The near-term outlook for companies in the Zacks Computer-Peripheral Equipment industry remains challenging. Growing concerns about an economic slowdown amid continued macroeconomic uncertainty and geopolitical tensions could weigh on business spending and demand. Persistent inflation and still-high interest rates are also making companies more cautious about IT budgets, which could limit spending on computer peripherals. At the same time, the U.S. government’s tariff policies and the ongoing conflict in the Middle East are adding to costs for suppliers and customers, creating another hurdle for demand. International Data Corporation’s (“IDC”) latest forecast for a decline in global PC shipments in 2026 is another concern, as PCs remain a key driver of demand for computer peripheral products.

Despite challenges, the industry is not without growth opportunities. Logitech International S.A. (LOGI Quick QuoteLOGI - Free Report) , Immersion Corporation (IMMR Quick QuoteIMMR - Free Report) and TransAct Technologies Incorporated (TACT Quick QuoteTACT - Free Report) appear better positioned to benefit from rising demand for professional gaming accessories, touchscreen products, wireless devices, audio equipment and smart glasses. The growing use of RFID technology is another positive factor. Businesses across retail, healthcare and logistics are increasingly using RFID to automate tracking, improve operational efficiency and deliver better customer experiences. These trends could help offset some of the pressure from weaker PC demand and cautious IT spending, giving select peripheral companies a path to continued growth.

Industry Description

The Zacks Computer-Peripheral Equipment industry comprises companies that offer 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. 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 develop innovative and relevant products that meet the current demand trend. This is strengthening their product portfolios.

Trends Shaping the Future of the 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. E-sports is also likely to continue aiding the total addressable market in the gaming peripheral industry. 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. The increasing adoption of advanced 3D technologies across various industries, including medical, aerospace and automotive, is a significant driving force for this industry.

Expanding Global Footprint: The expansion of the total addressable market bodes well for the industry participants. As per a report by The Business Research Company, the global computer peripherals equipment market size is projected to reach $189.54 billion by 2030 from $162.9 billion in 2025, indicating a CAGR of 3.2% during the period. Deepening penetration into price-sensitive regions, such as the Asia Pacific and the Middle East & Africa, through low-cost, high-quality products aids growth prospects.

PC Shipment Decline to Hurt Computer Peripheral Demand: The latest forecast of a decline in PC shipments in 2026 by IDC does not bode well for the computer peripheral equipment industry’s growth prospects in the near term. IDC projects that PC shipments in 2026 will plunge 11.3%, mainly due to supply shortages of key memory components. The main reason behind memory supply shortages is the explosive growth of artificial intelligence (AI). A decline in PC sales may negatively impact the industry’s growth momentum, as PCs are the main sales booster for computer peripheral products.

Macroeconomic Headwinds May Impact IT Spending: High interest rates and prolonged inflationary conditions are affecting 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. The U.S. government’s tariff policies on imports could raise costs for both suppliers and end-users. The ongoing war in the Middle East region could trigger an economic slowdown globally. This does not bode well for the prospects of the computer peripheral equipment market 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 portfolios and broaden their capabilities. Companies are seeking to improve their sales and marketing capabilities, particularly by expanding their sales force. Elevated operating expenses, aimed at capturing more market share, are likely to dent margins in the near term.

Zacks Industry Rank Indicates Bleak Prospects

The Zacks Computer-Peripheral Equipment industry is housed within the broader Zacks Computer and Technology sector. It carries a Zacks Industry Rank #235, which places it in the bottom 2% of nearly 250 Zacks industries.

The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all member stocks, indicates dim 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 2 to 1.

The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of the negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are pessimistic about this group’s earnings growth potential.

Despite the gloomy industry outlook, a few stocks are worth buying. However, before we present the top industry picks, it is worth taking a look at the industry’s shareholder returns and current valuation.

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 12.7% during this period. The S&P 500 and the broader sector have risen 21.7% and 31.2%, 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 0.72X compared with the S&P 500’s 4.77X and the Zacks Computer and Technology sector’s 6.12X.

Over the last five years, the industry has traded as high as 4.81X, as low as 0.20X and at the median of 0.71X, as the chart below shows.

Forward 12-Month P/S Ratio (Industry vs. S&P 500)

 

Forward 12-Month P/S Ratio (Industry vs. Sector)

3 Computer Peripheral Equipment Stocks to Watch

Logitech 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.

Increasing hybrid work trends are likely to boost demand for Logitech’s 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 peripherals and accessories. Its partnerships with companies like Zoom Video and Microsoft are major upsides.

The Zacks Consensus Estimate for fiscal 2027 earnings has been revised downward by 7 cents to $5.76 per share over the past 30 days. Shares of this Zacks Rank #3 (Hold) company have fallen 4.8% over the past year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Price and Consensus: LOGI

Immersion 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, positions it well to capitalize on 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 #3 company’s strong market presence solidifies its position as a key player in the haptic technology space.

IMMR’s partnerships are a major factor driving its market success. Licensing agreements with Sony Group, Samsung and Meta Platforms extend Immersion’s reach into VR, gaming and mobile markets.

The Zacks Consensus Estimate for fiscal 2027 earnings has remained unchanged at 26 cents per share over the past 30 days. IMMR stock has gained 5.9% over the past 12 months.

Price and Consensus: IMMR

TransAct Technologies designs, develops, manufactures and markets transaction-based printers and related products under the BOHA, AccuDate, 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 2026 bottom line is currently pegged at a loss of 4 cents per share, lowered from a loss of 5 cents expected 30 days ago. The stock has rallied 15.7% over the past year.

Price and Consensus: TACT