Background: Hewlett-Packard is one of the leading global providers of computing and imaging solutions and services for business and home. The company is focused on capitalizing on the opportunities of the Internet and the proliferation of electronic services. Its major businesses include imaging and printing systems, computing systems and information technology services. Hewlett-Packard trades an average of 23.8 million shares per day and has a market cap of $34.7 billion.
52-Week High: $30.0052-Week Low: $17.41 Book Value: $16.03 From a technical perspective, the chart is bearish and ugly with all the major moving averages pointing almost straight down. HPQ is not likely to continue "breaking bad," with a major oversold timing indication on the daily and weekly charts. It took Sprint over a year to regain its footing, and I would not expect Hewlett-Packard to take any less time. Fundamentally, the shares are attractive from an expected-earnings point of view. The mean fiscal year price-to-earnings ratio is 4.3, based on estimated earnings of $4.05 per share. Especially attractive is the dividend yield. With the share price depressed, the yield has moved up to 3%. The company currently has an annualized dividend of 53 cents. Even with a big drop in earnings, the dividend appears safe for now. Over the last month of trading, HPQ lost about 5.3%, placing it near 52-week lows. Management has improved year-over-year revenue. Revenue was $127.25 billion in fiscal year 2011, compared to $126.03 billion the previous year. Currently, the short interest based on the float is small and not a big concern at 2.8%. This indicates that short sellers don't believe there's much more downside potential with Hewlett-Packard shares.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV