The retail sector has been one of the worst affected by the pandemic. However, some sections have still managed to survive the onslaught. Give that an increasing number of people became dependent on technology during the pandemic, consumer electronic goods sold like hot cake during this period.
From air-conditioners, personal computers to air purifiers, television sets, smartphones and laptops, demand for electronic goods went through the roof. And it is likely to keep soaring in 2021 too.
Consumer Electronic Retail Sales to Grow
According to a new forecast by Consumer Technology Association (CTA), published in Barron’s, consumer electronic retail sales are projected to grow 4.3% to $461 billion in 2021. The study further says that sales of products, such as streaming video, which rose during the pandemic are likely to see another good year.
The consumer electronics market is also set to gain again this year on products like videogames. The CTA also expects spending on streaming services and software to jump 11% to $112 billion in 2021. This includes spending growth of 15% on video streaming services and 19% on audio streaming. Spending on videogames will be the highest at $47 billion.
Particular Products Driving Sales
Not all but a particular few products have been helping the consumer electronics market. Given that people are still confined to their homes, spending on video and audio streaming and videogames have gone up. Also, sales of air-purifiers and air conditioners saw impressive growth last year.
The work and learn-from-home culture saw sales of laptops and desktops hitting a record high last year. The CTA sees rise of 1% in total units of laptop shipments to 69 million in 2021, while the health and fitness category, which includes smartwatches and trackers is expected to jump 6% to $9 billion in 2021.
Sales of consumer electronic goods have been on the rise and the market is likely to grow. Given this situation it would be prudent to invest in these five stocks. Each of the stocks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Koninklijke Philips N.V. PHG operates as a health technology company worldwide. The company manufactures smart air purifiers and humidifiers. The products come with HEPA filters for increased protection.
The company’s expected earnings growth rate for next year is 12.7%. The Zacks Consensus Estimate for current-year earnings has improved 10.3% over the past 60 days. The company sports a Zacks Rank #1.
Apple Inc. AAPL business primarily runs around its flagship iPhone. However, the Services portfolio, which includes revenues from cloud services, App store, Apple Music, AppleCare, Apple Pay, and licensing and other services, has now become the cash cow.
The company’s expected earnings growth rate for the current year is 17.1%. The Zacks Consensus Estimate for current-year earnings has improved 16.6% over the past 60 days. Apple carries a Zacks Rank #2.
Carrier Global Corp. CARR is a provider of heating, ventilating and air conditioning, refrigeration, fire, security and building automation technologies. Following the COVID-19 outbreak, the company has launched a wide range of air purifiers for residential units, schools and for single apartments.
The company’s expected earnings growth rate for next year is 12.1%. The Zacks Consensus Estimate for current-year earnings has improved 0.6% over the past 60 days. Carrier Global has a Zacks Rank #2.
Dell Technologies Inc. DELL is a provider of information technology solutions. The company's operating segment consists of Client Solutions, Enterprise Solutions Group and Dell Software Group. The Client Solutions segment includes sales to commercial and consumer customers of desktops, thin client products, notebooks as well as services and third-party software and peripherals of Client Solutions hardware.
The company’s expected earnings growth rate for the current year is 1.6%. The Zacks Consensus Estimate for current-year earnings has improved 19.5% over the past 60 days. Dell has a Zacks Rank #1.
HP Inc. HPQ company is a leading global provider of personal computing and other access devices, imaging and printing products, and related technologies, solutions and services to individual consumers, SMBs and large enterprises, including customers in the government, health and education sectors.
The company’s expected earnings growth rate for the current year is 17.1%. The Zacks Consensus Estimate for current-year earnings has improved 16.6% over the past 60 days. HP has a Zacks Rank #2.
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