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Hewlett-packard

Hewlett Packard Stock Remains Bearish After Earnings ReleaseYesterday, the tech giant released its quarterly earnings, showing that sales remained steady at $7.85 billion versus the expected $7.82 billion , while earnings per share came in at $0.49 , aligning with market expectations. However, what is currently weighing on the stock is the company's announcement of a new essential plan to lay off approximately 2,500 employees over the next 18 months. This event has created a low-growth outlook for the stock, which could sustain downward pressure in the short term. New Bearish Channel: Since the last days of January 2024, a significant bearish channel has been forming, which has now become more defined following the earnings report. The stock has started marking levels below $18 , reinforcing the downward trend. If the price continues to maintain a consistent bearish bias, the channel could extend further in the upcoming trading sessions. Possible Oversold Condition: The RSI line has consistently oscillated below the 30 level , indicating a clear oversold zone in the market. This may suggest an imbalance between buying and selling pressure in the short term. At the same time, the MACD histogram has begun showing bearish values that have not been seen since early February, demonstrating a steady acceleration of the price decline as selling pressure gains control. Additionally, the price has crossed below the lower Bollinger Band in recent oscillations, suggesting a potential exhaustion of the downward movement. All technical indicators signal a potential overselling scenario due to the rapid price drop. That said, this could lead to short-term buying corrections. Key Levels: $21.41: A key resistance zone aligning with the 100-period simple moving average. If the price moves above this level, it could pose a threat to the current bearish channel, potentially reviving buying momentum. $19.45: A nearby resistance level, aligning with October 2024 lows. This could be a tentative zone where potential bullish corrections might occur in the short term. $16.89 : A critical support level, marking the lowest levels of 2024. This could be the final barrier for the current bearish channel. If the price breaks below this level, it could reinforce the long-term bearish trend. By Julian Pineda, CFA – Market Analyst
NYSE:HPE
by FOREXcom
HPE Hewlett Packard Enterprise Company Options Ahead of EarningsIf you haven`t bought HPE before the previous earnings: Noe analyzing the options chain and the chart patterns of HPE Hewlett Packard Enterprise Company prior to the earnings report this week, I would consider purchasing the 20usd strike price Calls with an expiration date of 2025-3-21, for a premium of approximately $0.52. If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
NYSE:HPELong
by TopgOptions
Is This $1B Tech Deal the Dawn of a New AI Infrastructure Era?In a move that redefines the landscape of enterprise AI infrastructure, Hewlett Packard Enterprise has emerged victorious in securing a transformative $1 billion deal with X, Elon Musk's social media platform. This landmark agreement represents one of the largest AI server contracts to date and signals a pivotal shift in how major tech companies approach their AI computing needs. The implications of this deal extend far beyond its monetary value. By outmaneuvering industry titans Dell Technologies and Super Micro Computer in a competitive bidding process, HPE has demonstrated that traditional leaders no longer dominate the AI hardware market. This disruption suggests a new era where technological innovation and cooling efficiency may prove more crucial than established market positions. The timing of this partnership is particularly significant as it coincides with a dramatic surge in data center infrastructure spending, which reached $282 billion in 2024. HPE's success in securing this contract, despite being considered a relative newcomer in the AI server space, challenges conventional wisdom and opens up intriguing possibilities for future market dynamics. As enterprises worldwide grapple with their AI infrastructure needs, this deal may serve as a blueprint for the next wave of major tech investments, marking the beginning of a new chapter in the evolution of AI computing infrastructure.
