Retail checks from Black Friday give Goldman Sachs’ (NYSE:GS) David Bailey more reason to recommend buy-rated names like Apple Inc. (NASDAQ:AAPL), Hewlett-Packard Co. (NYSE:HPQ) and Seagate Technology (NASDAQ:STX) as they look set to have strong consumer quarters to end the year. The analyst also likes what he has seen from neutral-rated Western Digital Corp. (NYSE:WDC)
In a note he told clients that,
We would continue to buy Apple shares heading into MacWorld and its earnings announcement in mid-January as Apple’s three major product cycles – Mac, iPod, and iPhone – fuel upside. Apple will have multiple winners once again this holiday season, with Macs a particular standout.
As for HP, Mr. Bailey recommends the stock given the company’s balanced strength and ability to drive outsized earnings growth. It has strong defensive characteristics that will prove useful in a weaker macro and market environment, he said, adding that HP is the main beneficiary of rising demand for notebook computers.
Finally, the analyst continues to think higher demand, prices and product mix will drive both the Street’s estimates for Seagate and its stock higher.
“Hard drives are the ‘hot’ PC accessory this holiday season, and Seagate and Western Digital dominate the category,” he said.
AAPL vs. HPQ vs. STX 1-year chart: