As June progresses, the high-tech hardware market presents investors with an exciting opportunity to take advantage of the rapid growth in smart city projects and advancements in GPU technology. Therefore, I think high-tech hardware stocks Dell Technologies Inc. (DELL), HP Inc. (HPQ), and Quantum Corporation (QMCO) are ideal buys.
The computer hardware market is expected to be supported by rapid growth in investments in smart city projects in many countries of the world. By integrating hardware components such as sensors, cameras, and advanced analytics, cities can effectively monitor and manage traffic patterns, smoothing commutes and improving mobility for residents.
The computer hardware market is expected to grow at a CAGR of 6.6% to reach $909.8 billion by 2027.
Additionally, modern GPUs are highly efficient at computer graphics operations and image processing, and their highly parallel architecture makes them more efficient than general-purpose CPUs for algorithms that process large blocks of data in parallel. Masu.
As key players in the industry adopt effective strategies, the market is expected to further expand, creating numerous opportunities for advancement. As of 2023, the global graphics processing unit market is estimated to be $22.22 billion and is expected to reach $40.1 billion in 2028 at a CAGR of 10.3%.
Let’s take a look at the brands listed above.
Dell Technologies, Inc. (Dell)
DELL designs, develops, manufactures, markets, sells and supports a variety of comprehensive and integrated solutions, products and services in the Americas, Europe, the Middle East, Asia and internationally. The company operates through two segments: Infrastructure Solutions Group and Client Solutions Group.
On May 23, 2023, DELL introduced Dell NativeEdge, an edge operations software platform designed to help enterprises simplify and optimize secure edge deployments. Customers can streamline edge operations across thousands of devices and locations, from the edge to core data centers and multiple clouds.
DELL’s trailing 12-month asset turnover ratio was 1.13x, which is 85.6% higher than the industry average of 0.61x. The trailing 12-month EBIT margin was 5.45%, which was 25.2% higher than the industry average of 4.35%.
DELL pays $1.48 per year in dividends. This translates to a yield of 3.16% at current prices, which is higher than the four-year average dividend yield of 0.60%.
DELL’s total net revenues for the fiscal first quarter ended May 5, 2023 were $20.92 billion. Gross profit margin was $5.02 billion. Net income was $578 million and non-GAAP EPS was $1.31.
DELL’s fiscal second quarter EPS, ending July 2023, is expected to be $1.13. The company’s revenue for the quarter is expected to be $20.84 billion. He’s also beat EPS estimates in each of his subsequent four quarters, which is great.
DELL stock rose 25.4% over the past three months, closing at $47.66.
DELL’s POWR rating reflects DELL’s promising outlook. The stock has an overall rating of “B”, which equates to a “buy” according to our proprietary rating system. POWR ratings are calculated by considering 118 different factors, with each factor weighted to the best degree.
The stock has a B grade for sentiment and value. In the Technology – Hardware industry he is ranked 9th out of 44 companies.
In addition to the above, we also evaluated DELL for stability, growth, momentum, and quality. Get all reviews for DELL here.
HP Co., Ltd. (HPQ)
HPQ provides personal computing and other access devices, imaging and printing products, and related technologies, solutions and services in the United States and internationally. The company operates through three segments: Personal Systems; Personal Systems; printing; and business investment.
On May 2, 2023, HPQ announced new automation solutions and expanded materials, software, and services to help customers scale 3D printed part production. HP also promoted several current Digital Manufacturing Network members to the exclusive group of HP Digital Manufacturing Partners.
On March 19, 2023, HPQ announced HP Wolf Connect, an IT management connectivity solution that provides resilient and secure connectivity1 to remote PCs. This allows IT to manage devices even when they are powered off or offline.
HPQ’s trailing 12-month asset turnover ratio of 1.47x is 142.9% higher than the industry average of 0.61x. His net profit margin for the past 12 months was 4.75%, which is 136.2% higher than his industry average of 2.01%.
HPQ’s net revenue for the fiscal second quarter ended April 30, 2023 was $12.91 billion, and net income was $1.07 billion, an increase of 6.6% year over year. Adjusted net income per share was $0.80. Non-GAAP operating income was $1.21 billion.
Street expects HPQ to report EPS of $0.85 for the fiscal third quarter ending July 2023. The company’s sales for the quarter are expected to be $13.4 billion.
Shares have increased 11.4% since the beginning of the year, closing at $29.93.
HPQ’s solid outlook is reflected in its POWR rating. The stock has an overall rating of B, which equates to a Buy according to our proprietary rating system.
HPQ value is B grade. It ranks 12th in the industry.
Click here to see additional POWR Ratings (Growth, Sentiment, Stability, Quality, Momentum) for HPQ.
Quantum Co., Ltd. (QMCO)
QMCO provides products for storing and managing digital video and unstructured data in the Americas, Europe, the Middle East, Africa, and Asia Pacific.
On April 3, 2023, QMCO announced the launch of Quantum Myriad, an all-flash, scale-out file and object storage software platform for enterprises.
Myriad’s cutting-edge cloud-native architecture harnesses the power of innovative application frameworks and design to unlock previously unimaginable possibilities. This cutting-edge solution goes beyond the limitations of hardware-centric design and provides a seamless, user-friendly experience.
March 1, 2023 QMCO, an industry leader in cloud intelligence analytics, joins the industry leader in cloud intelligence analytics to provide certified solutions that deliver real-time cloud intelligence using video surveillance data captured and stored by Quantum’s unified surveillance platform. We announced a partnership with WaitTime.
QMCO-certified WaitTime AI software effectively executes on USPs and is easy to deploy for organizations looking to maximize the value of their video surveillance data, including extracting cloud intelligence insights to deliver better customer experiences .
The asset turnover ratio for the most recent 12 months was 1.99x, which is 227.2% higher than the industry average of 0.61x.
QMCO’s total revenue for the fourth quarter of its fiscal year ended March 31, 2023 was $105.34 million, an increase of 10.6% compared to the same period last year. Non-GAAP gross profit increased 2.2% year over year to $37.41 million, and adjusted EBITDA increased 145.2%. The year-on-year increase was $1.04 million.
Analysts expect QMCO to report sales of $97.03 million for the fiscal first quarter ending June 2023. He’s also exceeded revenue estimates in each of the last four quarters, which is great.
Shares rose 8.4% over the past month, closing at $1.03.
QMCO’s strong fundamentals are reflected in its POWR Rating. The stock has an overall rating of B, which equates to a Buy according to our proprietary rating system.
QMCO also has a B grade of Growth. It ranks 16th in the industry.
Click here to access additional ratings on QMCO’s Value, Momentum, Stability, Sentiment and Quality.
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DELL stock was trading at $47.47 per share Thursday morning, down $0.19 (-0.40%). Year-to-date, DELL has increased his 20.01%. In comparison, the benchmark S&P 500 index rose 12.13% during the same period.
About the author: Nidhi Agarwal
Nidhi has a passion for capital markets and asset management, which led her to pursue a career as an investment analyst. She has a bachelor’s degree in finance and marketing and is in the CFA program. Her fundamental approach to stock analysis helps investors identify the best investment opportunities. more…
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