Hewlett-Packard reported results and an outlook that outstripped what Wall Street was expecting. Which smaller companies will benefit from HP’s surge? Rob Sanderson, director of research at ABR Investment Strategy, and Scott Kessler, senior director of IT equity research at Standard & Poor's, shared their views.
“You have secular growth in PCs,” Kessler told CNBC.
“The average PC is far older than it should be and it should be replaced.”
Kessler said the strengthening economy provides a good tailwind to all the companies in the PC supply chain.
In the meantime, Sanderson also expects good unit growth in PCs to continue.
“We really haven’t seen any enterprise cycle kick in," Sanderson said.
He said "companies like HP and Microsoft" expect "this corporate refresh to maybe kick in during the second half of the year.”
Recommendations:
Sanderson Likes:
Micron Technology
Sandisk
Seagate
Western Digital
Broadcom
Marvell
Kessler Likes:
Flextronics
Factset Research
Nice Systems
Shanda Interactive
MEMC Electronic Materials
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Disclosures:
No immediate information was available for Kessler or Sanderson.
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