It probably shouldn't be an outsized part of your portfolio at this point in time. It's no secret that much of the technology hardware industry is in a downturn -- it's coming off a large investment cycle over the prior two years, and also suffering under the cloud of th… It probably shouldn't be an outsized part of your portfolio at this point in time. A turnaround doesn't appear imminent, and today's investments could take a while to pay off. Market data powered by FactSet and Web Financial Group. Not only that, but the implementation of sensors with the company's software solutions will lead to recurring revenue for Sierra, which investors love. The Motley Fool owns shares of and recommends Sierra Wireless. Internet of Things and 5G Stock Sierra Wireless Is Still in a Slump -- For Now Sierra Wireless Inc (SWIR) Q3 2020 Earnings Call Transcript Buy These Growth Stocks … Stock Advisor launched in February of 2002. All told, it equated to overall sales falling 10% in 2019, and Sierra swinging to an adjusted loss of $0.3 million compared with adjusted earnings of $32.4 million in 2018. The company has been caught up in the economic slowdown brought on by the U.S.-China trade war, compounded by some managerial missteps. SWIR Year to Date Total Returns (Daily) data by YCharts. Is this a good time to buy the stock? SWIR is up $0.69 from the previous closing price of $11.24 on volume of 330,653 shares. Sierra has also missed the mark in its PC and networking business, where it has lost market share to competitors. When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. Adding fuel to the fire, tariffs on Chinese-made goods also caused Sierra to move some production from China to Vietnam. Given the situation, it's no wonder Sierra Wireless' stock has been cut in half during the market rout. Cumulative Growth of a $10,000 Investment in Stock Advisor, Is Sierra Wireless Stock a Buy? Within IoT, hardware was again a drag, with the segment notching an overall meager gain thanks to recurring service and software revenue from managed IoT solutions. Published on December 14, 2016 at 11:18 pm by Ghia Malicay in Hedge Funds , News Share Tweet Email While the S&P index is up about 9.8% for the year, Sierra Wireless is down 6.1% for 2019 and 24% over the past one-year period. Editor’s Note: “The 5 Best 5G Stocks to Buy Right Now” originally published on May 8, 2020. - Try Now Risk-Free - Money-back guarantee! The company’s stock price has collected 9.00% of gains in the last five trading sessions. Cumulative Growth of a $10,000 Investment in Stock Advisor, Is Sierra Wireless a Buy? But Sierra's longer-term forecast for services revenue to double to $200 million by mid-2022 and double again to $400 million by 2024 is looking over-ambitious at this point. Thus Sierra Wireless could make for a good pick as a high-upside, higher risk proposition. That is on top of a 2018 that was already less profitable than the $1.05 per share in earnings that the company put up in 2017. SWIR lost -$2.26 per share the over the last 12 months. If Sierra can get its integrated end-to-end solution right and solve these problems, it could be a big, value-enhancing opportunity. I love looking at the "story" behind investments from an interdisciplinary point of view, with an equal appetite for high-growth disruptors and beaten-down value names. Should I buy Corteva, Inc. (CTVA)? The Internet of Things hasn't been the boon to connectivity chipmaker Sierra Wireless (NASDAQ:SWIR) that many investors thought it would be. @themotleyfool #stocks $SWIR, Wait Before You Buy This Hot Internet of Things Stock, Internet of Things and 5G Stock Sierra Wireless Is Still in a Slump -- For Now, Sierra Wireless Inc (SWIR) Q3 2020 Earnings Call Transcript, Buy These Growth Stocks Trading Around $10 Before They Soar Higher, Copyright, Trademark and Patent Information. Buy Rating for Sierra Wireless by Riley Capital Research from 01/14/21. That was only partially mitigated by a 1% rise in IoT solutions to $378 million. Given the situation, it's no wonder Sierra Wireless' stock has been cut in half during the market rout. Business Insider . In short, investing in Sierra Wireless is a bet on a turnaround under a new CEO, which could lead to significant upside if it occurs; however, investors will need to be patient. The proper installation of these sensors can save customers big time on maintenance costs, and these modules are just beginning to be widely deployed. For those wanting to bet early, there could be value to be had in this operation, but I think there are better places to invest in the semiconductor space at the moment. In 2019, Sierra's embedded broadband segment (WiFi and cellular chips and routers) sales fell 20% to $336 million. Nicholas has been a writer for the Motley Fool since 2015, covering companies primarily in the consumer goods and technology sectors. Returns as of 01/14/2021. On its recent Q4 earnings report, Sierra disappointed investors by forecasting flat revenue for 2019 and a big adjusted earnings decline, going from about $0.90 in non-GAAP EPS in 2018 to just $0.30 in 2019. Consequently, while we are enjoying success in the automotive segment, we expect our market share to decline in mobile computing until the next cycle of 5G design wins. Market data powered by FactSet and Web Financial Group. That cost the company $1.1 million in Q4, and will $300,000 or so in the current quarter. Sierra Wireless (NASDAQ: SWIR) was once one of the hotter names in the Internet of Things space, but the stock has fallen on hard times recently. If you are looking for stocks with good return, Sierra Wireless Inc stock can be a bad, high-risk 1-year investment option. Wait to see evidence its new end-to-end platforms are catching on -- though that potential development is certainly worth monitoring. CEO Kent Thexton explained on the recent call with analysts: Before taking over as CEO, certain product investment decisions were made that favored investing in automotive to the detriment of some requirements of our mobile computing and networking customers. As earnings estimates have been taken down to just $0.30 this year and $0.77 next year, Sierra trades at roughly 41 times this year's EPS estimates and around 16 times 2020 earnings estimates. Sierra Wireless, Inc. (SWIR) stock is higher by 6.14% while the S&P 500 is unmoved 0% as of 11:30 AM on Monday, Jul 27. Thexton said, "when we sell our full solution versus just our hardware, we increase customer lifetime value by three to five times.". Things are thus likely to get a lot worse before they get better. Press Release reported on 01/13/21 that LUCI Smart Wheelchair Connected with Sierra Wireless LPWA Solution Recognized by Time Magazine and Popular Science Remember, there are thousands of stocks trading on the NYSE and Nasdaq. Sierra Wireless (TSX:SW)(NASDAQ:SWIR) posted Q4 results recently that left investors questioning their long-term investment. He is also the founder and president of Concinnus Financial, a Registered Investment Advisor based in Spokane, WA. 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