HP Inc.: Growth, Cheap, Dividends, Buybacks

Aug. 30, 2021 1:29 AM ETHP Inc. (HPQ) StockHPQ22 Comments
Ruerd Heeg
3.37K Followers

Summary

  • HP is a PC/printer manufacturer facing several risks and challenges: supply chain challenges, margin risk for printing supplies, and a hesitant market for its shares after a huge runup.
  • However, HP is cheap based on several fundamentals: EV/EBIT, EV/Revenue, and P/FCF. Moreover, the company pays a good dividend and has bought back shares.
  • Expectations are positive because of expected increases in PC usage, extra PC demand from the release of Windows 11 and extra demand as more people return to their offices.

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Although HP (NYSE:HPQ) is a large company with a large market capitalization, its business is simple to describe. The company has 2 main business segments: Printing and Personal Systems. In the first segment, the company sells printers and supplies; and

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This article was written by

3.37K Followers
As a mathematician (Ph.D.) I use 7 quantitative strategies with statistically extremely high returns. I select these cheap companies with software comparing thousands of global stocks on value metrics, liquidity, quality metrics, and momentum. I focus on global nanocaps and net-nets. Check Turning Rough Stones: turningroughstones.substack.com

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

While this stock is cheap for investors focusing on US-listed stocks I expect higher returns from cheaper international stocks.

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