Wall Street investors are looking for potential gains in niche segments, such as consumer tech stocks, especially this earnings season. Consumer technology, encompassing devices and software for the general public, has a profound history of transforming our lives. From earlier innovations like the microwave and transistor radios to today’s smartphones and Internet of Things (IoT) devices, consumer tech has driven a technological revolution.
The global consumer tech market is on an upward trajectory, with spending forecast to reach $512 billion, growing 2.8% year-over-year (YOY). Emerging technologies such as augmented reality (AR), drones and robotic systems play pivotal roles in this expansion. This growth underscores continuous innovation and the integration of technology into daily life, offering substantial potential for consumer tech stocks.
With this promising outlook, let’s delve into three top consumer tech stocks to buy in July.
Dell Technologies (DELL)
We begin exploring consumer tech stocks to buy with Dell Technologies (NYSE:DELL). Known for its diverse range of hardware and software solutions, the multinational tech giant caters to both consumers and businesses. Despite its broad portfolio, DELL’s consumer-focused Inspiron and XPS lines stand out in the consumer tech sector.
In the first quarter of fiscal year 2025, Dell Technologies reported $22.2 billion in revenue, up 6% YOY, driven by strong server and commercial PC sales. However, a 3% drop in adjusted EPS of $1.27 and expectations of gross margin rate to decline due to inflationary pressures and competitive dynamics, dampened investor sentiment.
Amid economic uncertainties and regulatory challenges in the tech sector, DELL has strategically partnered with Ericsson (NASDAQ:ERIC) and Broadcom (NASDAQ:AVGO) to bolster its position in telecom infrastructure and hyperconverged solutions. These initiatives aim to enhance profitability and market presence despite industry headwinds.
Looking forward, Dell Technologies anticipates improved growth through AI initiatives and strategic collaborations. These include involvement in Nvidia‘s (NASDAQ:NVDA) upcoming Blackwell chip and Elon Musk’s new xAI data center in Austin.
DELL stock has gained over 63% year-to-date (YTD), backed by a 1.4% dividend yield. The shares are trading at reasonable valuations of 16.2 times forward earnings and 1 times sales. Analysts foresee potential upside, with a 12-month median price forecast of $162.00 for DELL stock, suggesting a nearly 30% increase.
GoPro (GPRO)
GoPro (NASDAQ:GPRO) is renowned for capturing high-quality, immersive footage in extreme environments. Amid competitive pressures and advancements in smartphone camera technology, GPRO has also diversified into software. It offers image stabilization tools, mobile and desktop app editing and sharing solutions as well as auto-upload capabilities.
In early May, GoPro reported its first quarter of fiscal year 2024 results, with revenues of $155 million, surpassing guidance but down 11% YOY. The adjusted loss per share widened to 21 cents from 16 cents a year earlier. However, subscription and service revenue grew, with a first-quarter aggregate annual subscriber retention rate reaching an all-time high of 69%.
To expand beyond its core HERO camera line, GoPro acquired Forcite Helmet Systems. This strategic move aims to enhance the company’s product offerings in tech-enabled motorcycle helmets. Moreover, GoPro launched a major merchandising program at Best Buy (NYSE:BBY). As a result, it can showcase its products in nearly 900 stores across North America, including specialized Camera Experience Shops. Looking forward, management anticipates a return to growth and profitability in 2025, supported by these strategic expansions and product innovations.
So far in 2024, GPRO stock has declined nearly 52%, currently trading favorably at 0.3 times sales. Meanwhile, analysts’ 12-month median price target stands at $1.85, presenting an upside potential of 12% from the current levels.
Vuzix (VUZI)
We conclude today’s discussion with Vuzix (NASDAQ:VUZI), a notable player among consumer tech stocks, specializing in wearable display technology, including AR glasses. Vuzix aims to transform digital interactions, making VUZI stock appealing for growth-focused investors.
For the first quarter of 2024, Vuzix reported $2 million in revenue, down 52% from the previous year. Loss per share stood flat at 16 cents. Ongoing net losses and cost-cutting measures have led to question marks among investors.
Despite setbacks, Vuzix is actively forming strategic partnerships to bolster its market position. Recently, it partnered with Avegant to develop a new smart glasses, featuring full-color, lightweight designs with customizable features. Prototypes were showcased at AWE USA 2024, with a fully optimized version expected at CES 2025.
The AR market is projected to grow from $42 billion in 2024 to over $248 billion by 2029, with a CAGR of 42.4%. Holding a strong intellectual property portfolio of approximately 375 patents and various licenses in optics, head-mounted displays and AR eyewear, Vuzix is well-positioned to benefit from this trend.
VUZI stock has dropped 31% YTD, currently changing hands at 9.1 times sales. Wall Street analysts have set a 12-month median price target of $3.00 for VUZI stock, signaling a potential upside of over 107% from current levels.
On the date of publication, Tezcan Gecgil did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
