The pandemic is a gift for the PC sector. City shutdowns are driving the need for working from home. People are no longer spending time in malls, movie theatres, or restaurants. Remote work forced people to upgrade their out-of-date computers.
The smartphone upgrade cycle is continuing, just like Qualcomm’s (NASDAQ:QCOM) revenue growth shows but PC sales will continue growing.
HP (NYSE:HPQ) posted revenue and raised its dividend by 10%. Revenue fell 1% Y/Y to $15.26 billion. It forecast Q1 GAAP EPS of up to 64 cents. Insider stock purchases from CEO Lores and Director Bennett paid off. The stock’s rise rewarded those two executives.
Dell posted revenue growing 3% to $23.5 billion. It earned $2.03 (non-GAAP). Both DELL and HPQ stock enjoyed an uptrend that began in March. Buying either of these stocks at these levels may have limited upside. The P/E now reflects the expectation of continued PC sales in 2021.
A vaccine for Covid-19 will put an end to the work from the home mantra. As people return to work, smartphone upgrades will accelerate. The pace of PC sales may slow. Investors may still speculate on PC stocks by buying on a dip.
