Driven by RAID automation, growing demand for innovative solutions, and the growing popularity of smart home devices, the consumer technology market is experiencing significant growth and expansion.
Given the industry’s robust outlook, fundamentally sound consumer technology stocks Apple Inc. (AAPL), Sonos, Inc. (SONO), and GoPro, Inc. (GPRO) could be good choices for gadget enthusiasts.
After recent disruptions from rising inflation, slowing economic growth, and the pandemic’s impacts on supply chains, the Consumer Technology Association (CTA) predicts that total retail revenue for the U.S. consumer technology industry will grow 1% in 2024 to $505 billion and 4.4% in 2025 to $527 billion.
The pace of technological innovation in recent years has been impressive, and consumer technology is poised for a long-term growth trajectory. Trends such as generative AI (gen AI) are set to gain prominence in 2022 and beyond, with increased interest and investment in the technology exploring transformative possibilities across interconnected trends such as robotics and immersive reality.
Moreover, surging demand is driving companies to increasingly focus and invest in developing high-performance, easy-to-use devices.The global consumer electronics market is expected to grow from $815.16 billion in 2024 to $1.47 trillion in 2032, expanding at a CAGR of 7.6%.
In the United States, home appliances market revenue is expected to reach $149.6 billion this fiscal year, driven by the popularity of smart home devices that are stimulating demand for appliances that support seamless integration and automation.
Given the industry’s robust outlook, it may be wise to keep an eye on quality consumer tech stocks like AAPL, SONO, and GPRO for future gains.
Apple Inc. (AAPL)
AAPL designs, manufactures and sells smartphones, computers, tablets, wearables and accessories worldwide, including iPhone, Mac, iPad, wearables, Home, AirPods, Apple TV, Apple Watch, Beats products and HomePod accessories.
On June 10, AAPL announced Apple Intelligence, a personal intelligence system for iPhone, iPad and Mac that combines the power of generative models with personal context to deliver highly useful and relevant intelligence, deeply integrated into iOS 18, iPadOS 18 and macOS Sequoia.
On the same day, AAPL previewed watchOS® 11, which delivers capabilities for Apple Watch® built on cutting-edge sensor technology, advanced algorithms and a science-based approach to give users transformative health and fitness insights and more personalized features than ever before. The new Vitals app provides users with key health metrics and context to help them make more informed everyday decisions.
AAPL also announced a suite of innovative new tools and resources designed to help developers around the world design more powerful, efficient apps across all Apple platforms. With Xcode 16 beta, developers can save time in the development process and access features such as Swift Assist and predictive code completion.
AAPL reported total sales of $90.75 billion for the second quarter ended March 30, 2024, of which services segment net sales increased 14.2% year over year to $23.87 billion. The company’s quarterly net income and EPS were $23.64 billion and $1.53, respectively.
Additionally, the company’s cash and cash equivalents will be $32.69 billion as of March 31, 2024, compared to $29.96 billion as of September 30, 2023.
Analysts expect AAPL’s third-quarter (ending June 2024) revenue to grow 2.9% year over year to $84.14 billion, and EPS to increase 5.9% year over year to $1.33 for the same period. Additionally, the company has beaten consensus EPS estimates for each of the past four quarters.
AAPL shares have risen 12% over the past six months and 12.3% over the past year, closing the last trading session at $217.49.
AAPL’s POWR Ratings reflect the company’s robust outlook. POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
AAPL has an A grade for Quality and a B grade for Sentiment, which ranks it 22nd out of 39 stocks in the B-Grade Technology – Hardware industry.
In addition to the POWR Ratings above, we also have other ratings for AAPL on Value, Growth, Momentum, and Stability. You can find all AAPL ratings here.
Sonos Inc. (SONO)
SONO designs, develops, manufactures and distributes audio products and services internationally. The company offers wireless, portable and home theater speakers, components and accessories. The company offers its products through approximately 10,000 third-party retailers, including custom installers of home audio systems and e-commerce retailers, as well as through its own website.
