An improving economy typically leads to outperformance in hardware stocks. That is especially true this year as IT spending is forecasted to soar. This trend should help drive Dell Technologies (NYSE:) to new heights.As the economy improves, many companies are feeling more comfortable increasing their spending. Hardware stocks, especially, have seen their shares soar since November in anticipation of increased IT spending. But the best is still yet to come.
Hardware stocks typically outperform the market in economic recoveries. Still, due to lower than usual spending last year, in 2021 hardware stocks are forecasted to skyrocket as survey after survey of IT leaders indicate a massive increase in spending.
In particular, one stock has seen its price targets shoot up over the past couple of days due to this trend. Dell Technologies Inc. (DELL), due to its PC solutions and hybrid-cloud offerings, is expected to see massive share gains this year. But before I get into evaluating the company, let’s recap the week.
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