Wrapping up Q3 earnings, we look at the numbers and key takeaways for the internet of things stocks, including Trimble (NASDAQ: TRMB) and its peers.

Industrial Internet of Things (IoT) companies are buoyed by the secular trend of a more connected world. They often specialize in nascent areas such as hardware and services for factory automation, fleet tracking, or smart home technologies. Those who play their cards right can generate recurring subscription revenues by providing cloud-based software services, boosting their margins. On the other hand, if the technologies these companies have invested in don’t pan out, they may have to make costly pivots.

The 6 internet of things stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.4% while next quarter’s revenue guidance was in line.

Luckily, internet of things stocks have performed well with share prices up 10.4% on average since the latest earnings results.

Trimble (NASDAQ: TRMB)

Playing a role in the construction of the Paris Grand, Trimble (NASDAQ: TRMB) offers geospatial devices and technology to the agriculture, construction, transportation, and logistics industries.

Trimble reported revenues of $901.2 million, up 2.9% year on year. This print exceeded analysts’ expectations by 3.5%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.

Trimble delivered the weakest full-year guidance update of the whole group. Interestingly, the stock is up 3.1% since reporting and currently trades at $81.01.

Is now the time to buy Trimble? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: AMETEK (NYSE: AME)

Started from its humble beginnings in motor repair, AMETEK (NYSE: AME) manufactures electronic devices used in industries like aerospace, power, and healthcare.

AMETEK reported revenues of $1.89 billion, up 10.8% year on year, outperforming analysts’ expectations by 4.3%. The business had an exceptional quarter with an impressive beat of analysts’ revenue estimates and a solid beat of analysts’ organic revenue estimates.

The market seems happy with the results as the stock is up 13.3% since reporting. It currently trades at $208.61.

Is now the time to buy AMETEK? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Emerson Electric (NYSE: EMR)

Founded in 1890, Emerson Electric (NYSE: EMR) is a multinational technology and engineering company providing solutions in the industrial, commercial, and residential markets.

Emerson Electric reported revenues of $4.86 billion, up 5.1% year on year, falling short of analysts’ expectations by 0.9%. It was a softer quarter as it posted a significant miss of analysts’ EBITDA estimates and EPS guidance for next quarter missing analysts’ expectations significantly.

Emerson Electric delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 1.2% since the results and currently trades at $136.15.

Read our full analysis of Emerson Electric’s results here.

Rockwell Automation (NYSE: ROK)

One of the first companies to address industrial automation, Rockwell Automation (NYSE: ROK) sells products that help customers extract more efficiency from their machinery.

Rockwell Automation reported revenues of $2.32 billion, up 13.8% year on year. This result beat analysts’ expectations by 4.9%. It was an exceptional quarter as it also produced an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ adjusted operating income estimates.

Rockwell Automation delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 10% since reporting and currently trades at $398.84.

Read our full, actionable report on Rockwell Automation here, it’s free for active Edge members.

SmartRent (NYSE: SMRT)

Founded by an employee at a real estate rental company, SmartRent (NYSE: SMRT) provides smart home devices and software for multifamily residential properties, single-family rental homes, and student housing communities.

SmartRent reported revenues of $36.2 million, down 10.6% year on year. This print topped analysts’ expectations by 1.8%. Overall, it was a strong quarter as it also logged a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.

SmartRent had the slowest revenue growth among its peers. The stock is up 48.7% since reporting and currently trades at $2.03.

Read our full, actionable report on SmartRent here, it’s free for active Edge members.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.