I've been digging into the smart home sector lately, and there's something interesting emerging around work from home stocks that might be flying under the radar for a lot of investors. CE Pro magazine actually tracks 55 smart home stocks, and back in 2023 about 80% of them delivered positive returns. That's a solid track record, but most people don't realize how fragmented this space really is.

Let me break down three names that caught my attention. First up is NRG Energy. Now, it's not a pure play on smart home, but they made a strategic move in 2023 acquiring Vivint Smart Home for around $5.2 billion. What's interesting here is that Vivint brought nearly two million customers to the table with security systems, smart cameras, and thermostats. That's the kind of recurring revenue model that makes sense for work from home stocks where people want integrated security and automation. NRG's been up significantly since then, trading near all-time highs.

Then there's Allegion, which operates under brands like Schlage and acquired Stanley Access Technologies back in 2022. What they're really doing is building out IoT and electronic solutions for both commercial and residential markets. Their CEO mentioned strong demand for electronics solutions with mid-teens organic growth in that segment. For investors looking at work from home stocks, the appeal here is the predictable earnings from their security and access control products. Valuations look reasonable too, trading under 18x earnings.

The third one I'm watching is SmartRent. This is a pure play on the smart home rental space, serving major multifamily property operators. They've been scaling aggressively, with revenue expected to grow nearly 40% in 2023 and now serving over 680,000 rental units. The stock got hammered over the past few years, but here's the thing: they're finally approaching profitability. If they hit free cash flow positive in 2024 like they projected, work from home stocks in this segment could see a real re-rating.

The broader trend here is that smart home technology isn't just about consumer gadgets anymore. It's becoming essential infrastructure for property management, energy efficiency, and security. Whether it's NRG cross-selling to millions of utility customers, Allegion's electronic solutions gaining traction, or SmartRent scaling their platform, there's real momentum building. For anyone tracking work from home stocks and related automation plays, this sector deserves more attention going into 2026.