The technology sector is one of the most dynamic in the stock market. Many different subsectors exist, and these companies operate very differently from one another. As such, tech investors must know which subsectors are growing and shrinking to ensure they invest in the right stocks at the right time. Read on to learn about some of the top technology hardware, Storage, and peripherals stocks you should buy now and why. With so many tech stocks available on the market, it can be challenging to determine which are great investments and which are not worth your money. But with proper research, you can find hidden gems that will positively impact your portfolio over time. In this article, we’ll go over four stocks perfect for investors looking to add a bit of technology to their portfolio right now.
Logitech International (LOGI)
Logitech International is one of the world’s largest computer accessories makers. The company’s product portfolio includes computer mice, keyboards, computer audio, networking gear, webcams, and more. In these products, Logitech has found a simple and effective business model. The company sells its products directly to consumers through e-commerce sites like Amazon and its website, as well as through retailers like Best Buy, Staples, and Walmart. Logitech’s business model is highly scalable, as it doesn’t require the company to maintain a large inventory or invest in expensive marketing campaigns. As a result, Logitech has seen its revenue and profit soar in recent years. With revenue of $4.4 billion in its latest fiscal year, Logitech is the biggest company on this list. The company’s shares are also the most expensive, but with a forward P/E ratio of just 15.3, Logitech is still a good value for investors willing to pay up for growth.
Super Micro Computer (SMCI)
Super Micro Computer is a leading manufacturer of computer servers and data storage systems used in data centers worldwide. The company’s products help businesses and organizations store and process vast amounts of data, such as power grids, banks, and extensive online platforms like Amazon Web Services. Super Micro’s products are sold directly to North American and Asia businesses. In the U.S., the company’s products are primarily sold to data center operators like Amazon, Microsoft, and Facebook, which use the hardware to operate their online data storage and computing services. In recent years, the demand for data storage systems has exploded. This is mainly due to cloud computing, whereby companies and organizations store their data remotely and access it from any location. Cloud computing requires large amounts of data storage infrastructure, and Super Micro’s products are vital to this system. Unfortunately, excellent Micro’s products are also highly specialized and customized for each customer’s order, making them expensive to produce. This is a double-edged sword for the company, as it helps the business maintain a high-profit level and limits its scalability. Despite these drawbacks, Super Micro’s shares appear to be a good investment. The company has posted consistent revenue growth over the past five years and is expected to continue.
Canon is one of the largest electronics companies in the world and a leading manufacturer of imaging and visual products, including cameras and printers. The company also operates in other sectors, including semiconductors and medical devices and equipment. In recent years, Canon has seen significant growth in its imaging and visual products business. This is partly due to the rising demand for high-end digital cameras, particularly for professional photographers. Canon has responded by investing heavily in research and development, redesigning its product lineup to include more high-end cameras, and expanding its network of retail stores. As a result, since 2013, Canon has increased its annual revenue from $40 billion to $50 billion. The company also generates significant cash flow, with $5.3 billion in operating cash flow in the last fiscal year.
Pure Storage (PSTG)
Pure Storage is a leading provider of computer flash storage systems for data centers. The company’s products are used to increase the speed of data storage and access and decrease the energy required by servers and other data center equipment. Pure Storage’s products are high-end and designed for data center use. The company’s customers are primarily cloud computing companies, including Amazon and Microsoft. In recent years, the demand for data storage and processing power has surged as cloud computing grows in popularity. As a result, Pure Storage has seen its sales and profits climb rapidly. The company generated $1.1 billion in revenue in its most recent fiscal year and has a strong cash position, with $1.8 billion in cash on the balance sheet.
The technology industry is vast and diverse, comprising companies in various subsectors. Technology hardware, Storage, and peripherals are some of the most dynamic subsectors within technology, as these companies rely heavily on developing other technology products. As such, these stocks are more susceptible to changes in the technology market than some other sectors. This makes them more risky investments, but it can also make for excellent growth stocks for investors willing to take on a bit of risk for a large potential reward.