Computers are still a vital part of the world’s tech infrastructure. Smartphones have throttled some of the demand for computers, but computer stocks still have a future. As a whole, the tech sector had a fantastic 2019. Computer stocks also made solid gains this year.
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Best Computer Stocks to Buy for 2020
As we head into 2020, some computer stocks look promising and could be set to deliver solid gains to investors next year.
HP Inc. (HPQ)
The shares of Hewlett-Packard have underperformed this year, barely recording gains since the start of 2019. The stocks of the Palo Alto-based company is down by scarcely 1% since the beginning of the year.
Xerox has been trying to takeover HP, but the board has rejected the move so far. This comes despite HP performing well during its fourth fiscal quarter. The fourth-quarter revenue was $15.4 billion, which is 0.3% higher than in the same period last year. The annual revenue meanwhile stood at $58.8 billion, up 0.5% from the prior-year period.
The strong earnings report by HP could see the company’s stock perform well in the coming year. However, the talks of a Xerox takeover might not be going away soon.
Dell Technologies Inc. (DELL)
Dell is another legacy computer manufacturer that could perform well next year. Shares of Dell touched $69 back in May and the stock could recapture those highs soon. Dell has a solid computer business and it owns a large stake in VMWare, a high-tech cloud services business.
Late last month, Dell Technologies reported its third-quarter fiscal 2020 earnings. The non-GAAP earnings were $1.75 per share, which is 15% above the Zacks Consensus Estimate. Revenues were also up by 1.2% year over year to reach $22.93 billion. The growth in storage, commercial and VMware earnings could trickle into next year, which could see the stock perform well in 2020.
Lenovo Group Limited (LNVGY)
Lenovo manufactures computers and other related accessories. The company has underperformed on the stock market this year, and share prices are roughly flat since 2019.
Earlier this month, Lenovo reported its second-quarter fiscal 2020 earnings. The computer sales accounted for 78% of the company’s revenue, with other sectors taking the remaining 22%. Lenovo also maintained its status as the leading PC global vendor in the world, with over 24% market share.
Despite its struggles this year, growth in PC sales and the robust data center revenues could rally Lenovo next year.
Xerox Holdings Corp (XRX)
Xerox is one of the largest computer companies, with a presence in over 160 countries around the world. Unlike the other popular computer stocks, Xerox has recorded gains so far this year. The share price is up by 89% year-to-date, making it one of the best performing computer stocks.
The company recently launched a big to takeover HP. HP’s board rejected the deal, but Xerox decided to take their offer directly to shareholders. The Xerox bid values HP at $33.5 billion. Xerox says it expects revenues to grow by $1.5 billion if it successfully acquires HP.
Asustek Computers (ASUUY)
Asus is a Taipei-based computer and phone company that has seen remarkable growth this year. The company’s share price is up by 18% year and could move higher over the coming months.
Last month, Asus and Google partnered to work on a new project dubbed ‘Tinker Board’ single-board computers (SBCs). The computers are designed for developing small systems to work on AI inference applications such as image recognition. The partnership with Google could help Asus’s stock record gains in the coming year.
More Best Computer Stocks for 2020
Computer stocks have had a mixed year despite the tech sector rallying. However, things could change for the following computer stocks by next year. Subscribe to the Dork to follow everything on computer stocks. You can get even more stock market news by following the Stock Dork on Twitter and Facebook. Don’t miss another update, sign up for mobile Dork Alerts to get hot stock picks, insights, and analysis delivered directly to your phone.