12-Month Net Income Growth: 14%
Quarterly Operating Profit Margin: 11%
Cash Flow Multiple: 8.2 (39% peer discount)
Analysts' Median Target: $55.40
3-Year Dividend Growth: -7.2%
Dividend Yield: 0.8%
Payout Ratio: 9%
2011 Catalyst: HP's stock price has suffered since CEO Mark Hurd departed in August. But it is one of the cheapest technology large-caps. Its sells for a forward earnings multiple of 7.4, a book value multiple of 2.4 and a sales multiple of 0.8, discounts of up to 76% to computer and peripheral industry averages. Value is no guarantee of performance. HP's stock has suffered annualized loss of 6.4% since 2007. A movement into cloud-computing should help in 2011. HP has completed eight acquisitions in 2010. One deal is pending. A pick-up in consumer sentiment, evident in the 74.2 read of last week's U. Michigan sentiment survey, should abet a laggard consumer segment. Bullish Scenario: Citigroup values Hewlett-Packard at $70, implying 65% of upside. Bearish Scenario: Deutsche Bank, ranking the stock "hold", expects it to climb to $45.