Shares of Hewlett Packard Enterprise (HPE - Get Report) are up 29% thus far in 2016, but the stock's valuation remains cheap which bodes well for a second half run, said Robert Burnstine, president of Fairpointe Capital. 'HP Enterprises still trades at a deep discount to the market at less than 10 times earnings where the market is at around 16 times next year's earnings,' said Burnstine. Burnstine added that he applauds CEO Meg Whitman's decision decision to spin off the company's enterprise services business and merge it with Computer Sciences Corporation (CSC) . Burnstine helps oversee the ASTON/Fairpointe Focused Equity Fund which is up 7.2 percent thus far in 2016, according to Morningstar. The $7 million fund is down 8.6 percent over the past 12 months and sports a trailing 12 month yield of 1.1 percent, according to Morningstar. Burnstine is also bullish on HP Inc. (HPQ - Get Report) , up nine percent year-to-date, despite the long term decline of its printer business. HP's printing division revenue fell 16 percent year over year in the company's April quarter -- 10 percent excluding currency swings -- to $4.64 billion. The division's operating income fell 18 percent to $801 million. Supplies revenue fell 16 percent while printer sales fell 16 percent on a unit basis. 'Their printer business is declining but is a fantastic free cash flow generating machine,' said Burnstine.
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