $6k invested as $1k each in these six stocks. This gain estimate was subject to average volatility 49% greater than the market as a whole.
The stocks listed above were suggested only as decent starting points for your IoT maker and shaper company stock purchase research process. These were not recommendations.
Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, recommendation or endorsement to buy or sell any security. Prices and returns on equities in this article except as noted are listed without consideration of fees, commissions, taxes, penalties, or interest payable due to purchasing, holding, or selling same.
Disclosure: The author is long INTC. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.