The Zacks Computer-Peripheral Equipment industry players like Logitech LOGI, Immersion IMMR and TransAct Technologies TACT are well-poised to benefit from the growing demand for professional gaming accessories, touchscreen and wireless devices, smart glasses and RFID (Radio Frequency Identification) solutions. A continuously improving shipment of personal computers (PCs) bodes well for PC peripheral market prospects. Moreover, the solid demand for 3D-printed health equipment like face shields, nasal swabs and ventilator parts has been a tailwind.
However, the industry has been suffering from macroeconomic headwinds, including inflationary pressures and high interest rates. These have induced sluggishness in IT spending, affecting the demand for computer peripherals. Moreover, the near-term prospects of the PC industry seem highly volatile, given an uncertain environment triggered by the U.S. government’s new tariff policies.
Industry Description
The Zacks Computer-Peripheral Equipment industry comprises companies offering computer input, output and storage devices. These include keyboards, mice, 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 mice, wired gaming headsets, in-ear gaming headphones and controllers for Xbox One and Playstation, are offered by these companies. 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.
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 expected to boost prospects. Markedly, e-sports is also likely to 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 growing usage of advanced 3D technologies across multiple industries, including medical, aerospace and automotive, is a major driving force for this industry.
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.
Improving Commercial PC Demand to Aid Prospects: Improvement in commercial PC demand is likely to aid the computer peripherals industry’s prospects in the near term. Acceleration in PC refresh ahead of the end of Microsoft’s Windows 10 support in October 2025 and rising interest in PCs equipped with on-device AI capabilities are likely to drive demand for commercial PCs. This will provide further growth momentum to the computer peripherals equipment industry, as PCs are the main sales booster for the companies in this space.
Macroeconomic Headwinds Might Hurt IT Spending: Still-high interest rates and protracted inflationary conditions are hurting consumer spending. On the other hand, enterprises are postponing their large IT spending plans due to a weakening global economy amid ongoing macroeconomic and geopolitical issues. Increased tariffs on imports from China could raise costs for both suppliers and end-users in the coming months. This does not bode well for the Computer-Peripheral Equipment market’s prospects in the near term.
Elevated Operating Expenses to Hurt Profitability: To survive in the highly competitive computer peripheral market, each player is aggressively investing in research and development to enhance their product portfolio and broaden their capabilities. Moreover, companies are looking to improve their sales and marketing capabilities, particularly by increasing their sales force. Elevated operating expenses to capture more market share are likely to dent margins in the near term.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Computer-Peripheral Equipment industry is housed within the broader Zacks Computer and Technology sector. It carries a Zacks Industry Rank #92, which places it in the top 37% of approximately 250 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates robust near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry’s position in the top 50% of the Zacks-ranked industries is a result of the positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are optimistic about this group’s earnings growth potential.
Given the bright industry outlook, a number of stocks are worth watching. However, before we present the stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Underperforms S&P 500 and Sector
The Zacks Computer-Peripheral Equipment industry has underperformed the S&P 500 composite and the broader Zacks Computer and Technology sector in the trailing 12 months.
The industry has plunged 15.9% during this period. The S&P 500 and the broader sector have risen 6.5% and 2.8%, respectively, over the same time frame.
One-Year Price Performance
Industry's Current Valuation
Based on the forward 12-month P/S, which is a commonly used multiple for valuing computer peripheral stocks, we see that the industry is currently trading at 0.52X compared with the S&P 500’s 4.64X and the Zacks Computer and Technology sector’s 5.34X.
Over the last five years, the industry has traded as high as 4.81X, as low as 0.20X and at the median of 0.74X, as the chart below shows.
Trailing 12-Month P/S Ratio (Industry vs. S&P 500)
Trailing 12-Month P/S Ratio (Industry vs. Sector)
3 Stocks in Focus
Immersion: The company is a trailblazer in the flourishing haptic technology space, which provides tactile feedback for several industries, such as gaming, automotive and virtual reality (VR). The demand for haptic technology is growing, and IMMR’s strong intellectual property portfolio — backed by several patents — puts it in a promising position to gain from this growth.
Immersion’s technology is already integrated into more than three billion devices globally. Its impressive client base includes more than 150 licensed customers. This Zacks Rank #2 (Buy) company’s strong market presence solidifies its position as a key player in the haptic space. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Immersion’s partnerships are a major factor driving its market success. Its collaboration with Sony Group for the PlayStation 5’s DualSense controller has enhanced gaming experiences, highlighting the growing importance of haptic feedback in the entertainment sector. Licensing agreements with Samsung and Meta Platforms extend Immersion’s reach into VR, gaming and mobile markets.
The Zacks Consensus Estimate for fiscal 2025 earnings has been revised upward to $1.81 per share from $1.57 30 days ago. IMMR stock has risen 0.1% in the past 12 months.
Price and Consensus: IMMR
Logitech: It is a global leader in peripherals for personal computers and other digital platforms. The company develops and markets innovative products in PC navigation, Internet communications, digital music, home entertainment control, video security, interactive gaming and wireless devices.
Logitech’s back-to-back strong quarterly results have boosted investors’ confidence in its recovery from the post-pandemic downturn. The latest reported results for the third quarter of fiscal 2025 marked the fourth consecutive quarter of year-over-year sales growth after two and a half years of downturn post the pandemic-driven boom.
Increasing hybrid work trends are likely to boost demand for its video collaboration, keyboards & combos and pointing device tools. Thriving cloud-based video conferencing services continue to be its key catalyst. The rising adoption of new mobile platforms in both mature and emerging markets should fuel the demand for its peripherals and accessories. Its partnerships with cloud providers like Zoom Video and Microsoft are major upsides.
The Zacks Consensus Estimate for fiscal 2025 earnings has been revised upward by 4 cents to $4.77 per share over the past 60 days. Shares of this Zacks Rank #3 (Hold) company have declined 11.8% over the past year.
Price and Consensus: LOGI
TransAct Technologies: The company designs, develops, manufactures and markets transaction-based printers and related products under the BOHA, AccuDate, EPICENTRAL, Epic and Ithaca brand names. This Zacks Rank #3 company focuses on five vertical markets — point-of-sale, gaming and lottery, financial services, kiosks and the Internet.
TransAct Technologies is benefiting from the growing demand for its products and services amid accelerated digital transformation and business automation across organizations. The company's printers are trusted worldwide to provide crisp, clean transaction records from receipts, tickets and coupons, register journals and other documents.
The Zacks Consensus Estimate for the 2025 bottom line is pegged at a loss of 26 cents per share, wider from a loss of 17 cents projected 30 days ago. The stock has plunged 25.9% over the past year.
Price and Consensus: TACT
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