4 Tech Stocks Benefiting from Increased Screen Time

The arrival of the coronavirus has increased broadband usage by upwards of 80% on a daily basis.  In other words, people are spending much more time staring into screens of varying sorts.  In particular, people are using the internet on desktop and laptop computers at a higher frequency as they are stuck indoors for 90% of the day.  This trend is likely to spill over after quarantine ends simply because people have found that many more new websites and other web-based services to enjoy.  Computer gaming is also receiving a boost thanks to the forced quarantine.  This means computer hardware stocks are bound to increase in the days, weeks and months ahead.  Seagate Technology, HP, Logitech and Micron have the potential to trend upward as a result of the increased screen time.

Micron Technology (MU)

As tech geeks know, semiconductors are necessary for computing devices.  Smartphones and computers are flying off the shelves as the global lockdown continues.  This means the likes of MU stand to benefit.

MU is one of the top global DRAM and NAND memory chip makers.  These tech components are central to the manufacture of smartphones as well as cloud computing technologies.

Though MU has not yet returned to its pre-coronavirus trading level of $60, the stock has inched upward in the aftermath of the market-wide selloff in late March.  The analysts have set an average price target of $62.53 for MU, meaning the stock has more than 40% upside.

MU has a forward P/E ratio of 21, indicating it has solid value.  After all, as the talking heads on CNBC are fond of saying, a P/E ratio of 30 is the “new 15”, meaning P/E ratios are inflated across the board and no longer as meaningful as they were in prior decades.

Seagate Technology (STX)

Computers of all types require data storage tools.  Information storage and rapid retrieval is the name of the game.  STX is a power player in this space, providing hard disk drives, solid state drives and other data storage tools.  Though STX has a POWR Rating of C, it excels in the Peer Grade category with a B grade.  The POWR Ratings also have STX rated second overall out of eight stocks in the technology – storage space.

The analysts insist STX has 14% upside based on its current price of $47.  If you are hesitant to add STX to your portfolio, square your focus on its impressive fundamentals: a forward P/E ratio of 9 and a 5% dividend.  STX is clearly a stock worth buying and holding.

HP Inc. (HPQ)

Though there are plenty of incredibly cheap computers and printers on the market, many of those low-cost machines do not last longer than a year or two.  Whether the reduction in computer lifespan is the result of planned obsolescence or flawed engineering, the bottom line is consumers are taking a risk when shelling out hundreds or thousands of dollars for computer hardware.

HPQ stands above most of the crowded computer hardware competition, providing reliable and lasting desktops, laptops,  printers and other computer-related hardware.  The stock reached its 52-week high of $23 and change in late February just ahead of the coronavirus selloff.

Sadly, HPQ has not recovered from the market-wide drop.  The stock is currently trading at $14 yet the analysts insist a $20 price target is reasonable.  As detailed in this insightful Motley Fool article, HPQ is still a leader in the PC segment. There is a good chance the stock will gradually bounce back to its pre-coronavirus trading levels in the weeks and months ahead.

Logitech International (LOGI)

Take a trip to your local electronics store or office supply store and you will find all sorts of Logitech products.  This computer peripherals maker will enjoy quite the boost in business as a result of the coronavirus pandemic as people are glued to their screens while working from home, gaming and watching web-based entertainment.

Logitech has cornered the market on a wide array of computer peripherals, guaranteeing solid sales at least in the short-term.  The POWR Ratings have LOGI ranked #4 out of 28 technology – hardware stocks.  LOGI has an A grade in every single POWR Rating category.

Take a look at LOGI’s 6-month chart and you will find it was well on its way toward its 52-week high of $54.43 until investors far and wide exited their positions across the board.  My, oh my, has LOGI ever recovered.  The stock is now priced a mere $2 below its 52-week high and is likely to trend upward from here.  Look for LOGI to move toward TipRanks’ high forecast of $63 as 2020 progresses.

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MU shares rose $0.17 (+0.39%) in after-hours trading Wednesday. Year-to-date, MU has declined -19.06%, versus a -11.99% rise in the benchmark S&P 500 index during the same period.

About the Author: Patrick Ryan

Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More…

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