NYSE:HPQ

Hewlett-Packard Co (HPQ)

25.75
+1.24 (5.06%)
as of Jul 24, 2026, 8:00:00 pm Market Open.
60 watching
0
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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PAST TOP PICK
(A Top Pick Aug 25/05. Up 2%.) Have gone through some management changes. Looks like a good company that will become a great company. Continuing to buy.
COMMENT
Dell (DELL-Q) versus HP (HPQ-N)? A tough question. Would stick with Dell, because of its history. New management. Has a proven growth strategy over a longer term basis.
TOP PICK
Going through a real rebirth. Analysts are upgrading their earnings estimates. Typically, once an improvement starts to kick in, analysts are generally behind the curve being scepitcal. The 1st analyst increase will not be the lasat one.
SELL
Model price has risen from $28 a year ago to $30.50 now. Sold his holdings because there was value elsewhere. Would sell here.
TOP PICK
Have been going through restructuring. One of those really big businesses that if they get their restructure to start to catch, you could see significant leverage in the earnings. The technology sector underperformed all through the early part of the year, this one was extremely stable. Really beat the estimates on their earnings.
WAIT
In transition. Changes make a lot of sense as they have to get their costs down. Not adding to their holdings as they want to see if this really will work.
TOP PICK
New CEO. Restructuring. Expecting some cost savings to be created.
DON'T BUY
Generally an OK business, but not compelling. They've lost out to DEll (DELL-Q). Thinks they will carve out a niche in the market somewhere between the DEll and IBM (IBM-N) models. Will be a little while before they get their profitability models sorted out.
DON'T BUY
He has a SHORT on this stock. This is based on a long term trend. Getting cheapcompetition on their print cartridges from China. Also getting competition from Dell (DELL-Q) on their printers. Market share is dropping and will continue to do so.
SHORT
This company will suffer over the next 5 years. Now getting competition from Dell (DELL-Q) who are selling printers now. Also getting competition on ink jet cartridges. Expeccts earnings will drop in the years to come.
WATCH
Looking at sectors, NASDAQ & technology have been the weakest part of the market. These shares have been trading sideways which is a net positive, but is facing some issues such as only modest demand for PC's, business/server side doing OK, but a lot of competition in printers. Would like to see it trading $23/24 higher indicating that it is coming out of the consolidation.
BUY
Prefers over Dell (DELL-Q).
DON'T BUY
3 major business are PC's, printers and IT consulting. Dell is hurting their PC sales as well as giving them some pressure on their printers.
DON'T BUY
An OK company. Management is relatively good. At this point in the cycle, he's a little bit leery of the technology sector. Would look elsewhere.
HOLD
Has done a very good job in amalgamating Compaq and creating greater profitability. Focused in the PC area which is not having the growth needed. The technology sector is weak. If it traded below $19.50 be defensive.
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