Tech stocks dragged major stock indices lower last week. Rising inflation and fear surrounding the COVID-19 omicron variant fueled the downtrend. However, Dell (DELL), HP (HPQ), Seagate Technology (STX) and NetApp (NTAP) computer hardware stocks have all risen in price due to continuing hybrid work trends and digital transformation. Therefore, we believe that these stocks could be ideal bets to avoid current market fluctuations. They are classified as Buy in our proprietary classification system. So, let’s examine these names.
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Tech stocks were hit again last week, dragging down the major stock indices. Fear surrounding the COVID-19 omicron, rising inflation and the ongoing supply chain crisis sent major tech stocks plummeting.
Additionally, according to Jamie Cox, Managing Partner of Harris Financial Group, “There are many carnage in tech stocks that they were somewhat overvalued, and that is what contributes mainly to the volatility. “
However, amid the downtrend in the market, investment in the modernization of workflows it should benefit computer hardware companies. Therefore, we believe that Dell Technologies Inc. (DELL), HP Inc. (HPQ), Seagate Technology Holdings plc (STX) and NetApp, Inc. (NTAP), who have recovered thanks to their strong finances and constant product innovations, could be solid options now.
Dell Technologies Inc. (DELL)
DELL, headquartered in Round Rock, Texas, is an information and technology solutions company operating through its Infrastructure Solutions Group (ISG); Customer Solutions Group (CSG); and VMware segments. Its segments offer a wide range of products and services, including digital transformation, hardware and software peripherals, hybrid and multi-cloud applications, and digital workspaces.
This month, DELL and Amazon Web Services, Inc. (AWS), an Amazon.com, Inc. company., helped bring Dell’s Cyber Recovery Vault to the AWS Marketplace with the launch of Dell EMC PowerProtect Cyber Recovery for AWS. Through this collaboration, DELL will offer customers a cyber recovery solution that isolates business-critical data from an airspace cyber vault attack, helping them protect their data from ransomware and cyberattacks.
DELL’s total revenue increased 20.8% year-over-year to $ 28.41 billion in its fiscal third quarter, ended October 29, 2021. The company Operating income it grew 5.2% compared to its value the previous year to $ 2.87 billion. Its net income increased 17.8% from the prior year quarter to $ 2.02 billion. Additionally, the company’s EPS increased 16.7% year-over-year to $ 2.37.
Analysts expect DELL’s revenue for its fiscal year 2022 to be $ 105.57 billion, representing an increase of 11.8% year-over-year. The company has an impressive track record of earnings surprises; it exceeded consensus EPS estimates in each of the four subsequent quarters. Additionally, its EPS is expected to grow 3% in the current year. Its share price has risen 4.2% over the last month.
DELL’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which is equivalent to a Buy on our proprietary rating system. POWR ratings evaluate stocks on 118 different factors, each with its own weights.
Additionally, the stock is rated A for value. We also rate DELL on sentiment, stability, quality, growth, and momentum. Click here to access all DELL ratings. DELL is ranked 18th out of 52 stocks on the B ranking. Technology – Hardware industry.
HP Inc. (HPQ)
HPQ provides and develops various components of hardware, software, and related services for consumers, small and medium-sized businesses, and large businesses in the United States and internationally. Personal systems; Impressions; and Corporate Investments are the segments through which the company works. HP is based in Palo Alto, California.
This month, HPQ introduced new tools for print service providers that should enable them to grow their digital businesses and implement Industry 4.0 through better automated tools to improve connectivity, productivity, and support customer growth tailored. print service providers move to capture business online.
During the fourth fiscal quarter, which ended October 31, 2021, HPQ’s net revenue increased 9.3% year-over-year to $ 16.68 billion. The company’s operating profit grew 24.8% from the prior year value to $ 1.24 billion. Its net profit increased 363.9% from the prior year quarter to $ 3.1 billion. And the company’s EPS increased 453.1% year-over-year to $ 2.71.
HPQ’s revenue is expected to increase 3.2% year-over-year to $ 65.55 billion in its fiscal year 2022. The company has an impressive record of surprise earnings; It beat consensus EPS estimates in each of the four-quarter trailing. Also, your EPS is expected to increase 10% in the current year. On the other hand, the stock has gained 55.3% in price in the last year and 50.2% year-to-date.
