Upgrading your home nowadays means a whole lot more than just replacing the carpet or adding a fresh coat of paint. In a time when security is a priority, Vivint Smart Home (NYSE:VVNT) offers timely smart-home solutions. And, investors can make a smart move by accumulating shares of Vivint Smart Home stock.
Not everyone is aware of Vivint and what the company does, or even how a smart home could enhance their lives. It might only be a matter of time, however, before Vivint is a household name. That would push Vivint Smart Home stock much higher.
Vivint has actually been around since 1999, a time when home-security technology was primitive — at least compared to today. Now that homes are much “smarter” and the demand for security is strong, VVNT stock is a right-place, right-time type of investment.
Vivint Smart Home Stock at a Glance
The road to the $28 level and back was swift and undoubtedly startling. Shares powered their way up to that level very quickly in February and early March. Prior to that run-up, VVNT shares were trading at less than $13 apiece.
The spread of the novel coronavirus had a profound impact on the stock price in the middle of March. Before you knew it, Vivint Smart Home stock fell below $10 per share. In hindsight, this selloff was likely overdone. And if anything, it produced a prime buying opportunity.
That moment has passed, as VVNT shareholders have recovered some of their losses. However, the stock still has a ways to go before it retakes its former peak price. This suggests the possibility of more upside as the investing community weighs the potential of this exciting company.
Solutions for an Insecure Time
The concept of smart homes, particularly for Vivint, is directly connected to the idea of home security. This represents a robust market as the demand for enhanced security is ever-present.
Research conducted by Statista suggests that the global market in the smart-home security niche will exceed $35 billion in 2024. And according to Fortune Business Insights, the global smart-home market is expected to reach an astonishing $622.6 billion by the year 2026.
There are a limited number of major competitors in the home-security space. When we narrow it down to smart-home security service providers, the field is even more limited. That works in favor of Vivint — as well as the company’s investors.
Besides, a confluence of recent events has reminded homeowners of the importance of security. The spread of Covid-19 certainly made people feel less safe and secure. But, it’s the incidents of civil unrest that have made home security top-of-mind for so many Americans lately.
Where Does Vivint Excel?
The call for smarter homes and upgraded security is now being answered by Vivint Smart Home. Sure, Vivint provides home-security systems and 24/7 alarm monitoring, but it also offers smart locks and garage-door openers, automated lighting control and smart thermostats, and even complete home-automation systems.
Vivint’s shareholders will be glad to know that the company maintains a sizable market footprint. The company boasts more than 10,000 employees as well as over 1.5 million customers throughout the United States and Canada.
Moreover, judging by Vivint’s first-quarter fiscal data, this company is firmly in growth mode. During that quarter, Vivint’s total revenues came in at $303.2 million, signifying a year-over-year increase of 9.8%. Plus, the company’s adjusted EBITDA for the quarter came to $134.9 million, a marked improvement over the $107.3 million reported during the same quarter of the previous year.
My Final Word on VVNT Stock
The VVNT stock price has shown improvement in recent weeks, but it still has plenty of room to run. In worrisome times where smarter homes could potentially save lives, Vivint’s value will soon be better known and appreciated.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.