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Chicago, IL – July 9, 2025 – Today, Zacks Equity Research discusses LG Display LPL, Immersion IMMR and TransAct Technologies TACT.
Industry: Computer Equipment
Link: https://www.zacks.com/commentary/2567001/3-stocks-to-watch-in-a-thriving-computer-peripheral-equipment-industry
The Zacks Computer-Peripheral Equipment industry players like LG Display, Immersion and TransAct Technologies are well-poised to benefit from the growing demand for professional gaming accessories, touchscreen and wireless devices, smart glasses and RFID (Radio Frequency Identification) solutions. A continuously improving shipment of personal computers (PCs) bodes well for PC peripheral market prospects. Moreover, the solid demand for 3D-printed health equipment like face shields, nasal swabs and ventilator parts has been a tailwind.
However, the industry has been suffering from macroeconomic headwinds, including inflationary pressures and high interest rates. These have induced sluggishness in IT spending, affecting the demand for computer peripherals. Moreover, the near-term prospects of the PC industry seem highly volatile, given an uncertain environment triggered by the U.S. government’s new tariff policies.
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 come up with innovative and relevant products to meet the current demand trend. This is strengthening their product portfolios.
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.
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. Also, the growing usage of advanced 3D technologies across multiple industries, including medical, aerospace and automotive, is a major 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 like the Asia Pacific and the Middle East & Africa through low-cost quality products boosts growth prospects.
Improving Commercial PC Demand to Aid Prospects: An improvement in commercial PC demand is likely to aid the computer peripherals industry’s prospects in the near term. Acceleration in PC refresh ahead of the end of Microsoft’s Windows 10 support in October 2025 and rising interest in PCs equipped with on-device AI capabilities are likely to drive demand for commercial PCs. This will provide further growth momentum to the computer peripherals equipment industry, as PCs are the main sales booster for companies in this space.
Macroeconomic Headwinds Might Hurt IT Spending: Still-high interest rates and protracted inflationary conditions are hurting 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. Increased tariffs on imports from China could raise costs for both suppliers and end-users in the coming months. This does not bode well for the Computer-Peripheral Equipment market’s prospects 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 looking to improve their sales and marketing capabilities, particularly by increasing their sales force. Elevated operating expenses to capture more market share are likely to dent margins in the near term.
The Zacks Computer-Peripheral Equipment industry is housed within the broader Zacks Computer and Technology sector. It carries a Zacks Industry Rank #57, which places it in the top 23% 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 picture.
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 declined 7.1% during this period. The S&P 500 and the broader sector have risen 12.3% and 10.2%, respectively, over the same time frame.
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 0.62X compared with the S&P 500’s 5.28X and the Zacks Computer and Technology sector’s 6.65X.
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.
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 #1 (Strong 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 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 19 cents per share, narrower than the loss of 26 cents projected 60 days ago. The stock has declined 0.8% over the past year.
Immersion: The company is a trailblazer in the flourishing haptic technology space, which provides tactile feedback for several industries, such as gaming, automotive and virtual reality (VR). The demand for haptic technology is growing, and IMMR’s strong intellectual property portfolio — backed by several patents — puts it in a promising position to gain from this growth.
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.
Immersion’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 22.7% in the past 12 months.
LG Display: This Seoul, Republic of Korea-based company primarily manufactures and sells thin-film transistor liquid crystal display panels in a range of sizes and specifications, primarily for use in televisions, notebook computers and desktop monitors, as well as for handheld application products, such as mobile phones, and medium and large-size panels for industrial and other applications, including entertainment systems, portable navigation devices, e-paper, digital photo displays and medical diagnostic equipment.
LG Display is riding on the healthy demand for its display panels from PC vendors. Recent data releases by International Data Corporation depict that PC vendors have witnessed increasing PC shipments for the past six quarters. Furthermore, the research firm’s prediction of a 4.1% overall increase in 2025 PC shipments bodes well for LG Display’s prospects. The solid sales of smartphones are also likely to spur demand for this Zacks Rank #3 company’s display panels.
LG Display supplies products to original equipment manufacturers and multinational corporations. The Zacks Consensus Estimate for its 2025 bottom line is pegged at earnings of 25 cents per share, unchanged over the past 60 days. The stock has plunged 26.6% in the past year.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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This article originally published on Zacks Investment Research (zacks.com).
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