HPQ’s POWR ratings reflect this promising outlook. The stock has an overall B rating, which is equivalent to a Buy on our proprietary rating system. Additionally, the stock is rated B for value and quality.
In addition to the POWR ratings I just highlighted, you can see the HPQ ratings for Growth, Stability, Momentum, and Sentiment. here. The stock is ranked # 7 on the Technology – Hardware industry.
Seagate Technology Holdings plc (STX)
Headquartered in Dublin, Ireland, STX offers data warehousing technology and solutions in Singapore, the United States, the Netherlands, and internationally. The company offers hard disk drives (HDD) and a range of electronic data storage products. STX offers its solutions under the Seagate Ultra Touch, One Touch and Expansion product lines, also under the LaCie and Maxtor brand names.
This month, STX launched their new Exos X20 20 TB and IronWolf Pro 20 TB Conventional Magnetic Recording (CMR) -based Hard Drives (HDD). These hard drives should allow organizations to maximize the value of their data by increasing massive capacity data storage capacities.
STX’s revenue increased 34.6% year-over-year to $ 3.12 billion for its first fiscal quarter ending October 1, 2021. The company’s net revenue grew 124.8% from its value of the year prior to $ 544 million. Its EPS increased 152.7% compared to the quarter of the previous year to $ 2.35. Additionally, the company’s cash and cash equivalents totaled $ 991 million during the period.
STX’s revenue for its fiscal year 2023 is expected to be $ 12.28 billion, representing 1.7% year-on-year growth. The company has exceeded the EPS agreed in each of the four subsequent quarters. Its EPS is expected to increase at a rate of 4.2% next year. The stock has risen 41.2% in price over the past nine months and 69.7% over the past year.
It’s no wonder STX has an overall B rating, which equates to a Buy on our POWR rating system. In addition, the stock is rated B for Quality and Growth.
Click here to see additional POWR ratings for STX (value, momentum, stability and sentiment). STX is ranked # 21 on the Technology – Hardware industry.
NetApp, Inc. (NTAP)
Incorporated in 1992, NTAP in Sunnyvale, California, is a cloud-based, data-centric software company that provides cloud software, data services, and storage systems. NetApp Cloud Volumes, NetApp Keystone, and AFF All-Flash Array are some of the company’s featured products. NTAP also provides assessment, design, consulting, and implementation services.
Last month, NTAP acquired CloudCheckr, a cloud optimization platform that provides insight and visibility into the cloud and optimizes cloud resources. This acquisition should expand Spot by NetApp’s FinOps and SecOps offerings by combining the critical cost visibility, analytics and reporting of the CloudCheckr platform with Spot by NetApp’s ongoing cost optimization and automation services and continues investment NetApp on Spot by NetApp Innovation and Growth. briefcase.
NTAP’s net income increased 10.6% year-over-year to $ 1.57 billion for its fiscal second quarter ending October 29, 2021. The company’s gross profit grew 13.5% from its value. from the previous year to $ 1.06 billion. Its net income increased 63.5% from the prior year quarter to $ 224 million. Additionally, the company’s EPS increased 60.7% year-over-year to $ 0.98.
Analysts expect NTAP’s revenue for its fiscal 2022 to be $ 6.3 billion, representing a 9.7% year-over-year growth. The company has an impressive track record of earnings surprises; it exceeded consensus EPS estimates in each of the four subsequent quarters. Additionally, its EPS is expected to grow 24.4% in the current year. Its share price has risen 47% over the past year.
Ratings from NTAP POWR reflect this promising outlook. The stock is rated B overall, which is equivalent to a purchase on our proprietary rating system. Also, the stock is rated A for quality.
In addition to the POWR rating grades just highlighted, one can see NTAP’s ratings for growth, value, stability, sentiment, and momentum. here. NTAP is ranked n. 2 out of 3 stocks in rating A Technology – Storage industry.
Click here for our Cloud Computing Industry Report for 2021
Dell shares were trading at $ 59.12 a share Tuesday morning, up $ 0.37 (+ 0.63%). Year-to-date, Dell has gained 61.33%, compared to a 25.66% increase in the S&P 500 benchmark during the same period.
Author Bio: Priyanka Mandal
Priyanka is a passionate investment analyst and financial journalist. After earning a master’s degree in economics, her interest in financial markets motivated her to begin her career in investment research.
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