4 Computer Hardware Stocks To Consider Adding To Your List Now
As investors look for opportunities in the stock market within the tech industry, computer hardware stocks sometimes come to mind. Admittedly, hardware stocks may not grab as many headlines as software stocks. But, this does not mean that computer hardware is any less important. With work-from-home trends gaining ground since the start of the pandemic, consumers and enterprises saw the need to upgrade their tech infrastructure. Therefore, you could say that the role of tech hardware is as crucial as ever.
For example, Dell (NYSE: DELL) recently announced record third-quarter earnings. It generated record revenue of $28.4 billion, up 21% year-over-year. Besides that, its operating income for the quarter was $1.3 billion, up 19% year-over-year. All this shows that the personal computer industry is still going strong. Another example would be Apple (NASDAQ: AAPL) which continues to trade near its all-time high despite the broad market weakness. With all these in mind, would you be interested in a list of the top computer hardware stocks in the stock market today?
Best Computer Hardware Stocks To Buy [Or Sell] This Week
- Pure Storage Inc (NYSE: PSTG)
- HP Inc (NYSE: HPQ)
- Seagate Technology Holdings (NASDAQ: STX)
- IonQ Inc (NYSE: IONQ)
First, let us start with the trending computer hardware company, Pure Storage. Put simply, the company provides technology and data storage solutions. Its portfolio of products and subscription services includes Cloud Data Infrastructure, Cloud Data Services, and Cloud Data Management. It appears that investors are bullish on PSTG stock right now as it is rising by 10.75% as of 10:30 a.m. ET. Now, what could be the catalyst for this movement?
For starters, it reported strong third-quarter results. Its revenue came in at $563 million versus the consensus estimate of $531 million. This also represents a 37% increase year-over-year. Furthermore, it announced EPS of $0.22 compared to analysts’ estimate of $0.12. Safe to say, the company’s strong third quarter was fueled by increasing customer demand and execution across its entire business.
Keen investors should also note that the company is showing great success in transitioning from a pure hardware company to one that also involves in software and storage subscription services. As the economy starts to recover from the pandemic, we can expect its commercial and enterprise businesses to recover over time. Given these positive developments, would you consider PSTG stock a strong buy right now?
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HP is a multinational tech company that develops personal computers (PCs), printers, and related supplies. It serves individual consumers, small- and medium-sized businesses, and large enterprises. While HPQ stock may have been trading sideways for most of this year, it has still risen more than 40% within the period. Now that it has announced its fiscal 2021 full-year and fourth-quarter earnings report, could it continue to build on its upward momentum?
Well, the company reported net revenue of $16.7 billion for the fourth quarter, representing an increase of 9.3% year-over-year. More impressively, its GAAP diluted net EPS was $2.71, soaring from the $0.49 in the prior-year period. During the quarter, the company also returned $2.0 billion to shareholders in the form of share repurchases and dividends. Looking ahead, for fiscal 2022, HP estimates GAAP diluted net EPS to be in the range of $3.86 to $4.06.
According to Enrique Lores, HP’s President and CEO, these results reflect how a growth-oriented company would operate at its very best. HP is now at the heart of hybrid with an innovative portfolio of hardware, software, and subscriptions. This positions the company for well-sustained growth in the fiscal year 2022 and beyond. With that in mind, do you think HPQ stock will have more room to grow?
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Another top computer hardware stock to note now would be Seagate. Essentially, it is a provider of electronic data storage technology and solutions. Its principal products are hard disk drives (HDDs) and a range of electronic data storage products. STX stock has risen more than 60% since the start of the year.
Last month, the company introduced a new family of Star Wars™ Beskar™ Ingot Drives. It is the first release in a collaboration to bring designs inspired by the Star Wars franchise to its line of PC gaming storage devices. The special edition designs will be available in M.2 NVMe, 2.5-inch SATA, and external HDD formats. As the gaming market continues to grow, the company recognizes the need to evolve to stay ahead of the curve.
Seagate has also been firing on all cylinders to start the new fiscal year. The company reported solid revenue growth at $3.12 billion, up 34.4% year-over-year. Meanwhile, its GAAP net income more than doubled during the quarter, coming in at $526 million. Its impressive results are a true testament to the company’s consistent execution throughout the pandemic along with a sustained healthy demand environment. All things considered, would you be buying STX stock?
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To sum up the list, we will be looking at IonQ. This is a quantum computing company that develops general-purpose quantum computing systems. Its primary focuses revolve around the development of quantum computers to solve problems and transform businesses. In fact, users can access its quantum computers via Amazon Braket, Microsoft Azure, and Google Cloud.
Recently, IonQ announced its first-ever financial report since going public last month. Impressively, the company’s year-to-date total contract value bookings were $15.1 million. Moreover, there was a publication by the Quantum Economic Development Consortium (QED-C) that shows IonQ’s latest computers are among the best in business. To put it into context, IonQ’s computers outpaced the entries from International Business Machines (NYSE: IBM), Honeywell (NASDAQ: HON), and Rigetti.
So, it is not surprising that investors showing interest in the industry are paying close attention to the company stock. That said, Goldman Sachs analyst Toshiya Hari gave IonQ a neutral rating that may have caught some investors off guard. He believes that “there is a high level of uncertainty around widespread adoption [and] commercialization of quantum computing”. With all said and done, investors who believe in the growth of the industry may still view IONQ stock as a great prospect. Thus, do you think IONQ stock is a top computer hardware stock to buy now?