NYSE:HPELong
by UDIS_View
Riding the Bullish Wave: HPQ Eyes $41.53 Long Term TargetHP Inc. (NYSE: HPQ) is showing promising signals for a short-term upside, despite recent volatility in the tech sector. According to recent reports, the stock outperformed its competitors on a strong trading day, yet faces ongoing risks to a PC market rebound, as highlighted by warnings from Citigroup. However, our Quantum Probability indicator, W.ARITAs, coupled with technical patterns, points to a solid trading opportunity. Technical Outlook: Bullish Patterns Indicate Upside Our analysis has identified two powerful overlapping bullish patterns in HPQ stock: the Bullish Harmonic Pattern - BAT and the Bullish Flag, both signaling potential upward movement. The stock has faced considerable pressure around the critical zone of $36.08, where we saw three retests, each validating the support level. Following these retests, we have now confirmed a breakout above this critical zone. The ideal entry price for investors looking to capitalize on this momentum is $36.09 . We are placing a stop loss at $34.18, protecting against potential downside, while the take-profit target is set at $41.53 , based on key resistance levels. This offers a strong risk-reward ratio of 2.89, making it a compelling short-term trade. Conclusion: High Potential Short-Term Opportunity While HPQ has faced challenges in the broader tech market, including concerns about the PC market rebound, the stock’s technical setup presents a positive outlook for short-term gains. Investors seeking to enter at $37.09 with a stop loss of $34.18 and target price of $41.53 stand to benefit from a bullish breakout and a favorable risk-reward scenario. Disclaimer: This analysis is based on technical indicators and market observations. It is not financial advice. Investors should conduct their own research and consult with a financial advisor before making any investment decisions.
NYSE:HPQLong
by insidermike
Hewlett Packard Enterprise (HPE) Stock Soars on AI Growth Shares of Hewlett Packard Enterprise (NYSE: VIE:HPE ) surged by 5.75% during Tuesday’s trading session following an upgrade from Bank of America. The tech giant’s stock received a boost as analysts cited numerous catalysts ahead, including AI-driven growth, cost-cutting measures, and revenue synergies from recent acquisitions. Bank of America upgraded the stock from "neutral" to "buy" and increased its price target from $21 to $24, signaling growing optimism about HPE's future prospects. Upgrade from Bank of America Bank of America’s upgrade is rooted in HPE’s positioning within the artificial intelligence (AI) sector. The bank emphasized HPE’s decades of expertise in liquid cooling systems, particularly through its CRAY supercomputing business, as a significant advantage in the AI market. As organizations and governments increasingly adopt AI technologies, HPE is expected to command a key position in providing infrastructure to support this shift. Furthermore, HPE's recent $14 billion acquisition of Juniper Networks (JNPR) is anticipated to enhance its networking solutions, boosting revenue growth and improving cost synergies. Analysts see this acquisition as a pivotal move to strengthen HPE’s competitive edge in networking, storage, and server solutions. Another key catalyst is the anticipated cost cuts under the leadership of newly appointed CFO Marie Myers. Bank of America expects HPE to implement significant cost-saving measures, which should drive profit margin recovery across its high-performance computing segment. With the cyclical recovery in the broader IT hardware market, particularly in servers, storage, and networking, HPE is poised for margin improvement and overall profitability growth. AI Adoption and Future Growth HPE’s growth prospects are also tied to its leadership in AI-related infrastructure. With the demand for AI applications skyrocketing, the company’s expertise in liquid cooling systems, developed through its CRAY supercomputing division, positions it as a critical player in the AI space. Large organizations and governments are increasingly turning to HPE for the supercomputing power necessary to run complex AI algorithms, a trend that is likely to accelerate in the coming years. Additionally, as AI becomes more embedded in industries such as healthcare, finance, and defense, the need for scalable and efficient computing infrastructure will only grow. HPE’s focus on AI not only strengthens its existing business model but also opens up new revenue streams that could fuel long-term growth. Technical Outlook From a technical perspective, HPE's stock has shown signs of reversing its recent downward trend. On Tuesday, the stock surged 5.75%, marking a notable recovery from an assumed falling trend channel. With the RSI (Relative Strength Index) at 51.21, the stock is neither overbought nor oversold, signaling that there is room for further bullish momentum. Investors are also closely watching the upcoming speech by Federal Reserve Chairman Jerome Powell, as any indication of interest rate cuts could further propel HPE’s stock price. Lower borrowing costs typically benefit tech companies, as they rely heavily on capital investments for growth. A rate cut could provide a favorable macroeconomic backdrop for VIE:HPE , further supporting the stock’s recovery. Valuation and Market Sentiment Despite its recent rally, HPE has only gained 1.5% year-to-date, lagging behind some of its tech sector peers. However, the stock’s current price of $18.09 is still well below Bank of America’s revised price target of $24, suggesting there is considerable upside potential. With AI adoption, strategic acquisitions, and cost-cutting initiatives serving as key drivers, HPE appears undervalued relative to its growth prospects. As the company continues to expand its footprint in AI infrastructure and high-performance computing, investors may begin to reprice the stock, recognizing its role as a critical enabler of next-generation technologies. Conclusion Hewlett Packard Enterprise is positioned for a strong rebound, fueled by its leadership in AI infrastructure, strategic acquisitions, and cost-cutting efforts. The recent upgrade by Bank of America underscores the company’s potential to capitalize on these growth catalysts, with a price target that suggests significant upside. With a solid technical setup and improving fundamentals, HPE is an attractive stock for investors looking to gain exposure to the rapidly growing AI and supercomputing markets. While risks remain—particularly around macroeconomic factors such as interest rate decisions—the long-term outlook for HPE is increasingly bullish. Investors should keep a close watch on how the company executes its AI-driven strategy and manages cost reductions under its new CFO, as these will be pivotal in driving future stock performance.
