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HP Inc. (HPQ - Free Report) was a big mover last session, as its share price increased nearly 3%.
If you haven’t yet taken advantage of the share price appreciation, its time you hold onto the stock as it looks promising and is poised to maintain the momentum. This Zacks Rank #3 (Hold) company has an estimated long-term earnings growth rate of 2.9% and a market capitalization of $29.21 billion.
HP is one of the two companies which came into existence post its split from the parent company, Hewlett-Packard Company, in Nov 2015. We are impressed as the stock has been clocking solid returns over the past one month and has gained approximately 0.6%, outperforming the Zacks categorized Computer-Mini industry’s decline of 1.1%.
The other company which came into existence after the split is Hewlett Packard Enterprise Company (HPE - Free Report) .
Notably, HP reported stellar second-quarter fiscal 2017 results which were mainly driven by strength in Personal System and Printing segments.
HP’s efforts to turn around the business are commendable. The company is focusing on product innovation, differentiation and enhancing the capabilities of its printing business to stabilize the top line.
We believe that HP’s massive restructuring moves will complement its focus on core businesses and enable it to expand its share in the PC and Printing market. Per the latest reports of two independent research firms, Gartner Inc. and International Data Corporation, the downtrend in PC shipments became modest in first-quarter 2017 compared with the previous quarters. Therefore, we believe that the improving trend in PC shipments will benefit the business prospects of companies like HP Inc.
With the start of shipping A3 multifunction printers to more than 80 countries, covering all its key markets, HP can revive its printing business and grab a bigger share in the inkjet printer market. Also, the acquisition of Samsung’s printing business will support the development and manufacturing of printers.
Upward Revisions
Earnings estimates for HP have exhibited a healthy uptrend. Over the last 60 days, the 2017 Zacks Consensus Estimate of earnings has moved up 1 cent to $1.63 per share on the back of 6 out of 8 upward revisions. The Zacks Consensus Estimate for 2018 has also jumped 3 cents over the last 60 days to $1.71 per share.
Positive Earnings Surprise History
HP outpaced the Zacks Consensus Estimate in all the last four quarters, generating an encouraging positive average earnings surprise of 2.98%.
Valuation & Style Score
On a price-to-sales basis, shares are trading at 0.6x, which is less than the industry’s average of 2.3x. Currently, HP trades at a forward P/E of 10.9x, which again compares favorably with the industry’s average of 14.2x.
Additionally, the stock has an attractive VGM Score of ‘A’. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three factors. Taking into account the above-mentioned tailwinds and the favorable readings, we believe that the current price represents an attractive entry point for investors.
Broadcom and Applied Materials expect long-term earnings per share growth rate of 13.6% and 16.6%, respectively.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
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HP's (HPQ) Performance Attracts Investors, Stock Rises 3%
HP Inc. (HPQ - Free Report) was a big mover last session, as its share price increased nearly 3%.
If you haven’t yet taken advantage of the share price appreciation, its time you hold onto the stock as it looks promising and is poised to maintain the momentum. This Zacks Rank #3 (Hold) company has an estimated long-term earnings growth rate of 2.9% and a market capitalization of $29.21 billion.
HP is one of the two companies which came into existence post its split from the parent company, Hewlett-Packard Company, in Nov 2015. We are impressed as the stock has been clocking solid returns over the past one month and has gained approximately 0.6%, outperforming the Zacks categorized Computer-Mini industry’s decline of 1.1%.
The other company which came into existence after the split is Hewlett Packard Enterprise Company (HPE - Free Report) .
Notably, HP reported stellar second-quarter fiscal 2017 results which were mainly driven by strength in Personal System and Printing segments.
HP’s efforts to turn around the business are commendable. The company is focusing on product innovation, differentiation and enhancing the capabilities of its printing business to stabilize the top line.
We believe that HP’s massive restructuring moves will complement its focus on core businesses and enable it to expand its share in the PC and Printing market. Per the latest reports of two independent research firms, Gartner Inc. and International Data Corporation, the downtrend in PC shipments became modest in first-quarter 2017 compared with the previous quarters. Therefore, we believe that the improving trend in PC shipments will benefit the business prospects of companies like HP Inc.
With the start of shipping A3 multifunction printers to more than 80 countries, covering all its key markets, HP can revive its printing business and grab a bigger share in the inkjet printer market. Also, the acquisition of Samsung’s printing business will support the development and manufacturing of printers.
Upward Revisions
Earnings estimates for HP have exhibited a healthy uptrend. Over the last 60 days, the 2017 Zacks Consensus Estimate of earnings has moved up 1 cent to $1.63 per share on the back of 6 out of 8 upward revisions. The Zacks Consensus Estimate for 2018 has also jumped 3 cents over the last 60 days to $1.71 per share.
Positive Earnings Surprise History
HP outpaced the Zacks Consensus Estimate in all the last four quarters, generating an encouraging positive average earnings surprise of 2.98%.
Valuation & Style Score
On a price-to-sales basis, shares are trading at 0.6x, which is less than the industry’s average of 2.3x. Currently, HP trades at a forward P/E of 10.9x, which again compares favorably with the industry’s average of 14.2x.
Additionally, the stock has an attractive VGM Score of ‘A’. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three factors. Taking into account the above-mentioned tailwinds and the favorable readings, we believe that the current price represents an attractive entry point for investors.
Stocks to Consider
Some better-ranked stocks in the broader technology sector are Broadcom Ltd. (AVGO - Free Report) and Applied Materials, Inc. (AMAT - Free Report) . Broadcom and Applied Materials, sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Broadcom and Applied Materials expect long-term earnings per share growth rate of 13.6% and 16.6%, respectively.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>