From Nasdaq: 2024-05-17 10:38:00

The Zacks Computer-Mini Computers industry faces challenges from waning consumer PC demand and geopolitical issues, while benefiting from strong enterprise device demand, especially for laptops and smartphones. Key catalysts include 5G smartphones and AI-driven devices. 3D printing solutions are also seeing robust demand. However, industry prospects are weak, with a Zacks Industry Rank of #222 depicting dim near-term outlook.

Industry companies offer smartphones, desktops, laptops, printers, wearables and 3D printers with various operating systems like iOS, MacOS, Windows, and Android. Smartphones are gaining popularity due to larger screens, better displays, and faster processors from companies like Apple and Qualcomm. Wearable devices with biometric security features are also growing in demand.

Enterprise adoption remains strong, especially for laptops and tablets, as hybrid work environments become more prevalent. The industry is also seeing increased demand for smartphones and tablets with improved screen sizes and mobile processors. However, PCs face a risk of extinction due to stiff competition from smartphones. Emerging technologies like 5G and AI could help expand the PC market.

The Zacks Computer-Mini Computers industry has lagged behind the broader technology sector and S&P 500 in terms of stock performance over the past year. The industry is currently trading at a forward P/E of 26.62X, higher than the sector average. Apple and HP are two stocks worth watching in the industry, with Apple benefiting from expanding services and HP focusing on innovative product launches to maintain market presence.



Read more at Nasdaq: 2 Stocks to Watch From the Challenging Computer Industry