On May 21, SONO unveiled its first headphones, Sonos Ace, marking the brand’s long-awaited entry into the personal listening category. Sonos Ace brings great sound, sleek design and years of comfort to one of the world’s largest and most popular audio categories.
On April 23, SONO launched its most significant app redesign to date, delivering an unprecedented streaming experience that allows listeners to organize their favorite playlists, stations, albums and more from over 100 services on one customizable home screen.
Our modernized app and platform puts listeners in the driver’s seat with a personalized experience, making listening easier, faster and better.
For the second quarter ended March 30, 2024, SONO reported revenue of $252.66 million and non-GAAP gross profit of $113.7 million. Total other income was $508,000, up 157.9% year over year. Cash and cash equivalents were $245.96 million as of March 30, 2024, an increase from $220.23 million as of September 30, 2023.
For fiscal 2024, SONO expects revenues of $1.6 billion to $1.7 billion. The company also expects adjusted EBITDA to be between $150 million and $180 million.
The Street expects SONO’s third-quarter (ending June 2024) revenue to increase 4.8% year over year to $391.24 million and EPS for the quarter to increase 6.2% year over year to $0.17. Additionally, the company has beat consensus estimates for its revenue for each of the past four quarters.
SONO shares have risen 37.3% over the past nine months, closing the last trading session at $13.58.
SONO’s sound fundamentals are reflected in its POWR Ratings: the stock has grades of B for Value and Quality. In the Technology – Electronics industry, SONO is ranked 26th out of 43 stocks.
Click here to access additional ratings for SONO’s sentiment, momentum, growth and stability.
GoPro Inc. (GPRO)
GPRO develops and sells cameras, mountable and wearable accessories, subscription services and software internationally. The company offers cloud-connected HERO12 Black, HERO11 Black, HERO11 Black Mini, HERO10 Black, HERO10 Black Bones and HERO9 Black waterproof cameras.
On July 9, GPRO signed a new distribution partnership with SoftBank Group’s SB C&S Corporation in Japan, distributing its products through one of the largest distribution networks in the region. The partnership will expand the company’s business by offering retail customers a full range of GoPro cameras and accessories.
This will give customers in Japan greater access to a wider range of GoPro products, including the latest products and innovations.
On June 12, GPRO reached a significant milestone by surpassing 50 million cameras sold since the launch of its groundbreaking HD HERO camera in 2009.
For the first quarter ended March 31, 2024, GPRO posted revenue of $155.47 million and gross profit increased 1% year over year to $53.04 million. Cost of sales decreased 16.2% year over year to $102.43 million. Cash and cash equivalents and total current assets were $133.66 million and $369.51 million, respectively, as of March 31, 2024.
Analysts expect GPRO’s fourth-quarter (fiscal year ending December 2024) revenue and EPS to increase 6.9% year-over-year to $315.75 million and 366.6% to $0.09, respectively. Additionally, the company has surpassed consensus revenue estimates in three of the past four quarters.
GPRO shares have risen 19.2% over the past month, closing the last trading session at $1.58.
GPRO’s POWR Ratings reflect the company’s positive outlook, with the stock receiving a B grade.
The stock is ranked #29 out of 39 stocks in the B-rated Technology – Hardware industry.
To access additional Sentiment, Momentum, Stability, Growth and Quality ratings for GPRO, click here.
What next?
Steve Reitmeister, a 43-year investing veteran, shares his 2024 market outlook, trading plan and top 11 stocks for the coming year.
Stock market outlook for 2024 >
AAPL shares were trading at $218.24 per share on Friday afternoon, up $0.75 (+0.34%). Year-to-date, AAPL is up 13.65%, while the benchmark S&P 500 index is up 15.29% over the same period.
About the author: Rjkumari Saxena
Rajkumari started her career as a writer but slowly shifted her focus to financial journalism, leveraging her educational background in commerce. Fascinated by the interplay of business and economic changes in stocks, she aims to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to provide investors with insights that lead to profitable decisions. Read more…
