2 Outperforming Computer Hardware Stocks to Buy on the Dip Irrespective of the ongoing tech rout due to sky-high inflation and several geopolitical issues, popular computer hardware companies are expected to grow substantially in the foreseeable future. So, we think...

The tech industry is expected to remain under pressure ahead of expected interest rate hikes in March. Supply strangulation and record-high inflation amid solid demand have led to soaring prices in the computer hardware sector. Shares of leading computer hardware companies have outperformed the benchmark Nasdaq 100 index's 2.2% decline over the past year.

Amidst an extended remote life culture, the need for computer hardware has become an inherent part of the successful and smooth operation of most businesses. With rapid digitization in a complex data-driven world, robust computer hardware companies are expected to grow substantially in the coming months.

Therefore, we think it could be wise to add fundamentally strong computer hardware stocks AstroNova, Inc. (ALOT) and Socket Mobile, Inc. (SCKT) to one's portfolio now, despite their trading below their 52-week highs.

AstroNova, Inc. (ALOT)

West Warwick, R.I.-based ALOT designs, develops, manufactures, and distributes specialty printers and data acquisition and analysis systems in the United States, Europe, Asia, Canada, Central, South America, and internationally. The company has two segments: Product Identification (PI) and Test & Measurement (T&M).

On Dec. 8, 2021, Gregory A. Woods, ALOT's President and CEO, said, "Third-quarter bookings increased 16% to $32.3 million, highlighting strong demand trends heading into the final quarter of the year. Based on these trends and our expanding backlog, we believe we are well positioned for sequential and year-over-year growth in the fourth quarter of fiscal 2022."

For its third fiscal quarter, ended Oct. 30, 2021, ALOT's revenue came in at $28.86 million, up 3% year-over-year. Its non-GAAP net income was $103,000, up 758.3% year-over-year. And its non-GAAP EPS came in at $0.01.

ALOT's revenue is expected to increase 6.4% to $125.03 million in 2023. Its EPS is estimated to grow 450% to $0.99 in 2022. It also surpassed EPS estimates in three of the four trailing quarters. And over the past year, the stock has gained 25% in price. It is currently trading 24.1% below its 52-week high of $18.52, which it hit on Nov.8, 2021, to close yesterday's trading session at $14.05.

ALOT's strong fundamentals are reflected in its POWR Ratings. The stock has an overall A rating, which indicates a Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.

ALOT has an A grade for Value and Sentiment and a B grade for Momentum and Quality. In the B-Rated Technology - Hardware industry, it is ranked #1 of 49 stocks. Click here to see the additional POWR Ratings for Growth and Stability for ALOT.

Socket Mobile, Inc. (SCKT)

SCKT produces data capture products for mobile applications used in business mobility markets in the United States, Europe, Asia, and internationally. The Newark, Calif.-based concern has a network of thousands of developers.

On Oct. 21, 2021, Kevin Mills, President and CEO said, "We continue to invest in developing our Near Field Communication (NFC) products, which we believe will be key to our long-term growth and competitiveness. Our NFC products are ideal readers that can access identification information like the mobile driver licenses, which can be added to the mobile wallet in iOS 15 and be part of a secure track and trace solution in highly regulated markets or to protect brands and fight counterfeiters."

For the third quarter, ended Sept. 30, 2021, SCKT's revenue increased 53.8% year-over-year to $6.32 million. Its net income came in at $644,000 compared to a $4 million loss in the year-ago period. Also, its EPS was $0.07, compared to a $0.62 loss per share in the previous period.

SCKT's revenue is expected to increase 22.5% to $28.35 million in 2022. The company's EPS is expected to come in at $0.3 in 2022. Over the past year, the stock has gained 23.5% in price. The stock is currently trading 88.6% below its 52-week high of $35.00, which it hit on Feb.16, 2021, to close yesterday's trading session at $4.00.

SCKT has an overall B rating, which equates to a Buy in our POWR Ratings system. It has an A grade for Value and Sentiment and a B grade for Quality. It is ranked #20 in the Technology - Hardware industry. Click here to check additional ratings for SCKT (Growth, Momentum, and Stability).