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The computer and peripherals industry has had a poor year in 1998, but the prospects for the industry over the long term seem to be good. The economy for both the US and the emerging markets should improve over the next three to five years, and sales should improve beginning in 1999. These stocks are well ranked for 1998 and 1999 and many have price appreciation potential for the next three to five years.

The computer and computer peripherals industries, especially personal computer manufacturers, have been experiencing a difficult year in 1998, but this may improve in 1999. The growing business and personal use of computers and peripherals should also provide industry growth over the next three to five years. There are a number of timely stocks in these industries, but conservative investors need to be cautious.

The computer and computer peripherals industries had a good year in 1997, although there were exceptions such as disk drive manufacturers, and 1998 can be expected to be favorable as well. Rising disposable income, durable equipment demand and spending, and the good US economic climate should bode well for the next three to five years for these industries, also. These stocks are timely in 1998 and should outperform the market through 2002.

The US economy is expected to have an average growth rate of 2% to 3% in the late 1990s and the early years of the 21st Century after slowing in the last half of 1997. Spending on durable goods, such as computers and peripherals, is expected to reach 10% in 1997 and average 6% to 8% through the years 2000 to 2002, making these growth industries. Many stocks in these industries are forecast to outperform the market in 1997-1998 and through 2000-2002.

Predictions that the computer industry and the computer peripherals industry would have good results in 1997 and 1998 still appear to hold true despite that profit concerns triggered some heavy stock sales. With indications that these industries will continue to advance into the next century despite a few rough occasions, investors will find that the stock sales are creating excellent buying opportunities.

Investors can look forward to high and above average performances from the computer industry and computer peripherals industry stocks in 1997, as analysts predict that the good earnings and sales records of 1996 will continue for the next 3 to 5 years. Although most equities are expected to outperform market averages, conservative investors should avoid computer and computer peripherals industry stocks because of high price volatility.

Sales were good for the computer and peripherals industry in 1995, with strong demand for both personal computers and mainframes. Less demand should slow sales in 1996, however. Earnings and sales, though, will gain over the next three to five years, especially in foreign markets. Computer and peripheral stocks will outperform the market in 1996 and there is good price appreciation potential for the next three to five years.

The computer and peripherals industry is benefitting from favorable US economic growth, with 8%-9% durable goods expenditure increases expected. European and Asian economies are mixed now, however. Demand in the small business and home markets for PCs is strong, and the new markets in Eastern Europe, Asia, and elsewhere are opening. Many of these stocks are expected to outperform the market in the next three to five years.

Demand for personal computers is high, especially in the small business and home markets. Mainframe sales have also increased, and sales of disk drives and other components are high as a result. However, the personal computer market has leveled off and some potential customers are deferring purchases. International and US economic growth for the next three to five years will be good for these industries. These stocks will outperform the market through 1998-2000.

The computer and peripherals industry will have good sales and earnings through the 1990s. Computers will do well in 1995 and 1996 with a 7.5% durable business equipment expenditure forecasted. Personal computer sales will increase, due to a 3% to 3.5% disposable income growth in the next three to five years. Stocks in this industry will outperform the market in 1995 and 1996, with some showing long-term gains.