Raid automation, surging demand for innovative solutions, and the growing popularity of smart home devices drive significant growth and expansion for the consumer technology market.

Given the industry robust prospects, fundamentally sound consumer technology stocks Apple Inc. (AAPL), Sonos, Inc. (SONO), and GoPro, Inc. (GPRO) could be suitable for the gadget enthusiasts.

Post recent turmoil years due to high inflation levels, slowed economic growth and supply chain effects due to the pandemic, the Consumer Technology Association (CTA) projects overall retail revenues of the U.S. consumer technology industry to grow 1% in 2024 to reach $505 billion, and are anticipated to increase 4.4% in 2025 to $527 billion.

With the notable pace of technology innovation in recent times, the consumer technology is poised for long-term growth trajectory. Trends like Generative AI (gen AI) has stood out since 2022, resulting in increased interest and investment in the technology to explore innovative possibilities across interconnected trends such as robotics and immersive reality.

Further, companies are increasingly focusing and investing on developing high performance and convenient-to-use devices due to the rapidly surging demand. The global consumer electronics market is expected to grow from $815.16 billion in 2024 to $1.47 trillion by 2032, expanding at a CAGR of 7.6%.

In the United States, the revenue in the consumer electronics market is expected to reach $149.60 billion in the current year, propelled by the popularity of smart home devices that are fueling the demand for consumer electronics that cater to seamless integration and automation.

Given the industry’s robust outlook, it could be wise to keep an eye on quality consumer tech stocks such as AAPL, SONO, and GPRO for future gains.

Apple Inc. (AAPL)

AAPL designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. It provides iPhone, Mac, iPad, and wearables, home, and accessories comprising AirPods, Apple TV, Apple Watch, Beats products, and HomePod.

On June 10, AAPL unveiled Apple Intelligence, the personal intelligence system for iPhone, iPad, and Mac that combines the power of generative models with personal context to deliver intelligence which is highly useful and relevant and is deeply integrated into iOS 18, iPadOS 18 and macOS Sequoia.

On the same day, AAPL previewed watchOS® 11, with features for Apple Watch® built on its leading sensor technology, advanced algorithms, and science-based approach to offer revolutionary insights into users’ health and fitness, and more personalization than ever. The new Vitals app offers key health metrics and context to help users make more informed day-to-day decisions.

Also, AAPL launched a suite of innovative new tools and resources designed to allow developers globally to design more powerful and efficient apps across all Apple platforms. With Xcode 16 beta, developers can save time in their development process and access features like Swift Assist and predictive code completion.

AAPL reported total net sales of $90.75 billion during the second quarter that ended March 30, 2024, of which its Services net sales rose 14.2% year-over-year to $23.87 billion. The company’s net income and EPS came in at $23.64 billion and $1.53 for the quarter, respectively.

Furthermore, the company’s cash and cash equivalents stood at $32.69 billion as of March 31, 2024, versus $29.96 billion as of September 30, 2023.

Analysts expect AAPL’s revenue for the third quarter (ended June 2024) to increase 2.9% year-over-year to $84.14 billion and its EPS for the same period is expected to grow 5.9% year-over-year to $1.33. Moreover, the company has topped the consensus EPS estimates in each of the trailing four quarters.

Shares of AAPL have surged 12% over the past six months and 12.3% over the past year to close the last trading session at $217.49.

AAPL’s POWR Ratings reflect its robust outlook. The 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. It is ranked #22 out of 39 stocks within the B-rated Technology – Hardware industry.

In addition to the POWR Ratings we’ve stated above, we also have other ratings of AAPL for Value, Growth, Momentum, and Stability. Get all AAPL ratings here.

Sonos, Inc. (SONO)

SONO designs, develops, manufactures, and sells audio products and services internationally. The company provides wireless, portable, and home theater speakers, components, and accessories. It offers its products through nearly 10,000 third-party retail stores, like custom installers of home audio systems, and e-commerce retailers, and through its website.

On May 21, SONO unveiled its first-ever headphones, Sonos Ace and marked the brand’s long-awaited entry into the personal listening category. Sonos Ace offers stunning sound, sleek design and long-standing comfort to one of the largest and most popular audio categories worldwide.

On April 23, SONO launched its most extensive app redesign, to create an unprecedented streaming experience enabling listeners to organize their favorite playlists, stations, albums and more from over 100 services on one customizable Home screen.

The modernized app and platform puts listeners in the driver’s seat with a personalized experience to make listening easier, faster and better.

During the second quarter that ended March 30, 2024, SONO reported revenue of $252.66 million and its non-GAAP gross profit was $113.70 million. Its total other income increased 157.9% from the year-ago value to $508 thousand. Its cash and cash equivalents stood at $245.96 million as of March 30, 2024, compared to $220.23 million as of September 30, 2023.

As per the fiscal year 2024 outlook, SONO expects revenue between $1.60 billion and $1.70 billion. Also, the company’s adjusted EBITDA is expected to be between $150 million and $180 million.

Street expects SONO’s revenue for the third quarter (ended June 2024) to increase 4.8% year-over-year to $391.24 million, while its EPS for the same quarter is expected to grow 6.2% year-over-year to $0.17. Furthermore, the company surpassed the consensus revenue estimates in each of the trailing four quarters.

SONO’s stock has increased 37.3% over the past nine months to close the last trading session at $13.58.

SONO’s sound fundamentals are reflected in its POWR Ratings. The stock has a B grade for Value and Quality. Within the Technology – Electronics industry, SONO is ranked #26 out of 43 stocks.

Click here to access additional ratings of SONO for Sentiment, Momentum, Growth, and Stability.

GoPro, Inc. (GPRO)

GPRO develops and sells cameras, mountable and wearable accessories, and 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 entered a new distribution partnership with SoftBank Group’s SB C&S Corporation in Japan to sell its products via one of the largest sales networks in the region. The partnership will offer retail customers with the full range of GoPro cameras and accessories expanding company’s operations.

This will lead to customers in Japan having greater access to a wide selection of GoPro products, including the latest products and innovations.

On June 12, GPRO marked a significant milestone of surpassing 50 million cameras sales since the launch of its ground-breaking HD HERO camera back in 2009.

For the first quarter that ended March 31, 2024, GPRO posted revenue of $155.47 million and its gross profit grew 1% from the year-ago value to $53.04 million. Its cost of revenue decreased 16.2% year-over-year to $102.43 million. Its cash and cash equivalents and total current assets came in at $133.66 million and $369.51 million as of March 31, 2024, respectively.

Analysts expect GPRO’s revenue and EPS for the fourth quarter (ending December 2024) to increase 6.9% and 366.6% year-over-year to $315.75 million and $0.09, respectively. Moreover, the company topped the consensus revenue estimates in three of the four trailing quarters.

GPRO’s stock has surged 19.2% over the past month to close the last trading session at $1.58.

GPRO’s POWR Ratings reflect its bright prospects. The stock has a B grade for Value.

The stock is ranked #29 among 39 stocks in the B-rated Technology – Hardware industry.

To access GPRO’s other ratings for Sentiment, Momentum, Stability, Growth and Quality, click here.

What To Do Next?

43 year investment veteran, Steve Reitmeister, has just released his 2024 market outlook along with trading plan and top 11 picks for the year ahead.

2024 Stock Market Outlook >

AAPL shares were trading at $218.24 per share on Friday afternoon, up $0.75 (+0.34%). Year-to-date, AAPL has gained 13.65%, versus a 15.29% rise in the benchmark S&P 500 index during the same period.

About the Author: Rjkumari Saxena

Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions. More...

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