The coronavirus pandemic is keeping everyone indoors, helping the work-and-learn from home culture gain prominence. If health experts are to be believed, the situation isn’t going to change anytime soon and this may be the new normal.
Logitech International SA LOGI on May 11 reported a big jump in sales of computer products during its fourth quarter as more people worked from home and families turned to technology to keep in touch during the coronavirus crisis. Work and learn from home has become the new way of life, spurring demand for computer hardware, peripherals, network software and cloud business surging.
Logitech Sales Jump
Logitech said sales of video collaboration equipment jumped 60% and sales of webcams rose by 32%. These were the star performers as group sales rose 14% to $709.2 million during the fiscal fourth quarter. Also, sales of gaming accessories — keyboards, mouse and headsets increased 8%, as people locked down at home tried to relax.
Logitech also said that families connected via video conferencing as lockdown restrictions prevented them from seeing loved ones during the pandemic. The company said schools were holding lessons via video conference, while hospitals were using technology to lower the risk of infection. This helped boost demand for video collaboration equipment.
Computer Hardware, Network Software Market to Grow
Demand for video collaboration products has surged over the past three months as schools and offices are shut in a bid to prevent the spread of coronavirus. This has seenlocked-down staff relying on video conferencing equipment, software and webcams.
The global computer hardware market is expected to witness a CAGR of 5% from 2021 and reach $1036.6 billion in 2023 according to analysis by top players, Hewlett Packard Enterprise Company HPE, Apple, Inc. AAPL and International Business Machines Corporation IBM.
In April, market research group NPD tracked a 23% year-over-year increase in general consumer tech sales for the week ending Apr 18 to nearly $1.8 billion. Per the study, work-from-home tech sales were up 67% in April compared with 53% in March, and monitor sales doubled in five weeks to nearly 1.3 million units.
The at-home culture is here to stay for a longer time than expected with no signs of the pandemic easing. Demand of computer hardware and network software will only grow in such a situation, helping these four stocks to gain.
Logitech International is a global leader in peripherals for personal computers and other digital platforms, which develops and markets innovative products in PC navigation, Internet communications, digital music, home-entertainment control, video security, interactive gaming and wireless devices.
The company’s expected earnings growth rate for the current year is 4.5%. The Zacks Consensus Estimate for current-year earnings has improved 0.5% over the past 60 days. Logitech sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
GigCapital Inc KLR manages multi-channel integrated communication services, through its proprietary platform, comprising messages, push notifications, e-mail, instant messaging, voice services and chatbots.
The company’s expected earnings growth rate for the current year is 8.3%. The Zacks Consensus Estimate for current-year earnings has improved 13% over the past 60 days. GigCapital sports a Zacks Rank #1.
Mercury Systems Inc MRCY produces hardware products, including components such as power amplifiers and limiters, switches, oscillators, filters, equalizers, converters, chips, integrated circuits, and memory and storage devices.
The company’s expected earnings growth rate for the current year is 17.4%. The Zacks Consensus Estimate for current-year earnings has improved 1.4% over the past 60 days. Mercury Systems carries a Zacks Rank #2 (Buy).
CACI International Inc CACI delivers IT applications and infrastructure to improve communications and secure the integrity of information systems and networks, enhance data collection and analysis, and increase efficiency and mission effectiveness.
The company’s expected earnings growth rate for the current year is 17.1%. Its shares have gained 3.4% over the past 30 days. CACI International carries a Zacks Rank #2.