Home News Stock Watch: HP (NYSE: HPQ)

Stock Watch: HP (NYSE: HPQ)

SHARE

HP trades as part of the technology sector and computer hardware industry. The company CEO is Dion J. Weisler. Hewlett-Packard Company is a provider of products, technologies, software, solutions and services to individual consumers, small- and medium-sized businesses and large enterprises, including customers in the government, health and education sectors.

Previous Intraday Trading Performance:

The HPQ stock showed a previous change of 4.38% with an open at 19.76 and a close of 20.03. It reached an intraday high of 20.23 and a low of 19.40.

SeekingAlpha:  McDonald’s: Dividend Aristocrat For Total Return And Income

Liquidity:

The stock has a market cap of $30.7b with 1.5b shares outstanding, of which the float is 1.5b shares. Trading volume reached 13,545,630 shares compared to its average volume of 10,174,952 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, HP shares returned 5.64% and in the past 30 trading days it returned -0.89%. Over three months, it changed -15.52%. In one year it has changed -6.12% and within that year its 52-week high was 27.08 and its 52-week low was 18.06. HPQ stock is 10.91% above its 52 Week Low.

Our calculations show a 200 day moving average of 22.03 and a 50 day moving average of 19.64. Currently HPQ stock is trading -9.06% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

SeekingAlpha:  HP bull praises ‘refreshingly solid’ print

Earnings:

The last annual fiscal EPS for the company was reported at 3.24 that ended on 31st of October 2018, which according to the previous close, that is a PE of 6.18. Based on 4 analyst estimates, the consensus EPS for the next quarter is 0.52. The TTM EPS is 2.06, which comes to a TTM PE of 9.72. Historically, the PE high was 18.20 and the PE low was 3.60. If the stock reached its PE low, that would represent a price of 7.42, which is a decrease of -62.96%.

Below was the last reported quarterly diluted earnings per share:

Apr19 0.51
Jan19 0.51
Oct18 0.91
Jul18 0.54
Apr18 0.64

The dividend per share is currently 0.64, which is a dividend yield of 3.20%. Also, the payout ratio is 31.11%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 32.52, which means it is possibly undervalued and has a margin of safety of 38.40%.

Indicators to Watch:

Short-interest was 17,115,943, which was 1.12% of shares outstanding. The short-interest ratio or days-to-cover ratio was 1.35. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 1.38.

SeekingAlpha:  HP Inc. 2019 Q2 – Results – Earnings Call Slides

Fundamental Indicators:

Based on last reported financials, the company’s return on assets is 12.23%, profit margin is 6.67%, price-to-sales is 0.50 and.

Company Scores:

All scores are out of six:
 3  :Valuation Score
 2  :Past Performance Score
 3  :Financial Strength Score
 1  :Future Growth Score
 4  :Dividend Score
 2  :Overall Score

SHARE
John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.