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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TOP PICK
A lot of the bad news is already in the stock. In his calculation the stock is worth $35-$40. Have a fairly bloated cost structure which they could trim. Numbers come out on May 23rd. Look for revenue stabilization and cash generation.
BUY
A restructuring story; a good value story and a nice dividend, which they can pay easily. Printer business is a very good business. You get the rest of HP for free of you put a good multiple on the printer business. Will not go up a lot here but as the restructuring tapes place it will increase in price.
PAST TOP PICK
(Top Pick Mar 29/11, Down 42.68%) She is upset about the management there. Stock is incredibly cheap. Thinks they will deliver on forecasts.
BUY
Cheap! In a historical perspective it has traded back to its book value twice before and is there again. Expected to earn about 4 times book value.
BUY
Not enamored. It was a company in disarray and didn’t know what to do with PC business. Printer business is fantastic for them. It is worth more than the company. It may take a couple of years to sort itself out completely. They have a good servicing business. At these levels it is a good thing to buy.
PAST TOP PICK
(Top Pick Mar 28, 2011, Down 39.04) You have to give it more time. It is too cheap to sell right here.
SELL
Would switch into something else. They have been challenged for some time. There are better opportunities in other technology companies that are doing it right. Apple, Google, Oracle.
COMMENT
Has lots of cash. Had a change of management which means you may have a team that is now focused on returning value to shareholders. They may spin of their printing operation, use some of the cash to buy back shares, issue a special dividend, etc. A lot of the cash is overseas and if they bring it back into the US, they have to pay the top marginal corporate tax rates. There may be other large cap tech stocks that are better to look at such as Microsoft (MSFT-Q) or Intel (INTC-Q).
PAST TOP PICK
(A Top Pick Dec 14/10. Down 32.79%.) Sold his holdings.
PAST TOP PICK
(Top Pick Oct 25/10, Down 38.89%) The board has to decide what they want to do. New CEO did run Ebay but it is not a hardware company. Investor sentiment is very negative. She thinks it is over done and so continues to hold it. Have re-occurring revenue stream for their printer and service business. They just have to demonstrate they have a clear strategy in place and then execute on it.
DON'T BUY
Thinks that it is a value trap for a little while. Trades at 5X next year's earnings. Yield of almost 2%. The issues are not only with the board and the management changes, but there are some macro, some secular real internal business things that are very difficult.
DON'T BUY
As been in a trading range over the last 5 years with the exception of this most recent selloff where it has broken down through the bottom of the 2008-2009 low. Just fired its new CEO. Marvellous example of a dysfunctional company.
DON'T BUY
Major change in upper management and management in a company is very important. If there has been a lot of management change, he would tend to stay away.
PAST TOP PICK
(A Top Pick Sept 27/10. Down 44.26%.) Consumer demand for PCs has been very weak. Have decided to re-examine the PC business. Wants to give it more time to see what happens.
SELL
Have changed direction dramatically. Recent acquisition will be dilutive.
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