NYSE:HPQ

Hewlett-Packard Co (HPQ)

25.75
+1.24 (5.06%)
as of Jul 24, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconJul 26, 2026, 12:00 am

This summary was created by AI, based on 3 opinions in the last 12 months.

Hewlett-Packard Co (HPQ) is currently perceived as deeply undervalued; however, there are growing concerns about it potentially being a value trap due to limited growth prospects and rising leverage. Experts note that the company is grappling with margin pressure caused by increasing input costs such as memory, which could impact profitability. Despite these challenges, HP has a robust dividend policy with a payout ratio of only 33%, making the yield appealing at 6.21%. The iconic brand commands a significant market share, and although the business may not experience explosive growth, there are opportunities for margin enhancement that could provide financial upside. Analysts have set a price target of $24.55 for the stock, highlighting potential upside alongside caution regarding market dynamics.

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Consensus
Cautious
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Valuation
Undervalued
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BUY
Looks really attractive at these levels. Have done a really good job in the last 6 months diversifying away from printers and getting into servers and other service applications. Trying to become the next IBM. Trades at a 2% discount to IBM.
DON'T BUY
Technically, the stock consolidated nicely between November and February but has broken down out of the consolidation. Earnings were a little bit disappointing. The macro environment has overwhelmed the situation. Likes the technology space and likes this company but in the near term, the stock is going to probably be weak.
DON'T BUY
Essentially a PC manufacturer. Has hung in pretty well and is picking up market share. PC is a competitive market and he doesn't think PCs will do very well.
DON'T BUY
Not a big fan of laptop or computer manufacturing stocks. Tough business, small margins.
DON'T BUY
Sold his holdings when it dropped through $50. Technically, the stock is broken right now. Well managed business and they are building their services business. Not the right time to Buy.
BUY
(Market Call Minute.) Major acquisition makes it look more like IBM recurring revenue from service and software makes it more attractive and less volatile.
HOLD
Has done exceptionally well. Have been cost-cutting. Now getting into the arena of consulting by acquiring Electronic Data Systems (EDS-N). When companies go through things like this, you have to be careful and patient for integration risks.
DON'T BUY
Acquiring Electronic Data Systems (EDS-N) but not sure it's a great deal for them. Services business is a lower margin business than the PC business.
COMMENT
Planning to buy Electronic Data Systems to better compete against IBM. This will be the same type of story as IBM in that you won't make a lot of money but the dividend will keep going up.
HOLD
Thinks he eventually they will be able to break through the $50 mark. Absolute performance has been very strong. Product and efficiencies have been very good over the last couple of quarters.
COMMENT
Have done a very good job. Have done very well with on the PC side and their printers continue to do well.
TRADE
He doesn't like tech usually. But HP has been a great turn-around story. They've been very draconian about costs and expenditures. Strategically you might have to wait a bit though.
BUY
Very well positioned. Success came when they refocused on their consumer computer business and started taking market share away from Dell (DELL-Q).
PAST TOP PICK
(A Top Pick Aug 23/06. Up 40%.) The computer group in 2003/2004 had really under performed the market but this one was going against the group.
DON'T BUY
2% positive differential Not enough difference to buy.
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