NYSE:HPELong
by DEXWireNews
Hewlett Packard Enterprise (NYSE: HPE) Reports Q3 Earnings Hewlett Packard Enterprise (NYSE: NYSE:HPE ) recently reported its fiscal third-quarter earnings, showcasing a mixed bag of results driven by strong AI demand but tempered by other segment weaknesses. Despite beating revenue expectations, HPE's stock saw a dip in extended trading, reflecting a complex balance between growth potential and market skepticism. Fundamental Analysis 1. Strong Revenue Growth Driven by AI: NYSE:HPE reported a 10% year-over-year revenue increase to $7.7 billion, exceeding analysts’ expectations of $7.67 billion. A standout performer was the server segment, which surged 35% year-over-year to $4.3 billion, fueled by heightened investments in AI infrastructure. This growth underscores the growing importance of AI across industries, as enterprises ramp up spending on servers capable of handling complex tasks driven by AI and machine learning. 2. Adjusted Earnings Beat, But Diluted EPS Misses: While HPE’s adjusted earnings per share (EPS) of 50 cents surpassed estimates of 47 cents, the diluted EPS came in at 38 cents, missing forecasts compiled by Visible Alpha. The discrepancy highlights ongoing challenges in HPE’s operating structure, despite robust topline growth in key areas like AI servers. 3. Segment Performance – Mixed Signals: - Intelligent Edge and Cloud Segments: Both segments posted declines in year-over-year revenue, reflecting softness in traditional cloud services amid growing competition. However, HPE's financial services segment saw a modest 1% increase, adding some stability. - Raised Annual EPS Guidance: HPE adjusted its full-year EPS outlook upwards to $1.92 - $1.97, compared to the previous forecast of $1.85 - $1.95, demonstrating confidence in its earnings capacity despite headwinds. However, the unchanged revenue forecast of 1% to 3% indicates management's cautious approach amid economic uncertainties and competitive pressures. Technical Analysis Stock Price Reaction: Despite posting solid revenue growth, NYSE:HPE shares fell nearly 3% in extended trading, followed by a 2.29% drop in the pre-market session. This decline can be attributed to weaker performance in certain segments and an overall tepid market response to AI-linked stocks. Investors were also likely disheartened by the unchanged full-year revenue outlook, as market expectations for AI-focused companies remain elevated. Key Moving Averages: Technically, HPE is trading above its 50, 100, and 200-day moving averages, a positive indicator suggesting overall upward momentum in the stock's price action despite recent volatility. These moving averages are often used by traders to gauge the overall trend, and their alignment above current prices typically points to continued bullish sentiment. Support and Resistance Levels: The current support level is observed around $17.80, where the stock has found buying interest in the past. On the upside, resistance is seen near $19.50, a level that aligns with previous highs and could present a challenge in the short term given the mixed earnings outlook. Outlook and Conclusion HPE’s Q3 performance showcases the dual forces at play within the company. The strong surge in AI-driven server sales paints a promising picture for the future, particularly as businesses continue to invest heavily in AI technologies. However, the challenges in cloud and edge segments, coupled with a cautious revenue outlook, suggest that the company still faces significant hurdles. From a technical standpoint, the stock remains in a bullish zone, trading above key moving averages, which provides some support for investors betting on a turnaround in market sentiment. For long-term investors, HPE’s continued investment in AI infrastructure and revised profit outlook could present a buying opportunity, especially if the stock stabilizes above support levels. As always, potential investors should weigh the impressive AI-driven growth against the broader challenges within the company’s diverse business segments. While the AI tailwinds are undeniable, HPE's overall performance will hinge on its ability to adapt and grow other areas of its business to match the dynamic tech landscape.
