Zacks Industry Outlook Highlights: Logitech, Mercury Systems, Stratasys and Immersion – Yahoo Finance
For Immediate Release
Chicago, IL – February 16, 2022 – Today, Zacks Equity Research discusses Logitech LOGI, Mercury Systems MRCY, Stratasys SSYS and Immersion IMMR.
Industry: Computer – Peripheral
The Zacks Computer – Peripheral Equipment industry is showing signs of struggle as the demand for remote work and learning is declining, with vaccine availability helping economies to open up. As people stay less at home, the time spent on playing video games is also expected to drop, thereby hurting the demand for gaming accessories.
Nevertheless, Logitech, Mercury Systems, Stratasys and Immersion are a few industry participants well poised to benefit from the growing demand for professional gaming accessories, personal computer (PC) peripherals, touchscreen devices, smart glasses and RFID (Radio Frequency Identification) solutions. Moreover, the solid demand for 3D-printed health equipment like face shields, nasal swabs and ventilator parts has been a tailwind.
The Zacks Computer – Peripheral Equipment industry comprises companies offering computer input, output and storage devices. These include keyboards, mouse, 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 mouse, wired gaming headset, in-ear gaming headphone and controllers for Xbox One and Playstation are offered by these companies. Notably, 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.
3 Trends Shaping the Future of the Computer- Peripheral Equipment Industry
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 likely to boost the prospects.
Markedly, e-sports will also likely 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 coronavirus outbreak is resulting in massive demand for gaming equipment and 3D-printed medical equipment, which is a major driving force for this industry during these trying times.
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.
Evolving COVID-19 Situation to Hurt Near-Term Growth:The computer peripheral equipment industry is facing operational challenges posed by the coronavirus pandemic. Resurgence in COVID-19 cases due to the emergence of the Omicron variant is expected to cause some manufacturing, port and logistics disruptions in the near term. Moreover, the companies in the space are facing industry-wide component supply constraints, which are hurting their sales.
Zacks Industry Rank Indicates Bleak Prospects
The Zacks Computer-Peripheral Equipment industry is housed within the broader Zacks Computer and Technology sector. It carries a Zacks Industry Rank #155, which places it in the bottom 39% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of …….