Smart fabric stocks include firms that manufacture and market textiles. These textiles are embedded with such components as sensors, actuators, and electronic textiles. These textiles have many uses which include in health monitoring, sports and fitness, fashion, and even in the military.
The production of smart textiles for use in health is an area that is presently experiencing a lot of growth. These fabrics are embedded with sensors that are useful in tracking the vital signs of an individual. This is useful for sporty individuals and also patients. Because of the convergence of microelectronics and biotechnology, the functionality and the lifespan of these textiles are enhanced. Thus, they may be considered for long-term use.
Furthermore, investing in smart fabric stocks gives a chance to participate in the development of a promising industry. Afterall, there are numerous opportunities for improvements.
I am bullish on these three smart fabrics stocks for investors. Furethermore, I think we’ve only just begun to tap into their long-term growth potential. Dive into these top textile stocks to help boost your portfolio.
DuPont de Nemours (DD)
DuPont de Nemours (NYSE:DD) is a global leader in various industries, including smart fabrics.
DD is one of those smart fabric stocks because it offers innovative solutions and materials to industries such as textile and apparels. Among the products of DuPont, there are also quite famous brands like Tyvek, Kevlar, and Nomex which are engaged in the production of high-performance technical fabrics with specific characteristics.
The company has also branched out into collaborations with other firms such as STMicroelectronics (NYSE:STM) to extend its reach into smart wearable devices.
As of the recent announcement about DuPont de Nemours to split its operations into three separate publicly traded companies, I think this stock is a good buy. The spin-offs will enable each business to concentrate on its primary operations thus increasing the chances of gaining value for its shareholders.
DD remains attractively priced as it trades at 21x forward earnings, below the broader market.
Nano Dimension (NNDM)
Nano Dimension (NASDAQ:NNDM) provides machines for the fabrication of Additively Manufactured Electronics (AME).
As an investor, Nano Dimension appears to be a rather promising, though somewhat speculative stock in the 3D printing sector. I say this despite the fact that this company is not directly connected with the production of smart textiles. Furthermore, I believe that we could see a change on the horizon. Specifically, the company could employ the DragonFly system to develop smart textiles with the integration of electronics.
Nano Dimension at the moment has a lot of cash in its balance sheet which is approximately $219 million at the end of the second quarter of 2024. Investors are not forgetting it either. No, they are out there searching for the next big acquisition that can fuel their growth. It is speculated on social media that there could be between three to five possible transactions in the works, following its confirmed acquisition of Desktop Metal (NYSE:DM).
NNDM then has a lot of potential to become one of those smart fabrics stocks with great potential. This company synergizes its DragonFly system along with the assets and IP of its acquired companies.
Kopin (KOPN)
I believe that Kopin (NASDAQ:KOPN) can be considered one of the most promising stocks in the AI and smart fabrics market. Kopin has earned the nickname of the “new oil” due to the high potential of the company’s products. Their products combine AI with the best display technologies on the market.
The company has developed organic light-emitting diode (OLED) microdisplays and lens-less display architectures for microdisplays. They have particularly found a home in the defense sector. These smart fabrics are changing the face of the battlefield through improving the visual acuity systems. This makes it easier for soldiers to be more effective and safe at the same time.
Kopin is expected to achieve double-digit revenue growth in 2024 and grow its new customer base.
I recommend KOPN as one of those smart fabrics stocks. This is great for investors who have a particular interest in the defense industry. It is also good for those who are seeking to diversify into this sector due to the applications of its technology.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.