New Trade for November 6th, 2020

Futures are red this morning after this week’s four day rally.  U.S. equities are still up big for the week though.  Votes are still being counted, and the balance of power in the Senate remains close.  Developments throughout the day could steer markets as investors await news. 

In the wake of covid-19, millions of American’s used the extra time at home this summer to make home improvements.  Share prices for companies like Home Depot (HD), Floor & Decor (FND) and Lowe’s (LOW) have all grown YTD in the light of the trend.

With winter setting in and the holidays just around the corner, we are looking at a “home improvement” stock of another sort and it may surprise you.  It’s a tech stock with high potential for future growth.



Home security and home automation is a market that has taken off in recent years.  The market is currently valued at $53.6 billion.  And it’s projected to hit $78.9 billion by 2025.  A considerable part of that growth is attributed to the increasing popularity of wireless video cameras and doorbell cameras.  

Alarm.com (ALRM) operates behind the scenes of connected security solutions.  The company offers interactive security solutions for home and business owners which include image sensor, crash and smash protection, web control, mobile access and video monitoring. It provides a cloud-based platform that integrates all the different devices and systems, plus connects them to the internet for remote access and monitoring.  Alarm.com has also recently expanded into home automation, including remote control of heating and cooling systems. 

ALRM stock has posted growth of 243% over the past five years.  As more home security and home automation solutions become mainstream, demand for Alarm.com’s connectivity solution will likely grow.