This story originally appeared on Zacks
The electronics industry has been gaining from the coronavirus pandemic-led work-from-home and learn-from-home trends.
The trends, which are expected to prevail in 2022 as well, are leading to the growing proliferation of laptops, notebooks, office equipment, and network peripherals, which have turned out to be boons for electronics companies.
An uptick in demand for 5G test solutions, which are required for 5G deployment, remains another major positive. Moreover, the current coronavirus outbreak-triggered remote-working wave globally, which is bolstering the demand for high-speed Internet services, bodes well for electronic companies that are enhancing their 5G efforts.
The rapid adoption of cloud computing technology and the rising need for data centers to ensure an efficient remote-working environment are benefiting electronics companies offering supply-chain solutions.
The solid adoption of AI and industrial revolution 4.0, which focus on interconnectivity, automation, Machine Learning (ML) and real-time data, is another tailwind.
The growing proliferation of fitness trackers and smartwatches, high-end smartphones, smart speakers, and smart cars and autonomous vehicles is fuelling the demand for electronic components.
Additionally, the increasing use of medical devices such as electronic monitoring devices, infrared laser thermometers and thermal imaging cameras throughout the world has been boosting the demand for electrical equipment.
We note that all the above-mentioned facts are expected to continue shaping the growth trajectory of the electronic industry. Moreover, these are creating an extremely conducive growth environment for electronic stocks in the near term.
Considering the upbeat scenario, we believe fundamentally strong electronics stocks offer lucrative investment opportunities.
Here we have picked three electronics stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
To narrow down the list further, we have selected those with an average estimate of Wall Street analysts less than or equal to two.
Additionally, we have focused on the stocks that are trading under $10 a share. Low-priced stocks may not seem attractive to some because fewer people follow them and less has been said about them. But it is also true that the low-priced stocks could be greatly rewarding based on their strong fundamentals.
Babcock & Willcox BW is benefiting from its expanding clean and renewable energy business. The company’s acquisition of solar installation and services firm, Fosler Construction Co., is expected to boost its prospects in the solar installation and construction services space in the United States.
Apart from this, the company’s increasing number of booked renewable waste-to-energy projects is likely to continue contributing well to top-line growth. Further, its strengthening environmental business and growing momentum across the decarbonization platform, namely ClimateBright, remain major positives.
Babcock & Willcox, which is a provider of energy and environmental technologies and services for the power and industrial markets, is further gaining from its well-performing renewable segment. The recent acquisition of VODA, a multi-brand aftermarket parts and service provider for energy plants, positions Babcock & Willcox well to rapidly penetrate the renewable service market of Europe.
Currently, the company flaunts a Zacks Rank #1. Additionally, BW has an average broker rating of 1.
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