Sierra Wireless (NASDAQ:SWIR) Not the Fastest Growing Stock among the Internet of Things

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By Chris Hillman on January 16, 2015 Technology & Software

Even though Sierra Wireless Inc. (NASDAQ:SWIR) has been a favorite of investors for quite some time now, the company might not be the fastest growing stock available for trading at the stock markets, as there are four specific stocks of companies belonging to the Internet of Things (IoC) category that seem to be outperforming it on the NASDAQ stock exchange. Till the beginning of 2015, Sierra Wireless Inc. (NASDAQ:SWIR) has posted increases in quarterly revenue of over 28% year after year.

Earnings per share have also increased dramatically by almost $0.24 per share on average, a figure much better than the one being targeted by industry analysts, who had the EPS pegged at $0.13. The stock is indisputably one of the best performing stocks in the IoC category, growing by more than 80% in the last fiscal year on the NASDAQ stock exchange. Analysts estimate that for the upcoming year, sales for Sierra Wireless Inc. (NASDAQ:SWIR) will grow by a further 13%, which showcases excellent performance by the company in the industry.

However, analysts predict that certain companies within the IoC industry may outperform Sierra Wireless Inc. (NASDAQ:SWIR) in the coming year, at least in their stock performance. After all, by the end of the day, investors worry about the growth of the stock, and, analysts argue, some IoC companies show much more promise than Sierra Wireless Inc. (NASDAQ:SWIR) as far as their stock’s growth is concerned. One such company which analysts have pegged is Ambarella (NASDAQ:AMBA).

According to analysts and industry experts, revenues for the company are expected to increase by an estimated figure percentage of almost 24% in the current fiscal year. The company makes SoCs for GoPro Inc., the world famous camera-making company. Currently, reported gross margins of Ambarella stand at over 63%, which are only expected to increase this year due to continuous innovation by the company in the sector.

Another company which has been pegged by analysts as having greater growth than Sierra Wireless Inc. (NASDAQ:SWIR) is CalAmp (NASDAQ:CAMP), the growth of which has been estimated by industry experts to stand around 15% in revenue in the current fiscal year. Although stocks of the company have had a very volatile history (they rose by more than 300% from January of 2013 to March of 2014, and then fell by over 30% in later months), lucrative contracts with the company Caterpillar seem to reflect positively on the business of the company and ensure a steady growth in stock in the upcoming year.

But perhaps the leader in growth would be Skyworks Solutions (NASDAQ:SWKS), which, according to industry analysts, may grow in revenue by over 31% in the upcoming year. Having big industry giants such as Apple and Samsung as its clients, Skyworks Solutions grew its revenue by over 50% in the previous quarter alone, with a cumulative growth in revenue for the past one year at around over 161%.