The computer hardware industry is dealing with the ramifications of a sell-off of technology stocks, which marked the end of its stellar rally over the past year. However, the continued adoption of a remote (and hybrid) working culture should allow the computer hardware industry to deliver solid revenues and earnings in the coming quarters. Furthermore, the ongoing 5G deployment is contributing significantly the rising demand for upgraded computer hardware that is compatible with the next-generation network.
The tech-sell off is expected to be short lived, providing investors perfect entry points in computer hardware stocks with solid growth potential.
Companies like Logitech International S.A. (LOGI – Get Rating), NetApp, Inc. (NTAP – Get Rating), and Super Micro Computer, Inc. (SMCI – Get Rating) are expected to deliver solid returns in the upcoming months.
Founded in 1981 LOGI designs, manufactures and markets products that allow people to connect through music, gaming, video, computing and other digital platforms. It offers a range of gaming gears, including mice, keyboards, headsets, gamepads and steering wheels. Also, LOGI offers its products to a network of domestic and international customers including direct sales to retailers, e-tailers and indirect sales through distributors.
Last December, the company was named to the Dow Jones Sustainability Index (DJSI) Europe for the first time in recognition of its commitment to sustainable business practices. LOGI unveiled its lightest wireless esports gaming mouse—the Logitech G PRO X SUPERLIGHT in November.
To reduce its carbon impact, the company announced in November its commitment to incorporating post-consumer recycled plastic (PCR) into its products at scale. Also, in October Logitech G, one of its brands, announced a multi-year partnership with Riot Games, the creator of League of Legends game.
The company’s net sales have increased 84.7% year-over-year to $1.67 billion for the fiscal 2021 third quarter, ended December 31, 2020. Its non-GAAP gross profit has increased more than 122% year-over-year to $754.20 million. LOGI’s non-GAAP operating income was $476.26 million, which represents an improvement of more than 214% year-over-year. Its non-GAAP net income came in at $423.06 million, up 195.5% year-over-year. Also, its non-GAAP EPS increased 191.7% year-over-year to $2.45.
A consensus EPS estimate of $5.78 for its fiscal 2021 represents an improvement of 168.8% year-over-year. LOGI surpassed consensus EPS estimates in each of the trailing four quarters. The consensus revenue estimate of $4.86 billion for fiscal 2021 represents a 63.2% gain on a year-over-year basis. The stock has gained 173.4% over the past year and closed yesterday’s trading session at $100.76.
LOGI’s strong fundamentals are reflected in its POWR Ratings. The POWR Ratings are calculated by considering 118 different factors with each factor weighted to an optimal degree.
The stock has an A grade for Quality and a B grade for Momentum. We have also rated LOGI for Growth, Value, Stability and Sentiment. Click here to access all LOGI’s ratings.
LOGI is ranked #21 of 48 stocks in the B-rated Technology – Hardware industry.
Based in Sunnyvale, California NTAP provides software, systems and services to manage and store customer data. The company’s portfolio of products and services satisfy a range of customer workloads across different data types and deployment models. Its data management and storage offerings help manage business productivity, performance and profitability, while providing investment protection and asset utilization. NTAP serves a wide range of industries including media, telecommunications and healthcare industry.
This month , NTAP announced the general availability of…
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