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The Zacks Computer – Micro Computers industry is experiencing mixed demand, with participant companies like Apple (AAPL) and HP (HPQ) benefiting from steady enterprise device demand, including laptops and 5G-enabled smartphones. The industry is projected to see AI-enabled PC shipments reach 48 million in 2024, representing 18% of total PC shipments, while broader demand for consumer PCs remains weak due to geopolitical challenges, inflation, and declining demand in China. The industry’s Zacks Industry Rank is #55, placing it in the top 22% out of over 250 Zacks industries.
Over the past year, the Zacks Computer – Micro Computers industry has gained 7.9%, underperforming the S&P 500’s 10.1% and the broader technology sector’s 11.6%. As of now, the industry trades at a forward 12-month P/E ratio of 28, compared to the S&P 500’s 20.19 and the sector’s 24.64. Analysts are optimistic about the prospects for participants in this sector, as evidenced by a 2.4% upward revision in the 2024 earnings estimate since February 29, 2024.
In related developments, Apple’s consensus earnings estimate for fiscal 2024 has risen by 1.4% to $6.68 per share, while HP’s earnings estimate remains steady at $3.45 per share. Both companies have seen positive year-to-date stock performance, with Apple gaining 9% and HP 6.4%.
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