NYSE:HPQ

Hewlett-Packard Co (HPQ)

32.64
+0.71 (2.22%)
as of Sep 4, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconSep 5, 2026, 12:00 am

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

Hewlett-Packard Co (HPQ) is perceived as potentially undervalued, with a forward P/E ratio under 7x, indicating a low market price relative to its earnings potential. However, experts caution that it could be turning into a value trap due to stagnant growth prospects and higher leverage than desirable. There are concerns over rising input costs, particularly in memory, putting pressure on margins. Although the dividend remains well-covered with a low payout ratio of 33% and analysts target a price of $24.55, the combination of weak growth and negative share price momentum makes investors cautious. The company's strategy of buybacks over the past decade adds potential for enhancing earnings per share, but the overall outlook is tempered by external economic pressures.

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Consensus
Cautious
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Valuation
Undervalued
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HOLD
There are other areas of technology that he would prefer, but if you own it, Hold.
HOLD
Was a great value play in the $20 area. Good company and very diversified. Expect you will make a 9%-10% return.
BUY
After years of under performing, started hitting on a number of cylinders after it restructured. Have beaten estimates 8 quarters in a row. Have been cutting costs and growing their market share.
DON'T BUY
Sold it in the mid to high $30’s. A strong business. Sort of regained #1 market share. May be at the top of its cycle. Fully valued.
PAST TOP PICK
(A Top Pick Sept 22/05. Up 98.2%.) Very focused. Continuing to buy.
BUY
Becoming a much better run company. Their operations are better.
DON'T BUY
His concern is that their top line is growing very slowly. Mid single digits at best the last few quarters, year after year. Managed to beat estimates on the earnings side so obviously is controlling costs. Are you cutting into your future when you do that?
TOP PICK
(A Top Pick Sept 22/05. Up 24.8%.) A story of cost-cutting, margins and revenue growth. Cost cutting is working so margins are increasing and they are competing very effectively on price. They are also seeing growth across their business units. When a big company like this starts to turn around, it can turn around for a long time.
BUY
They had a fantastic quarter. Relatively inexpensive. Have a lot of cash and continue to grow.
PAST TOP PICK
(A Top Pick Apr 10/06. Down 2.5%.) Has held in remarkably well against a very tough technology market. It’s in the midst of a turnaround. There is not only cost cutting, but good prospects of revenue growth.
PAST TOP PICK
(A Top Pick Apr 10/06. Down 10%.) Still likes. Has hung in remarkably well compared to any of the technology stocks. In the middle of a very strong turnaround in their business. Could see a good pickup in revenues.
TOP PICK
Was a chronic underperformer for a number of years. Some of the restructuring efforts have really started to take hold. Had two quarters in a row were they have beaten the estimates. Feels we are into a 2/3 years cycle.
TOP PICK
Some management changes. Profits are rising. Low risk. Has owned the past few months.
BUY
A turnaround situation. New CEO has been rebuilding the divisions and making them work together better.
BUY
Will be reporting earnings a month from now and should have an uptick in all of their business lines. New CEO is doing a very good job. Have beaten the estimates a couple of times in a row now.
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