Safe Stocks to Buy: Invest in Electronic Equipment Stocks in 2022


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The electronics industry is an indispensable cog in the global machinery. It touches almost every sector of the economy and is one of the fastest growing sectors today. The electronics industry has also been identified as a key driver of future economic growth in most developed economies, including the United States. There are several sub-sectors within this broad segment of the industry. Some examples include semiconductor manufacturers, computer hardware manufacturers, electronics wholesalers, and other companies whose primary business revolves around electronic devices or components. An investment in these stocks could present an opportunity to capture the growth we see continuing in the future.

Herc Holdings (HRI)

Herc Holdings Inc is one of the leading logistics service providers in the United States. It offers various integrated services, including transportation, distribution and supply chain management. Herc Holdings is in a very large and growing industry with several advantages that could help it sustain and increase long-term earnings growth. The company has been profitable every year since its IPO in 2004. It has a strong balance sheet, with $1.16 billion in cash and just $677 million in debt. Herc Holdings has also increased its dividend for eight consecutive years. The stock has a low P/E ratio of 10.4 and a forward P/E of 8.6, indicating that the stock could be good value and rise over the next year.

Veritiv (VRTV)

Veritiv is a leading supplier of printing and paper products. The company has been one of the most successful in the industry. It has steadily increased its revenue and profits over the past decade, showing that it is a low risk investment. The stock has also shown consistent performance, growing at an annual rate of around 10% over the past five years. The company has a strong balance sheet and generates strong cash flow, which it has returned to shareholders through a rising dividend. The company spun off from International Paper in 2018 and has since grown faster than when it was part of IP. Veritiv is a very mature industry but has grown through strategic acquisitions and cost reductions.

Inter & Cie (INTR)

Inter & Co is a major distributor of electronic components and computer hardware in the United States. The company, founded in 1952, serves a variety of customers, such as original equipment manufacturers (OEMs) and end users. The company has grown steadily over the past few years, increasing its profits in each of the past five years. The company has a strong balance sheet and generates strong cash flow, which has enabled it to increase its dividend since 2011. The company is highly profitable, with a profit margin of 36%, and generates strong cash flow, which could enable it to make additional acquisitions. The stock has a P/E ratio of just 11.2 and a low P/E/growth ratio of 0.

Ninety (NOVT)

NINETY is one of the leading providers of electronic payment services in the United States. The company, founded in 1998, offers payment processing services through a network of more than 70,000 agents. The company has grown steadily over the past few years through organic growth and acquisitions. It has a strong balance sheet, with a debt-to-equity ratio of just 0.6, and generates abundant cash flow, enabling it to pay a growing dividend. The company has been consistently profitable over the past ten years and pays a dividend of over 2.5%, which is a very attractive rate of return. The company is also growing rapidly, with revenue growing at an annualized rate of more than 20% over the past two years. As a result, the stock has a P/E ratio of just 13.2 and a low P/E/growth ratio of 0.

Conclusion

Electronic equipment stocks have the potential to generate strong returns in the years to come. Stocks like Herc Holdings, Veritiv, Inter & Co. and Ninety are in a growth industry and have performed well in recent years. Therefore, these stocks could be good investment choices in 2022.

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