2 Computer Hardware Stocks Rated Strong Buy: Dell and HP

: DELL | Dell Technologies Inc News, Ratings, and Charts

DELL – The rise in remote working and learning activity last year has increased the demand for computer hardware products. Because this heightened remote work and play culture is expected to continue even in the post-pandemic economy, companies such as Dell Technologies (DELL) and HP (HPQ) should continue to witness surging revenue and earnings in the coming years.

Get Free Updates

Join thousands of investors who get the latest news, insights and top rated picks from StockNews.com!

2020 was a tumultuous year for the computer hardware industry. Pandemic-induced global lockdown measures negatively impacted the production and subsequent sales of personal computers and related accessories in the first quarter of 2020. However, the industry recovered quickly as people grew  accustomed to a remote lifestyle. In fact, the rising popularity of remote working indicates that the trend may be here to stay. Businesses are realizing that remote working can be more efficient and have been investing in permanent changes to maintain this arrangement even after the pandemic.

As a result, the computer hardware market is expected to grow at a CAGR of 9.4% year-over-year to $944.09 billion in 2021. Also, the wider roll out of 5G technology this year should contribute to the increasing demand for upgraded devices worldwide.

Dell Technologies Inc. (DELL) and HP Inc. (HPQ) are two renowned companies with a global market presence that operate in this space. Based on overall industry growth expectations over the coming years, we think these two companies have plenty of room to soar.

Dell Technologies Inc. (DELL)

DELL specializes in computer hardware products and software services in three segments: Infrastructure Solutions Group (ISG), Client Solutions Group (CSG) and VMware. Known for its desktop hardware and peripherals, the company also offers a wide range of cloud enabled data analytics services, infrastructure management services, and cybersecurity solutions.

On November 12, DELL entered a strategic partnership with FedEx Corporation (FDX) and Switch Inc. (SWCH) to develop exascale multi-cloud edge infrastructure services. This technology aims to minimize the latency in data transfer, thereby revolutionizing the cloud computing industry.

DELL’s revenues have increased 3% year-over-year to $23.48 billion in the fiscal third quarter ended October 30, 2020. Net income has risen 60% from the year-ago value to $881 million, while EPS has grown 64% from the same period last year to $1.08. The company’s adjusted EBITDA has increased 13% year-over-year to $3.23 billion over this period.

The consensus EPS estimate of $2.13 for the current quarter ending January 31, 2021 indicates a 6.5% improvement year-over-year. DELL has an impressive earnings surprise history as well; it beat the Street EPS estimates in three of the trailing four quarters. The consensus revenue estimates of $24.46 billion for the ongoing quarter represents a slight improvement from the year-ago value.

DELL has gained more than 185% since hitting its 52-week low $25.51 in March. The stock hit its 52-week high of $75.39 on December 18, 2020.

How does DELL stack up for the POWR Ratings?

A for Trade Grade

A for Buy & Hold Grade

B for Peer Grade

A for Industry Rank

A for Overall POWR Rating.

It is currently ranked #2 of 30 stocks in the Technology – Hardware industry.

HP Inc. (HPQ)

HPQ develops and sells personal computers and access devices and solutions internationally. The company operates in three segments – Personal Systems, Printing and Corporate Investments. In addition to computer hardware, HPQ offers software and customer support services, and  supports business incubation projects.

As the demand for computer hardware and technologies has risen significantly over the past year owing to the ballooning remote working and learning culture, HPQ reported impressive financials in the last reported quarter. The company’s non-GAAP net earnings has risen 18.9% sequentially to $835 million in the fiscal third quarter ended October 31, 2020. Net revenue has increased 6.7% from the prior quarter to $15.26 billion. EPS has grown 92.3% year-over-year to $0.50 over this period. On November 24, HPQ announced a dividend payout of $0.1938 for the first quarter of 2021 payable January 6, up 10% year-over-year.

The consensus EPS estimate of $0.66 for the current quarter ending January 31, 2021 indicates a slight improvement year-over-year. Moreover, HPQ beat the Street EPS estimates in each of the trailing four quarters, which is impressive. The consensus revenue estimate of $14.98 billion for the ongoing quarter represents  a 2.5% rise year-over-year.

HPQ has gained more than 95% to hit its 52-week high of $24.69 in December, since hitting its 52-week low of $12.54 in March.


DELL shares were trading at $72.39 per share on Monday afternoon, down $0.90 (-1.23%). Year-to-date, DELL has declined -1.23%, versus a -1.66% rise in the benchmark S&P 500 index during the same period.


About the Author: Aditi Ganguly


Aditi is an experienced content developer and financial writer who is passionate about helping investors understand the do’s and don'ts of investing. She has a keen interest in the stock market and has a fundamental approach when analyzing equities. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
DELLGet RatingGet RatingGet Rating
HPQGet RatingGet RatingGet Rating

Get Free Updates

Join thousands of investors who get the latest news, insights and top rated picks from StockNews.com!


Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

Is This ANOTHER Stock Market Bubble?

More and more experts are pointing to the stock market (SPY) being well above historical valuation levels. Then when you see the movement of stocks like Tesla its hard not to think of the tech bubble of 1999. So let’s review if this is indeed a bubble. And if so, then provide a game plan for how investors should ride it up and then parachute out before its too late. Read on below for more…

:  |  News, Ratings, and Charts

An ETF to Buy for the Autonomous Vehicle Revolution

A Biden administration should bolster the ongoing EV and autonomous vehicle trend through substantial capital inflows and tax subsidies. And, with this, as EV giants and start-ups outperform the broader market, the Global X Autonomous & Electric Vehicles ETF (DRIV) should, we think, provide optimal risk-return exposure.

:  |  News, Ratings, and Charts

4 Stocks Soaring Higher on Biden's Infrastructure Plan

U.S. President-elect Joe Biden's ambitious plans to address climate change through eco-friendly and sustainable infrastructure development is expected to be a key focus this year. As such, stocks like BHP (BHP), Caterpillar (CAT), Rio Tinto (RIO) and United States Steel (X) are soaring and should deliver stellar results in the near future. Let us look closer at these companies to see why.

:  |  News, Ratings, and Charts

The Stock of the Week is ???

Helen of Troy (HELE) is one of the most consistent growth companies around in the consumer goods space. Their earnings announcement last week reminded everyone that there is plenty of growth on hand and Wall Street is taking note. Read on for more...

:  |  News, Ratings, and Charts

4 Stocks Soaring Higher on Biden's Infrastructure Plan

U.S. President-elect Joe Biden's ambitious plans to address climate change through eco-friendly and sustainable infrastructure development is expected to be a key focus this year. As such, stocks like BHP (BHP), Caterpillar (CAT), Rio Tinto (RIO) and United States Steel (X) are soaring and should deliver stellar results in the near future. Let us look closer at these companies to see why.

Read More Stories

More Dell Technologies Inc (DELL) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All DELL News