There's a special class of companies I like to target called "20/20 small caps." And I can't imagine a more apt year to talk about them than 2020. These are companies that are seeing at least 20% revenue growth and 20% earnings growth. Over the years, I've found that these are some of the most profitable stocks to invest in. Today, I want to highlight a company that's a 20/20 small cap. But it's also involved in an opportunity that often gets overlooked by investors. The Smart RevolutionMost of us likely remember when we first got "the internet" in our homes. It was a magical time chock-full of excruciatingly slow dial-up speeds, constantly interrupted by some inconsiderate person picking up the phone. The glory days of dual-purpose landlines! Now the internet is all around us. I can't wave my hand anywhere in my home without hitting an internet-connected device. This is where the numbers become overwhelming... Because our homes - and our lives - are increasingly melding with the internet. It's not just smartphones, tablets, PCs and consoles. It's digital assistants, refrigerators, security cameras, smart speakers, thermostats, TVs, toothbrushes and a growing laundry list of devices. 125 Billion Eyes and EarsIn 1999, British tech pioneer Kevin Ashton coined the phrase "the Internet of Things," or IoT. At that time, only computers were connected to the web. But even in those dark ages of the late 1900s, the future of a connected world was inevitable. It's been two decades since Ashton conceived the IoT. Slowly but surely, it's become a reality, arriving one device at a time. And over the next decade, the numbers will become truly staggering. Projections show that there will be more than 125 billion devices connected to the internet by 2030... That's a 368% increase from 2019, let alone the astronomical rise from 2018! And by many accounts, that 125 billion projection seems to err on the side of being somewhat conservative. It's estimated that 127 new IoT devices connect to the web every second. And it's forecast that each home will eventually have more than 50 connected devices. So we could easily see more than 125 billion connected IoT devices by the end of the decade. |
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