Our Outlook for the Hardware Sector
There are still opportunities to be found in tech hardware.
Longtime technology investors will likely be familiar with what is often termed the "summer doldrums" for tech hardware shares. Historically, the summer months have seen a seasonal slowdown that has been particularly tough for many tech hardware subsectors as IT spending takes a summer pause, and share prices follow suit. We wouldn't be surprised to see weakness in the shares of many hardware companies should they not live up to the heightened expectations that are implied in the valuations of many firms. However, as long-term investors, we believe that the market's often myopic view of the short-term prospects of sectors and companies can provide investors with some attractive bargain-hunting opportunities.
John Slack does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.