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Industry Description
The Zacks Computer-Peripheral Equipment industry comprises companies offering computer input, output and storage devices. These include keyboards, mice, LCD panels, smart glass, analog-to-digital imaging solutions, touch sensors, 3D printers & additive manufacturing and transaction-based printer products, among others. Moreover, video gaming accessories, including gaming mice, wired gaming headsets, in-ear gaming headphones and controllers for Xbox One and PlayStation, are offered by these companies. The highly competitive nature of the industry is encouraging participants to develop innovative and relevant products that meet the current demand trend. This is strengthening their product portfolios.
Trends Shaping the Future of the Computer-Peripheral Equipment Industry
Shift in Consumer Preference - A Key Catalyst: The gradual shift in consumer preference from mobile gaming to a more professional gaming experience is a major growth driver. The launch of advanced gaming devices and the rising popularity of e-sports leagues are expected to boost prospects. Markedly, e-sports is also likely to continue aiding the total addressable market in the gaming peripherals industry. In addition, the 3D printing market presents a favorable long-term investment opportunity as a large number of engineers, designers, architects and entrepreneurs are resorting to 3D solutions for primary designing and product modeling. Additionally, the increasing adoption of advanced 3D technologies across various industries, including medical, aerospace, and automotive, is a significant driving force for this industry.
Expanding Global Footprint: The expansion of the total addressable market bodes well for the industry participants. Deepening penetration into price-sensitive regions, such as the Asia Pacific and the Middle East & Africa, through low-cost, high-quality products boosts growth prospects.
Improving Commercial PC Demand to Boost Prospects: An increase in commercial PC demand is likely to benefit the computer peripherals industry’s prospects in the near term. Rising interest in PCs equipped with on-device AI capabilities is likely to drive demand for commercial PCs. The beginning of the PC refreshment cycle and Windows 11 upgrades are likely to remain key catalysts for PC market growth in the quarters ahead. This will provide further growth momentum to the computer peripherals equipment industry, as PCs are the primary drivers of sales for companies in this space.
Macroeconomic Headwinds May Impact IT Spending: High interest rates and prolonged inflationary conditions are affecting consumer spending. On the other hand, enterprises are postponing their large IT spending plans due to a weakening global economy amid ongoing macroeconomic and geopolitical issues. The U.S. government’s new tariff policies on imports could raise costs for both suppliers and end-users in the coming months. This does not bode well for the prospects of the Computer-Peripheral Equipment market in the near term.
Elevated Operating Expenses to Hurt Profitability: To survive in the highly competitive computer peripheral market, each player is aggressively investing in research and development to enhance their product portfolio and broaden their capabilities. Moreover, companies are seeking to enhance their sales and marketing capabilities, particularly by expanding their sales force. Elevated operating expenses, aimed at capturing more market share, are likely to dent margins in the near term.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Computer-Peripheral Equipment industry is housed within the broader Zacks Computer and Technology sector. It carries a Zacks Industry Rank #30, which places it in the top 12% of approximately 250 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates robust near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry’s position in the top 50% of the Zacks-ranked industries is a result of the positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are optimistic about this group’s earnings growth potential.
Given the bright industry outlook, several stocks are worth watching. However, before we present the stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock market performance and valuation.
Industry Outperforms S&P 500 But Lags Sector
The Zacks Computer-Peripheral Equipment industry has underperformed the S&P 500 composite and the broader Zacks Computer and Technology sector in the trailing 12 months.
The industry has soared 20.4% during this period. The S&P 500 and the broader sector have risen 17.2% and 28.3%, respectively, over the same time frame.
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Industry's Current Valuation
Based on the forward 12-month P/S, which is a commonly used multiple for valuing computer peripheral stocks, we see that the industry is currently trading at 0.90X compared with the S&P 500’s 5.40X and the Zacks Computer and Technology sector’s 7.01X.
Over the last five years, the industry has traded as high as 4.81X, as low as 0.20X and at the median of 0.74X, as the chart below shows.
4 Stocks in Focus
TransAct Technologies: The company designs, develops, manufactures and markets transaction-based printers and related products under the BOHA, AccuDate, Epic and Ithaca brand names. This Zacks Rank #2 (Buy) company focuses on five vertical markets — point-of-sale, gaming and lottery, financial services, kiosks and the Internet. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
TransAct Technologies is benefiting from the growing demand for its products and services amid accelerated digital transformation and business automation across organizations. The company's printers are trusted worldwide to provide crisp, clean transaction records from receipts, tickets and coupons, register journals and other documents.
The Zacks Consensus Estimate for the 2025 bottom line is pegged at a loss of 15 cents per share, narrower than the loss of 19 cents projected 60 days ago. The stock has risen 9.1% over the past year.
Identiv offers RFID, Internet of Things (IoT) devices and IoT software platforms. Its growing dominance in the RFID-enabled IoT business benefits top-line growth. The company is also benefiting from securing successful design agreements. Its technical proficiency in intellectual property, expertise in the RFID segment and ongoing deal wins position it well in the IoT market.
The Zacks Consensus Estimate for this Zacks Rank #2 company’s 2025 loss is pegged at 95 cents per share, narrower than the loss of $1.13 projected 60 days ago. Its shares have gained 3.1% over the past year.
Immersion’s technology is already integrated into more than three billion devices globally. Its impressive client base includes more than 150 licensed customers. This Zacks Rank #3 (Hold) company’s strong market presence solidifies its position as a key player in the haptic space.
IMMR’s partnerships are a major factor driving its market success. Licensing agreements with Sony Group, Samsung and Meta Platforms extend Immersion’s reach into VR, gaming and mobile markets.
The Zacks Consensus Estimate for fiscal 2026 earnings has remained unchanged at 42 cents per share over the past 60 days. IMMR stock has declined 19.9% in the past 12 months.
Logitech: It is a global leader in peripherals for personal computers and other digital platforms. The company develops and markets innovative products in PC navigation, Internet communications, digital music, home entertainment control, video security, interactive gaming and wireless devices.
Logitech’s back-to-back strong quarterly results have boosted investors’ confidence in its recovery from the post-pandemic downturn. The latest reported results for the first quarter of fiscal 2026 marked the sixth consecutive quarter of year-over-year sales growth after two and a half years of downturn post the pandemic-driven boom.
Increasing hybrid work trends are likely to boost demand for its video collaboration, keyboards & combos and pointing device tools. Thriving cloud-based video conferencing services continue to be its key catalyst. The rising adoption of new mobile platforms in both mature and emerging markets should fuel the demand for its peripherals and accessories. Its partnerships with cloud providers like Zoom Video and Microsoft are major upsides.
The Zacks Consensus Estimate for fiscal 2026 earnings has been revised upward by a penny to $5.04 per share over the past seven days. Shares of this Zacks Rank #3 company have soared 20.7% over the past year.
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This article originally published on Zacks Investment Research (zacks.com).
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