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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DON'T BUY
Has been a big disappointment for him. Just too many moving parts in this space. Doesn't think their tablet stands a chance. They are a big supplier to government in the US, which are looking for places to cut back.
SELL
A tricky one. A big gap in Feb. a 10% drop. another 7%. Avoid it. Could go down another $3.
BUY
Needs to do a major reorganization. Need to get out of computers. Is a cash flow machine and you get a dividend. You get paid to wait. CSCO and MSFT are better opportunities but he would be a buyer here.
BUY ON WEAKNESS
Stock price fell off a cliff this week because of disappointing numbers. Old line technology stocks are all looking very cheap now and have loads of cash and selling at 10-12 times earnings. Company has done quite well over the last 5 years, but shareholders have not made any money. Cheap.
SELL
It’s like CISCO. Valuation is reasonable. Company is floundering in a couple of areas, and it does not have the growth potential. He would want to see them perform a little better and get the earnings growth.
DON'T BUY
Not his favourite of the tech names, but they are going to have good earning growth. They are most exposed to the revolution of PCs. iPad is taking over. You do better in CSCO or a Top Pick of his.
BUY
Value in tech is always a little scary because sometimes the product cycle is over and they’re kicking out cash and they have a low multiple because they are not growing any more. This is a little bit in that space but they still have enough critical mass in their core markets that they continue to grow. At a discount to the market multiple, has cash and is generating cash.
TOP PICK
Trades below 8X forward earnings and she thinks they can grow their earnings 10%. An overhang is that the PC market has slowed this quarter because of the tablet market. Although PC’s are 30% of its revenues, it is only 13% of its earnings. They are in services, printers and thinks they will be expanding into the router market through 3Com.
DON'T BUY
Have had some past troubles with both management and execution. Have to make some changes to really ramp up in order to compete better in the enterprise market.
BUY
Winning a lot of government contracts. We are in a seasonal slower period for technology. Good entry point.
DON'T BUY
Chart shows a big drop early in the year. It’s below the 200-day moving average and it is pointing downward. Point and Figure is not pretty. If it goes below $37, run away. Not doing as well as its peers.
TOP PICK
PC business is 25% of revenues and 13% of profits. Bigger component is services (30% or profits). Have number 1 position in printing business. Supplies for printing are higher margin. Management change depressed the price. Have consistently delivered 10% earnings growth. 8 times forward earnings is too cheap. Thinks they will get some share in the networking space through an acquisition. Recently increased dividend by 50%.
STRONG BUY
Very keen on it. Screaming buy. It’s very cheap. 9.5 P/E. Dividend increased by 50% today.
PAST TOP PICK
(A Top Pick Feb 26/10. Down 4.35%.) Stock dropped when their CEO resigned last summer. Stock is slowly working its way back up. Still likes very much. Low multiple at 9X forward earnings.
SELL
Tremendous choice in the technology area. Sees this as a bit of a value trap. Normally had traded at 10 to 12 times earnings and are now trading at about 8X. Slow grower and low single digit revenue growth. There is worry about PC growth.
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