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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DON'T BUY
Difficult call because of a big exposure to servers which was big growth driver and that is a going to soften. Better growth stories out there..
DON'T BUY
PC market is starting to fail in lieu of the Tablet market. Trades at a very cheap multiple but probably a Value Trap.
TOP PICK
Dominant global technology company, both hardware and software provider and trading at historically low valuation multiples of about 8X earnings. Earnings are expected to grow 15% next year. Paying out only a very small percent of earnings. If they decide to increase dividends, the stock would jump.
HOLD
Typically strong seasonality from Oct to early January. Chart shows some resistance and a trading range. The whole sector wants to go higher. If you own be prepared to take profits in early January.
BUY
Reasonably valued large caps. 12x earnings range. Would like a higher dividend yield.
WEAK BUY
He owns APPL. HP had a good run with their service strategy, replacing Dell. Good quality company, not threatened by any trends. Not going to be a big growth story.
TOP PICK
New CEO previously ran a large global technology company. Very cheap at 8.5X forward earnings.
DON'T BUY
Problems in the press – management group has suffered a scandal. Bigger issue is that PC side of business is in some jeopardy – is tablet going to replace PC. Not an expensive stock but is a value trap. There are better choices.
DON'T BUY
New CEO. Very cheap stock. Still too many problems and too much change at the company.
TOP PICK
Thinks the market has overreacted to Mark Hurd’s resignation. Very attractive multiple at 8X forward earnings. #1 position in PC's, printers and IT services. Expanding into higher margin businesses.
DON'T BUY
Terribly undisciplined in their acquisitions in the last little while. At this level, it looks like it is pricing in no growth. Wants to see more clarity.
DON'T BUY
Cheap, cheap stock but company is in disarray. Grossly overpaid for 3Par. Much better bets in in the technology area than this one.
BUY
In a bidding war for 3PAR (PAR-N). Believes they are worried that desktop computer age is going to be over in the next 5 years so want to branch out. Great company and generating $10 billion of free cash flow annually. Balance sheet is in great shape. Trading at less than 10X earnings. Not his favourite. (See Top Picks.)
TOP PICK
Has owned for a while and followed them. Stock over reacted to Mark’s departure. Cheaper than it was a year ago. Likes their business divisions. Just reported their quarter and business looks good. Don’t know who their new CEO will be. Bought more when the departure was announced.
BUY
Strong franchise and cash flowing company. Has generated strong returns on equity through the pretty challenging last few years. Trading at less than 1X sales, which is pretty cheap for a large-cap tech company.
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