HP Inc. Stands to Gain From Strengthening Japanese Yen

Shareholders of HP Inc. (HPQ) - Get Report stand to benefit from a positive earnings surprise this week if the strong yen has been squeezing sales for the printing giant's Japanese competitors. For one thing, the rebounding currency has already begun to help U.S. companies edge out some competitors abroad -- for example, U.S.-based construction companies, such as Caterpillar (CAT) - Get Report that are in head-to-head competition with Japanese companies like Tokyo-based Komatsu. And despite the Bank of Japan's efforts to tamp down Japan's interest rates in hopes of stabilizing the country's price levels and keeping foreign competition at bay, the yen has been climbing sharply since the printing giant reported its fiscal second-quarter earnings in May. The dollar now buys just about 100 yen vs. about 110 when HP last rolled out earnings.

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