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Smart fabric stocks include companies that manufacture and sell textiles that incorporate components such as sensors, actuators, and electronic textiles. These textiles are used in a variety of applications including health monitoring, sports and fitness, fashion, and even the military.
The production of smart textiles for use in the health sector is currently an area of great growth. These fabrics are embedded with sensors that help track an individual's vital signs, which is useful for athletes and patients alike. The convergence of microelectronics and biotechnology is increasing the functionality and lifespan of these textiles, which is why they could be considered for long-term use.
Plus, investing in Smart Fabrics stocks gives you the chance to participate in the development of a promising industry – after all, there's plenty of room for improvement.
I'm bullish on these three smart fabric stocks for investors. What's more, I believe we're just beginning to tap into their long-term growth potential. Strengthen your portfolio by investing in these top textile stocks.
Dupont de Nemours (DD)
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Dupont de Nemours (New York Stock Exchange:DD) is a global leader across multiple industries including smart fabrics.
DD is one of the smart fabric stocks as it provides innovative solutions and materials to industries like textiles and apparel. Some of DuPont's products are very well-known brands such as Tyvek, Kevlar, and Nomex that are involved in manufacturing high-performance technical fabrics with specific properties.
The company is also working on collaborations with other companies such as: STMicroelectronics (New York Stock Exchange:Technology) expands its reach into smart wearable devices.
Following DuPont de Nemours' recent announcement that it will split its businesses into three separate publicly traded companies, I believe this stock is a good buy. The spin-offs will allow each business to focus on its core competencies, increasing the potential for value creation for shareholders.
DD remains attractively priced, trading at 21 times forward earnings, lower than the broader market.
Nano Dimension (NNDM)
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Nano Dimension (Nasdaq:NNDM) is a company that develops additive manufacturing electronics (AME).
As an investor, Nano Dimension seems like a pretty promising, albeit somewhat speculative, stock in the 3D printing space. I say this even though the company is not directly involved in the production of smart textiles. Moreover, I believe we will see changes in the near future. Specifically, the company may use its DragonFly system to develop smart textiles with integrated electronics.
NanoDimension currently has a lot of cash on its balance sheet, reaching approximately $219 million by the end of Q2 2024. Investors haven't forgotten about that, either, as they're looking for the next big acquisition to fuel their growth. Social media speculates that there could be 3-5 deals in the works following the NanoDimension acquisition being finalized. Desktop Metal (New York Stock Exchange:DM).
NNDM has great potential to be one of the smart fabric stocks with great potential, as the company is synergizing its DragonFly system along with the assets and IP of the companies it has acquired.
KOPN
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I believe it Copin (Nasdaq:Kopun) is considered one of the most promising stocks in the AI and smart fabrics market. Kopin has earned the nickname “the new oil” due to the high potential of its products, which combine AI with the best display technology on the market.
The company is developing organic light-emitting diodes (Organic EL) Microdisplays and lensless display architectures for microdisplays. These are particularly popular in the defense sector. These smart fabrics are changing the face of the battlefield by improving vision systems, allowing soldiers to operate more effectively and safely.
Kopin is expected to achieve double-digit revenue growth in 2024 and expand its new customer base.
As one of the smart fabric stocks I recommend, KOPN is a great choice for investors with a specific interest in the defense industry, but also for those looking to diversify into the sector due to its technology applications.
On the date of publication, the editor in charge did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
As of the publication date of this article, Matthew Farley did not hold (either directly or indirectly) any positions in the securities mentioned in this article. Opinions expressed are those of the author and InvestorPlace.com Disclosure Guidelines.