NYSE:HPELong
by DEXWireNews
Hewlett Packard Enterprise Nears $13 Billion Deal to Buy Juniper Hewlett Packard Enterprise ( NYSE:HPE ) is reportedly in advanced talks to acquire Juniper Networks ($JNPR.) in a deal valued at approximately $13 billion. This strategic maneuver aims to fortify HPE's position in the evolving AI space and capitalize on Juniper's expertise in AI-driven networking and security technologies. The Dynamics of the Deal: The potential acquisition has sent shockwaves through the market, with NYSE:HPE 's shares witnessing a 8.13% decline and Juniper experiencing a remarkable 21% surge in extended trading. If the deal materializes, it is anticipated to be announced as early as this week, according to an inside source. The move aligns with HPE's recent endeavors to expand its generative AI offerings and tap into the burgeoning opportunities in the AI domain. Unlocking the Power of AI in Networking: Juniper Networks, renowned for its high-performance network and service solutions, brings more than just robust networking capabilities to the table. The company's proficiency in AI-enabled enterprise networking operations (AIOps) and software-defined networking (SDN) is a significant asset for HPE. The integration of Juniper's AI expertise with HPE's infrastructure prowess could potentially revolutionize AI-powered IT solutions. Synergies and Innovations: The amalgamation of NYSE:HPE 's infrastructure expertise and Juniper's AI-focused networking may result in an expanded suite of AI-powered solutions for data centers, cloud environments, and edge computing. This synergy is poised to deliver sophisticated and intelligent networking solutions that optimize performance, enhance security, and streamline operations across diverse IT environments. The strategic move could expedite innovations in AI-driven automation, predictive analytics, and network optimization. NYSE:HPE 's sustained focus on expanding its generative AI offerings aligns with the growing demand for smarter, more efficient, and secure IT infrastructures in businesses worldwide. HPE's Collaborative Approach: NYSE:HPE 's commitment to advancing in the AI space is further exemplified by its collaborative efforts with NVIDIA. The partnership aims to build an enterprise computing solution designed to accelerate the adoption of generative AI applications. This comprehensive AI-native solution is anticipated to remove complexities in developing and deploying generative AI infrastructure, enabling organizations of all sizes to quickly customize models and deploy applications from edge to cloud. With the solution expected to be available for orders in the first quarter of 2024, HPE's collaboration with NVIDIA underscores its dedication to providing customers with a portfolio of pre-configured solutions, solidifying its reach into the generative AI space. Conclusion: As Hewlett Packard Enterprise takes a bold leap into the future of AI-driven networking through potential acquisition talks with Juniper Networks, the tech industry watches with bated breath. If successful, this strategic move could position NYSE:HPE at the forefront of AI innovation, offering businesses comprehensive solutions that leverage the combined strengths of infrastructure expertise and AI-driven networking capabilities. The synergy between Hewlett Packard and Juniper holds the promise of transformative advancements in AI-powered IT solutions, setting the stage for a new era in intelligent and efficient computing.
