Palo Alto, California-based HP Inc. (HPQ) provides personal computing, printing, 3D printing, hybrid work, gaming, and other related technologies in the United States and internationally. The company has a market cap of $29.5 billion and operates through three segments: Personal Systems, Printing, and Corporate Investments, and offers commercial and consumer desktops and notebooks, workstations, thin clients, retail point-of-sale systems, displays, software, and more.
Companies with a market cap of $10 billion or more are typically referred to as “large-cap stocks.” HPQ fits squarely in that category, with a market cap above this threshold that reflects its size and influence in the computer hardware industry.
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Despite its strength, HPQ stock slipped 1.3% from its 52-week high of $33.17, reached in the last trading session. The stock is up 32.6% over the past three months, rallying the S&P 500 Index’s ($SPX) 4.5% rise during the same time frame.
www.barchart.comHowever, the scenario changes in the longer term. The stock has grown 15.4% over the past 52 weeks, while SPX delivered 16.2% returns over the same time frame, outperforming the stock.
HPQ has been trading above its 200-day and 50-day moving averages since the start of April, indicating bullish momentum.
www.barchart.com HPQ’s long-term underperformance over the past year can be traced back to its not-so-lucrative fundamentals. Analysts and investors are cautious of the stock as the demand for its products is forecasted to shrink, and its sales figures are expected to remain flat over the course of the next 12 months. Moreover, the company’s sales declined by 1.2% annually over the last five years, showcasing some end-market challenges for its products and services. Finally, HPQ’s incremental sales over the last two years showed lower profitability, with its EPS remaining flat.
When stacked against its rival, Dell Technologies Inc. (DELL), HPQ has underperformed. Over the past year, DELL stock has grown 307.1%.
Moreover, Wall Street currently has an uncertain view of the stock. Among the 15 analysts tracking HPQ, the overall consensus stands at a “Hold.” Its mean price target of $27.88 is below the current price. However, its Street-high price target of $38 indicates a 16.1% upside.
On the date of publication, Aritra Gangopadhyay did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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