Remote Working Drives PC Peripheral Demand: 5 Stocks to Watch
The coronavirus pandemic has radically changed the work environment. With more employees forced to work remotely to maintain social distancing, there has been a surge in demand for computer and computer peripherals. People are equipping their home offices as the work-from-home trend is here to continue for an uncertain period of time.
Home to Office Transformation Boosts PC Peripheral Sales
In March, Shopify provided a $1,000 stipend to its employees for buying office supplies. While several companies have allowed employees to take their computers and laptops home, there was a spike in demand for peripherals like pointing devices, webcams, speakers, microphones and storage devices.
In fact, per NPD data, mice and keyboard sales grew 10% in the first two weeks of March. The report also said that shift to working from home has also boosted sales of webcams. Additional sales of big screens and dual monitor setups surged with 80,000 units sold at retail during the same period.
Logitech International S.A. LOGI reported a 13.6% increase in sales in the first quarter of 2020 as most people are working remotely amid the pandemic. In fact, the company's camera, microphone and online meeting software sales increased 60%. While sales of keyboard, computer mouse and gaming headset increased 8%.
For many employees working on laptops for hours on the couch was fun for a week or so, but gradually a work-like set-up at home was preferred. In fact, even as lockdowns are being eased and the economy is reopening, several companies have requested employees to continue working remotely as fears of a second wave of infection loom large.
Major tech firms like Facebook and Google have extended their work-from-home policies through the end of the year.
5 Stocks to Watch Out For
The work-from-home trend has bumped up sales of computer peripherals and with virus-led uncertainties looming large, more number of employees will be looking to transform their homes into new workspaces. Per a ResearchandMarkets.com report, the computer accessories market is poised to rise by $2.86 billion during 2020-2024, at a CAGR of 6%.
We have shortlisted five stocks that can enjoy the boom in demand for computer peripherals.
Turtle Beach Corporation HEAR offers a range of gaming headsets, keyboards, mice and other computer peripherals. The company’s expected earnings growth rate for the current quarter is more than 100% against the Zacks Communication - Components industry’s estimated earnings decline of 13.3%.
The Zacks Consensus Estimate for its current-year earnings has climbed more than 100% over the past 60 days. Turtle Beach sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Fortinet, Inc. FTNT offers add-on computer peripherals that provide secure switching solutions for connecting customers end devices. The company’s expected earnings growth rate for the current year is 13.8% against the Zacks Security industry’s estimated earnings decline of 15.1%.
The Zacks Consensus Estimate for its current-year earnings has climbed 2.2% over the past 60 days. Fortinet sports a Zacks Rank #1.
LG Display Co., Ltd. LPL develops TFT-LCD and OLED technology-based display panels. The company, belonging to the Zacks Computer - Peripheral Equipment industry, has an expected earnings growth rate of 45.5% in the current quarter.
The Zacks Consensus Estimate for its current-year earnings has climbed 4.4% over the past 60 days. LG Display sports a Zacks Rank #2 (Buy).
Logitech International S.A. offers pointing devices like wireless mouse and trackball, keyboards, PC webcams and more. The company, belonging to the Zacks Computer - Peripheral Equipment industry, has an expected earnings growth rate of 5.1% in the current year. The Zacks Consensus Estimate for its current-year earnings has climbed 3.7% over the past 90 days. Logitech carries a Zacks Rank #3 (Hold).
Mercury Systems, Inc. MRCY offers desktops, notebooks, displays, projectors and peripherals. The company, belonging to the Zacks Computer - Peripheral Equipment industry, has an expected earnings growth rate of 17.4% in the current year. The Zacks Consensus Estimate for its current-year earnings has climbed 1.9% over the past 90 days. Mercury Systems carries a Zacks Rank #3.
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