NYSE:HPELong
by DEXWireNews
Hewlett Packard Solid Performance in FY 2023, Eyes AI GrowthHewlett Packard Enterprise (NYSE:HPE) reported strong performance in fiscal year 2023, with record-breaking non-GAAP diluted net earnings per share and free cash flow, according to the latest earnings call. The company's Intelligent Edge and HPC and AI segments, as well as the HPE GreenLake platform, drove its revenue and profit growth. HPE also raised its dividends for 2024 and expressed confidence in delivering value for shareholders in fiscal year 2024 and beyond. Key takeaways from the call: i. HPE achieved significant financial success in FY 2023, with its Intelligent Edge segment being the largest driver of revenue and profit growth. ii. The company ended the year with its highest gross margin, highest operating profit, and highest annual revenue in four years. iii. HPE's as-a-service orders grew 11% year-over-year in Q4, and cumulative as-a-service TCV reached nearly $13 billion. iv. The company generated $2.3 billion in free cash flow in Q4 and $2.2 billion in FY '23, surpassing their guidance. v. The company's FY '24 guidance includes 2% to 4% revenue growth in constant currency and a non-GAAP structural tax rate of 15%. vi. HPE plans to increase its dividend by 8% in FY '24 and aims to return 65% to 75% of free cash flow to shareholders between FY '24 and FY '26. HPE executives highlighted the strong demand for AI and the company's ability to capture it. The company's strategy is focused on driving top-line growth and expanding gross margins, with a non-GAAP gross margin of 34.8% in Q4. The company also reiterated its free cash flow guidance of $1.9 billion to $2.1 billion. HPE's CEO, Antonio Neri, discussed the company's collaboration with NVIDIA (NASDAQ:NVDA) and their joint plan to win in different market segments. He highlighted HPE's unique software for running supercomputers and AI systems at scale, including technologies for checkpointing and networking interconnect. Neri also mentioned their machine learning development environment and the use of NVIDIA's AI enterprise software and GPUs. HPE's revenue mix and the flexibility of its Gen 11 server, which can accept different processing units, were also discussed during the call. The company expects a quick recovery in its storage business in Q1, with improved revenue mix and moderation in operating expenses. The company's HP (NYSE:HPQ) Electra product experienced significant growth, although some revenue was deferred due to the subscription model. The company expressed confidence in its strategic investments and innovation, which have led to revenue growth and increased profit. As a result, HPE plans to raise its dividend for 2024. The call concluded with Neri expressing wishes for a fulfilling year-end and holiday season. Technical Analysis HPE is trading in the middle of its 52-week range and above its 200-day simple moving average. Investors are still evaluating the share price, but the stock still appears to have some upward momentum. This is a positive sign for the stock's future value.
NYSE:HPQLong
by DEXWireNews
HPE and Nvidia Team Up for Full Stack Generative AI SolutionHewlett Packard Enterprise (HPE) and Nvidia, two industry giants renowned for their cutting-edge technologies, have joined forces to build a groundbreaking full stack generative AI solution. This collaboration is set to revolutionize the way we approach AI, opening up new realms of possibilities and transforming industries across the globe. By combining HPE's expertise in high-performance computing and data center solutions with Nvidia's unmatched prowess in AI and accelerated computing, this dynamic partnership promises to deliver an all-encompassing AI infrastructure that is both powerful and efficient. The full stack generative AI solution will empower businesses to unlock the true potential of AI, enabling them to develop innovative applications, drive operational efficiencies, and gain a competitive edge in today's fast-paced market. This remarkable collaboration signifies a major milestone in the AI landscape, as it brings together the best of both worlds. HPE's deep-rooted experience in delivering scalable infrastructure solutions, coupled with Nvidia's groundbreaking GPU technology, will create a synergy that is simply unparalleled. Together, they will pave the way for groundbreaking advancements in AI research, development, and deployment. Now, you may be wondering, "How can I be a part of this exciting development?" Well, as an astute trader, you understand the value of seizing opportunities at the right time. Nvidia, being at the forefront of AI innovation, is poised for remarkable growth as a result of this collaboration. Therefore, I encourage you to consider adding Nvidia to your portfolio, as it has the potential to benefit significantly from this game-changing partnership. As we witness the birth of a transformative full stack generative AI solution, it is crucial to stay ahead of the curve and invest wisely. By positioning yourself strategically, you can potentially reap substantial rewards in the coming months and years. So, let's embark on this exhilarating journey together! Take a moment to evaluate the potential of Nvidia and consider adding it to your trading portfolio. As always, thorough research and analysis are key to making informed decisions, so ensure you carefully assess the opportunities and risks involved. If you have any questions or require further information, please do not hesitate comment below. I am here to assist you in any way I can. Wishing you an exciting and prosperous trading journey!
