If you check a bag while flying on Delta Air Lines Inc. (NYSE: DAL), it may be tracked using technology from Impinj Inc. (NASDAQ: PI).

Impinj stock traded lower on February 12, getting support above its 10-day moving average after trading higher in the previous session.

The stock began rallying in mid-January and picked up steam on February 9 after the company beat fourth-quarter views and raised its guidance on the Impinj chart. The stock is still climbing out of a steep consolidation that began in April 2023 after the company issued disappointing revenue guidance.

However, with that situation appearing to turn around, Impinj is one of those lesser-known stocks that could represent an early opportunity for investors looking for stocks with the potential for big growth ahead. 

Tech to track items in wide range of industries

Impinj makes radio-frequency identification (RFID) tags to track and locate items in various industries: retail, supply chain and logistics.

Other industries include aviation, automotive, healthcare, industrial and manufacturing, sports, food, data centers, travel, banking, linen and uniforms. 

In addition to Delta, customers include Cisco Systems Inc. (NASDAQ: CSCO) and Coca-Cola Co. (NYSE: KO).

Earnings came in at 9 cents a share, down 76% from the year-earlier quarter but way ahead of analysts' views of two cents a share. Revenue was $70.7 million, down 8% but exceeding expectations of $68.3 million. 

Apparel industry de-stocking led to revenue declines

In the earnings conference call, chief financial officer Cary Baker noted that the retail industry's apparel de-stocking accounted for a decrease in revenue in the second half of the year. 

Those declines don't sound great, but Wall Street likes revenue and earnings beats, especially like rosy forecasts.

For the current quarter, the company guided toward earnings of 11 cents per share on revenue of $73.5 million at the midpoint. Analysts had expected net income of two cents a share on revenue of $70.8 million.

Impinj appears to be entering a phase of fast growth. 

For the full year, Wall Street is eyeing earnings of 98 cents per share, an increase of 33%. That would be the company's highest per-share income since going public in 2026. 

Next year, analysts expect Impinj earnings to increase by 95% to $1.92 a share. 

Internet of Things specialist

Impinj is part of the burgeoning Internet of Things (IoT) industry. 

The term refers to everyday objects like cars, appliances, or wearable devices connected to the internet and can communicate with each other. In retail and industrial uses, for example, it allows companies to track items through the manufacturing, distribution and sales phases.

The example of Delta Air Lines is easy for consumers to understand: Luggage is tracked as bags are sorted, loaded onto a flight, and delivered to baggage claim. Passengers can track the journey of their bags on an app.

Like many other companies, Impinj is laying off workers as part of a streamlining operation to boost net income. 

Impinj analyst forecasts show a consensus view of "moderate buy," with a price target of $106.43, an upside of 1.57%. 

That doesn't sound like much, and that's partly a reflection of sparse analyst coverage, which is typical of a company whose market capitalization is just $2.836 billion. 

Analysts boosting Impinj price targets

After the fourth-quarter report, Goldman Sachs boosted its price target on Impinj to $115. Needham's James Ricchiuti reiterated his "buy" rating on Impinj stock, boosting his price target to $120. Impinj is part of the semiconductor stocks subindustry but is far too small to be included in the S&P 500. 

It's a component of the SPDR S&P Semiconductor ETF (NYSEARCA: XSD), with an allocation of 3.32%. 

It's a top component along with Nvidia Corp. (NASDAQ: NVDA), Broadcom Inc. (NASDAQ: AVGO), Marvell Technology Inc. (NASDAQ: MRVL) and Advanced Micro Devices Inc. (NASDAQ: AMD). 

Suppose you're wondering how that can be relative to those chip giants, given Impinj's market cap. In that case, the underlying index of semiconductors is equal-weighted, giving it a tilt toward smaller, growth chipmakers like Impinj. 

Including an index like that can help a stock like Impinj, bringing it more analyst attention and investment as the ETF rebalances.