From iMac To IoT: Connecting A Smart New World — And Buy Point

When people hear the word iMac, they immediately think of Steve Jobs (AAPL) and Apple. Apple actually acquired the iconic trademark in 1998 from IoT leader Digi International. Digi's website wryly states, "We presume they did something special."

Digi is a leading innovator in the Internet of Things space.

Digi is accelerating the growth of the network of smart, always connected devices. The Minnesota-based firm's technology powers cloud-connected smart city, transportation systems and medical operations. It also supports precision agriculture, industrial environments, precision farming, and precision agriculture.

Digi has been creating machine-to-machine devices (M2M) since even before IoT became a thing. Digi is at the forefront of smart technology by adapting to changing network standards, data communication protocols and environmental monitoring.

DGII has now been added to the IBD Breakout Stocks Index Buy Point.

Digi Expands SkyCloud to Keep IoT Flying

Digi released the latest version SkyCloud earlier this month. This allows seamless integration of systems with remote monitoring and controlling solutions. Digi's latest release includes REST APIs, and the capability to deploy device configurations for groups of devices. Digi's latest cloud update highlights its commitment to providing comprehensive solutions across various industries, including precision agriculture, water management and environmental compliance.

Digi has an A SMR rating, which measures sales growth, margins, and return on equity. The company reported a little over $111 million for its first quarter on May 4. This represents a 17% increase over the previous quarter. Digi's revenue has grown by 18% annually on average over the past three years.

Earnings per Share for Q1 increased by 22%, to 50 cents. Analysts expect Q2 EPS to grow by 5%, which will lead to an increase of 17% for the entire year.

Connecting the dots to an IoT breakout

Today is Day 5 for DGII Stock. Handles form in a minimum of 5 days. Digi would then offer a 39.10 entry for a cup that has a handle if it completes the chart. The conventional buy point without a handle would be 43.68.

Stocks are showing resilience on Wednesday. They have reversed higher from their lows and now slightly up for the day with volume that is trending above normal.

The stock's right-side base has shown multiple weeks of high weekly volume. This is a sign that the demand for the product is strong. Digi's moving-averages trends also indicate a resurgence in technical strength. The 21-day exponential average has soared above the 50 and 200 day moving averages. The 50-day line appears to be poised for a retake of the 200-day benchmark.

The "new" owner continues to grow. The list of top mutual funds' new purchases for this month showed that top money mangers poured money into AAPL. On Sept. 7, the tech giant introduced its third generation 5G smartphones - the iPhone 14 series. The iPhone 15 and Apple Vision Pro computer glasses are now the focus. Apple's stock has seen both its 21-day and fifty-day moving averages rise as the stock continues to build on a new rally. Now, it's hitting a new record high.

See if Digi International and Apple can continue to climb as they tap into IoT, 5G, smart devices and cloud computing.

This fund from Innovator Capital Management tracks IBD Breakout Stocks Index. This fund (BOUT), like other index ETFs allows you to buy the entire index instead of buying individual stocks. Find out more about ETFs and Innovative funds.