HP Inc. (HPQ:NYE) Analysts rate with a Underperform, $35 target

STA Research
by: STA Research

Based on the HP Inc. stock forecasts from 10 analysts, the average analyst target price for HP Inc. is USD 35.64 over the next 12 months. HP Inc.’s average analyst rating is Under-perform. Stock Target Advisor’s own stock analysis of HP Inc. is Very Bullish, which is based on 10 positive signals and 1 negative signal. At the last closing, HP Inc.’s stock price was USD 35.06. HP Inc.’s stock price has changed by -2.45% over the past week, -1.73% over the past month and +8.51% over the last year.

Citigroup downgraded the stock to Neutral from Buy, and cut the target to $38 from $40.

In the United States and globally, HP Inc. provides personal computing and other access devices, image and printing products, and related technologies, solutions, and services. Personal Systems, Printing, and Corporate Investments are the company’s three segments. Hewlett-Packard Company was the previous name of the company, which changed to HP Inc. in October 2015. HP Inc. is based in Palo Alto, California, and was formed in 1939.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk-adjusted returns

This stock has performed well, on a risk-adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

Superior total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

High dividend returns

The stock has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on total return basis, for investors seeking high income yields.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Dividend Growth

This stock has shown top quartile dividend growth in the previous 5 years compared to its sector

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector.

 

 

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