As office-reopening plans are delayed due to the resurgence of COVID-19 cases, an extension of remote working should keep computer hardware in demand. Furthermore, the ongoing global, digital transformation is increasing dependency on reliable hardware. As such, the global computer hardware market is expected to grow at 6% CAGR to $1.18 trillion in 2025.
Given this backdrop, we think it could be wise to bet now on fundamentally sound computer hardware stocks Dell Technologies Inc. (DELL – Get Rating), Canon Inc. (CAJ – Get Rating), Toshiba Corporation (TOSYY – Get Rating), and Lenovo Group Limited (LNVGY – Get Rating).
DELL designs, manufactures, sells and supports information technology solutions, products, and services worldwide. The company operates through its Infrastructure Solutions Group (ISG); Client Solutions Group (CSG); and VMware. It also provides information security, cloud software and infrastructure-as-a-service solutions, cloud-based integration services, and financial services.
On May 5, 2021, DELL expanded its collaboration with global digital infrastructure company Equinix to broaden the availability of Dell Technologies APEX, DELL’s on-premises storage-as-a-service offering, via Equinix International Business Exchange data centers. This should enable businesses to simplify a public cloud experience while still maintaining control over their data. The companies expect to generate high demand for this service in the coming months.
DELL’s non-GAAP net revenue for its fiscal second quarter, ended July 30, 2021, came in at $26.13 billion, representing a 14.7% year-over-year improvement. The company’s non-GAAP gross profit was $8.34 billion, up 9.4% from the year-ago period. Its non-GAAP operating income was $2.81 billion for the quarter, up 7.4% from the prior-year period. While its non-GAAP net income increased 17.9% year-over-year to $1.91 billion, its non-GAAP EPS increased 16.7% to $2.24. As of July 30, 2021, the company had $11.72 billion in cash and cash equivalents.
A $2.32 consensus EPS estimate for the current quarter, ending October 31, 2021, indicates a 14.3% rise from the prior-year period. Analysts expect DELL’s revenue to increase 16.4% year-over-year to $27.39 billion in the current quarter. It surpassed the Street’s EPS estimates in each of the trailing four quarters. The stock’s EPS is expected to grow at a 7.8% rate per annum over the next five years.
The stock has gained 44.2% in price over the past year and 11.4% over the past six months. It closed yesterday’s trading session at $96.38.
DELL’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which equates to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
DELL has a B grade for Growth, Value, and Sentiment. In the 46-stock B-rated Technology – Hardware industry, it is ranked #3. To see additional POWR Ratings for Stability, Momentum, and Quality for DELL, click here.
CAJ is a Japan-based professional and consumer imaging solutions company and patent-holder of digital imaging technologies. The company operates through four business segments—Printing; Imaging; Medical; Industrial; and Others. Its products include networked multifunction devices, digital and analog copiers, computer peripherals, cameras and lenses, semiconductors, and broadcast and medical equipment.
CAJ acquired Redlen Technologies Inc., a leading developer, and manufacturer of high-resolution Cadmium-Zinc-Telluride (CZT) semiconductor radiation detector products, on September 9, 2021. Set to operate as…
Continue reading at STOCKNEWS.com