ValuEngine Rates Hewlett Packard A STRONG BUY

For today’s bulletin, we take a look at Hewlett Packard Inc. $HPQ. We also provide a link to download a FREE STOCK REPORT on the company

VALUATION: Overvalued stocks now make up 53.03% of our stocks assigned a valuation and 19.46% of those equities are calculated to be overvalued by 20% or more. Thirteen sectors are calculated to be overvalued.

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HP Inc. (HPQ) is the surviving entity following the November 2015 split of Hewlett-Packard Company into publicly traded entities – Hewlett Packard Enterprise Company and HP Inc. The company’s focus will be on the PC and printing products and services. HP Inc. is headquartered in Palo Alto, California.

Keep in mind that today we are discussing HP Inc, this is the company most people think of when they think “Hewlett Packard” because this is the entity that is responsible for PCs, printers, and other similar items. The “other” HP is Hewlett Packard Enterprise (HPE). Hewlett Packard Enterprise handles data centers, software, and IT services for corporate clients.

The company split up after the disaster that was the reign of former CEO–and recent US presidential candidate– Carly Fiorina. Fiorina wrecked one of the premiere tech pioneers of Silicon Valley in little more than five years. She was responsible for a variety of disastrous decisions including purchasing COMPAQ, firing @30,000 workers, and other missteps. It took a full on revolt from the founders’ heirs to finally remove her.

Of course, as is too often the case in modern-day America, for her “success” Fiorina was rewarded with a $20 million golden parachute package. Now, the company is on the mend–indeed, once Fiorina was fired the stock popped 10% in response.

When the companies were split up, most analysts expected HP Inc. to fade. Perhaps not immediately, but surely a focus on PCs and printers, items which are more like a commodity than a high-value item (unless you are Apple), would not be very “sexy” and would have more mundane profits.

HP Enterprise, on the other hand, was supposed to be the “golden child.” It’s focus on high-value items like data centers and services would boost their bottom line. So, this was the portion of HP that attracted all the “smart” money and analysis.

But, over the past year we have seen a reversal here. HP Inc. is the company with the good results and the attention. HP Enterprise is having a hard time in the cloud, and sales goal and projections and not being met. Meanwhile, HP Inc. has posted good numbers and has been rewarded by analysts and investors. Their efforts to expand their 3D printing business show promise–and profits–and changes to how they handle ink supplies for more standard printers have also paid off. They have also focused on more powerful–and profitable–computers for higher-end business clients and thus also boosted their bottom line.

ValuEngine continues its STRONG BUY recommendation on HP Inc. for 2017-09-11. Based on the information we have gathered and our resulting research, we feel that HP Inc. has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Company Size and P/E Ratio.

You can download a free copy of detailed report on HP Inc.(HPQ) from the link below.

 

ValuEngine Forecast
Target
Price*
Expected
Return
1-Month 19.56 1.23%
3-Month 19.78 2.37%
6-Month 20.43 5.74%
1-Year 22.18 14.82%
2-Year 24.53 26.97%
3-Year 25.88 33.96%
Valuation & Rankings
Valuation 19.51% overvalued Valuation Rank(?) 20
1-M Forecast Return 1.23% 1-M Forecast Return Rank 100
12-M Return 33.33% Momentum Rank(?) 81
Sharpe Ratio 0.05 Sharpe Ratio Rank(?) 52
5-Y Avg Annual Return 2.45% 5-Y Avg Annual Rtn Rank 54
Volatility 46.85% Volatility Rank(?) 35
Expected EPS Growth 7.52% EPS Growth Rank(?) 34
Market Cap (billions) 35.31 Size Rank 96
Trailing P/E Ratio 12.10 Trailing P/E Rank(?) 87
Forward P/E Ratio 11.25 Forward P/E Ratio Rank 78
PEG Ratio 1.61 PEG Ratio Rank 29
Price/Sales 0.70 Price/Sales Rank(?) 78
Market/Book n/a Market/Book Rank(?) n/a
Beta 2.12 Beta Rank 11
Alpha 0.01 Alpha Rank 60

 

DOWNLOAD A FREE SAMPLE OF OUR HEWLETT PACKARD (HPQ) REPORT BY CLICKING HERE

 

ValuEngine.com is an Independent Research Provider (IRP), producing buy/hold/sell recommendations, target price, and valuations on over 5,000 US and Canadian equities every trading day.
Contact ValuEngine at (800) 381-5576 or support@valuengine.com  
Visit www.ValuEngine.com for more information

 

ValuEngine Capital Management LLC is a Registered Investment Advisory (RIA) firm that trades client accounts using ValuEngine’s award-winning stock research.
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