Stock of the Day

HP (HPQ)

$25.04

+$0.34 (+1.4%)

Market Cap: $23.45B

About HP

HP Inc. provides products, technologies, software, solutions, and services to individual consumers, small- and medium-sized businesses, and large enterprises, including customers in the government, health, and education sectors worldwide.

It operates through Personal Systems and Printing segments. The Personal Systems segment offers commercial personal computers (PCs), consumer PCs, workstations, thin clients, commercial tablets and mobility devices, retail point-of-sale systems, displays and other related accessories, software, support, and services for the commercial and consumer markets. The Printing segment provides consumer and commercial printer hardware, supplies, media, solutions, and services, as well as scanning devices; and laserJet and enterprise, inkjet and printing, graphics, and 3D printing solutions. The company was formerly known as Hewlett-Packard Company and changed its name to HP Inc. in October 2015. HP Inc. was founded in 1939 and is headquartered in Palo Alto, California.

HP Bull Case

Here are some ways that investors could benefit from investing in HP Inc.:

• The current stock price is around $24.91, which may present a buying opportunity for investors looking for value.
• HP Inc. has recently declared a quarterly dividend of $0.2894 per share, translating to an annualized yield of 4.65%, which can provide a steady income stream for investors.
• The company reported a revenue increase of 3.3% year-over-year, indicating growth potential and resilience in its business operations.
• HP Inc. has a market capitalization of approximately $23.48 billion, suggesting it is a well-established player in the market, which can provide stability for investors.
• Institutional investors and hedge funds own 77.53% of the company's stock, reflecting strong confidence from large investors in HP Inc.'s future prospects.

HP Bear Case

Investors should be bearish about investing in HP Inc. for these reasons:

• The company reported a negative return on equity of 253.39%, which may raise concerns about its profitability and efficiency in generating returns for shareholders.
• HP Inc. missed analysts' consensus estimates for earnings per share, reporting $0.71 compared to the expected $0.80, indicating potential challenges in meeting growth expectations.
• The stock has a relatively low price-to-earnings (P/E) ratio of 8.86, which could suggest that the market has lower growth expectations for the company compared to its peers.
• Insider ownership is only 0.38%, which may indicate a lack of confidence from company executives in the stock's future performance.
• The stock has experienced significant fluctuations, with a 1-year high of $39.80 and a low of $21.21, suggesting volatility that could deter risk-averse investors.

Recent News

• HP Q2 Earnings Transcript (marketbeat.com)
• HP Inc. (HPQ) Presents at Bank of America Global Technology Conference Transcript (seekingalpha.com)
• Why HP Stock Sagged by 11% This Week (fool.com)