HP continues to be valued at a very low forward P/E of 7. By comparison, competitor Microsoft’s (MSFT) forward P/E is 14 and Google’s is 25.
Competition risingGoogle and Acer (OTC:ACEIF) just announced a Chromebook for $199. This will mean more competition for HP on the low-end range of Chromebooks. The HP Chromebooks could find appeal for consumers in the 14-inch range, but HP will probably need to boost the specifications on the 11-inch model to compete effectively. (Written by Chris Lau, a Kapitall contributor. All data sourced from Zacks Investment Research.)