PYTH:NVDALong
by bryandowningqln
Profit Potential Alert: Shorting HPE at Supply Zone!HPE is revisiting the supply zone, marking an excellent selling opportunity. We're seizing this chance to go short at the current price. Our outlook suggests a significant price decline, with focus on two support levels: one around the double Fibonacci near $14.2 and the other at the key demand zone around $13.8. This aligns with the downtrend trendline, expected to serve as additional support. All details, including stop loss, take profit levels, and real-time updates on trade exit are shared in our channel.
NYSE:HPEShort
by CryptoPAMM
HPQ: Bearish Head and Shoulders, Diamond, Dragon, and BAMM ComboHewlett-Packard, after making five macro waves up, has formed a Bearish Structure that can only be described as being a hybrid between a Diamond and a Head and Shoulders pattern, and along with that, it is also a combination of a Bearish Dragon and Bearish BAMM. All of this is happening after HPQ faced rejection off of the PCZ of a Bearish Crab going into its 5th wave. Here is a screenshot of the zoomed out chart that showed the biggest macro wave structure that is on the chart and where all of this is happening:
NYSE:HPQShort
by RizeSenpai
HP Will Likely Gain This Week Before DeclinesBased on historical movement, the trough could occur anywhere in the larger red box. The final targets are in the green boxes. The pending top should occur within the larger green box as has been the historical case. Half of all movement has ended in the smaller green box. In this instance, the signal indicated BUY on March 11, 2022 with a closing price of 36.29. If this instance is successful, that means the stock should rise to at least 36.71 which is the bottom of the larger green box. Three-quarters of all successful signals have the stock rise 4.499% from the signal closing price. This percentage is the bottom of the smaller green box. Half of all successful signals have the stock rise 8.594% which is the end point of the black dotted arrow. One-quarter of all successful signals have the stock rise 12.467% from the signal closing price which is the top of the smaller green box. The maximum rise on record would see a move to the top of the larger green box. These are the same concepts for the levels in the red boxes as well. The ends/vertical sides of the boxes are determined in a similar fashion. The peak of the rise can occur as soon as the next trading bar after signal close, while the max rise occurs within the limit of study at 35 trading bars after the signal. A 1% rise must occur over the next 35 trading bars in order to be considered a success. Three-quarters of successful movement occur after at least 12 trading bars; half occur within 24 trading bars, and one-quarter require at least 32 trading bars. The black dotted arrow represents median historical movement. Medians are a good metric, but they are just one of many I use when forecasting future movement. As always, the stock could decline the very next bar after the signal without looking back (therefore the red boxes would not come into play) or the stock may never decline (and the green boxes may never come into play).
NYSE:HPQ
by StockSignaler
HP Hewlett-Packard | Fundamental Analysis | MUST READ ! ! LONGShares of HP climbed 10% to a new all-time high following the company`s Q4 financial results last week. The company's revenue increased 9% from a year earlier to $16.7 billion, surpassing forecasts by $1.3 billion. Adjusted earnings rose 52% to $0.94 per share, six cents exceeding expectations. HP did not provide exact earnings estimates for fiscal 2022 but foresees adjusted EPS to grow 8%-14% in the first quarter and 7%-13% for the full year. The averages of both estimates topped Wall Street's expectations. HP's results seem to be strong, but is there any room for the stock to rise after surging more than 50 percent over the past year? Let's look at a few arguments to buy HP, and one reason to sell it, to figure it out. First, personal computer sales are still strong. HP's personal systems division, which sells laptops, desktops, and workstations, accounted for 71% of revenue during the quarter. This business encountered a solid increase through the pandemic since more people upgraded their computers to work and attend classes online. Nevertheless, the bears say the segment's growth will stall this year as the accompanying pandemic "tailwinds" have weakened and the PC market has encountered chip deficits and supply chain disruptions. The consumer-oriented segment unquestionably encountered a slowdown within the preceding two quarters, but the bears seem to have underestimated the resilience of the commercial business, which has been recovering as more businesses resume operations and upgrade their legacy systems. During a conference call, CEO Enrique Lores said HP "saw the highest demand and highest profitability" of its Windows-based commercial products during the quarter, and its supply remained "notably eminent" as it worked to eliminate component shortages. In other words, HP is still selling its commercial systems as fast as it can produce them. Second, the company's operating margins are stable. Another bearish argument against HP is that shrinking margins in the printing segment will reduce the company's profits. However, HP's overall operating margin is up 120 basis points from a year ago, with significant improvement in both the PC and print segments. In both segments, HP attributed the improved margins to favorable pricing and an improved mix of higher-margin products, which largely offset higher raw material costs and new investments. It's not a perfect balance, but solid operating margins and large buybacks (including $1.75 billion in the fourth quarter) should allow HP to continue growing earnings per share at a healthy pace. Finally, low valuations and high dividends should be kept in mind. HP stock has more than doubled since Xerox abandoned its aggressive offer last March. Today, that value is about $40 billion -- up from the $35 billion Xerox was offering. Nevertheless, HP stock still trades at eight times earnings guidance. It also pays a generous dividend yield of 3.1%, which is backed by a low payout ratio of about 24%. This low valuation and high dividend yield could make the company a good defensive play in a volatile market. However, there is one reason to sell HP: its printing business. HP's printing segment underwent momentum during the pandemic as more people bought printers for home projects, offsetting the slowdown in commercial sales due to business closures. Last year, though, the increase in the consumer segment slowed as the tailwind weakened, and the commercial segment stabilized only slightly after a steep decline in 2020. As a result, modest print segment growth of 1% year-over-year in the fourth quarter indicates that business continues to decline. Long-term unfavorable factors - including long renewal cycles, growth in paperless jobs, and competition from ink and toner manufacturers - could slow the growth of this weak segment for the foreseeable future. HP's printing business will remain the company's weakest link, but its potential may steadily develop as it expands its industrial 3D printing division and its subscription-based Instant Ink service. HP's personal systems business should remain strong, and its extension could even expedite when component shortages end. Meanwhile, large stock buybacks, high dividends, and low valuations should limit the company's downside potential and attract value-oriented investors. Simply put, HP's strengths still easily outweigh its weaknesses, and it's a good option if you're worried about a possible recession or market crash.
NYSE:HPQLong
by FOREXN1
2
I’ve got a FEVER, the only script is more $HPQIve got a hunch that there was a substantial jump in home printer purchases and it’s possibly not baked into the BCBA:HPQ stock price. This is a “No Look Pass” pass.. 1. trends.google.com it’s Google search trend of the phrase “Home Printer”.. Notice the DOUBLING of searches in March. 2. “Ok, we get it Geno.. Everyone was forced to work from home early March and had to buy all this office sh!t so they could work from home. Why would NYSE:HPQ be a trade?” Answer: Because it’s the 1st thing i realized i needed. This is the market share breakdown in the Printer world; 1. HPQ, by and landslide share of 34%. 2. Canon CAJ, 19.5%. They reported on 4/23 and just modestly beat both revenue & earnings, for the first time in a while. 3. Epson, at 17%. It trades under the ticker SEKEY, which is Seiko Epson COR/ADR, it’s a pink sheet stock (think: Wolf of Wall Street hookers), that’s traded in the OTC over the counter market. I’m prohibited from trading OTC, but if you got access, awesome-sauce! 👍 For the HP-izzel though, there's 2 tickers.. HPQ, the computer/printer stock.. Not HPE, Bad Bad Bad. 3. HPQ reports on May 21, in a week.. and they missed pretty bad in Feb (Pre Quarentined to work from home) and lowered their estimates for this current Quarter (the Quarentine Quarter). Its the QQ son! Canon CAJ, already reported on 4/23 and beat estimates and Epson is over the counter pink sheets.
NYSE:HPQLong
by jgeno
5