HP stock: buy or sell?

HPQ stock price: $18.93 -0.16% At close on August 22nd, 2019

Updated on:
August 22nd, 2019

1

The information technology company ended today at $18.93 and stayed stable a tight -0.16%.

HP Inc. provides products, technologies, software, solutions, and services to individual consumers, small- and medium-sized businesses, and large enterprises, including customers in the government, health, and education sectors worldwide.

Should I buy HP stock?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best time to buy them. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

None of our preferred buy setups matches with HP stock situation right now, therefore this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is HP stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we detected 6 ratings published for HPQ stock in the last 30 days.

The general sentiment of these ratings is bearish for HPQ stock, with 1 negative ratings.
Is HPQ a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-20CitigroupBuyNeutral
2019-6-25JPMorgan Chase & Co.n/aNeutral
2019-5-24Morgan Stanleyn/aEqual Weight
2019-4-11Credit Suisse Groupn/aNeutral
2019-2-28Bank of AmericaBuyUnderperform
2019-2-27BMO Capital Marketsn/aHold

HP stock analysis

Daily outlook

HP shares stayed stable -0.16% to $18.93 today.

Shares of the information technology company closed today at $18.93 and stayed steady a tight -0.16%. Since August 2nd when HPQ stock price broke down the SMA200d line, it slid $-2.06 per share (-9.81%). Since July/16 when SMA50d and SMA100d crossed up, HPQ price slipped $-2.42 per share (-11.33%).

HPQ stock chart (daily)

Weekly outlook

Shares of the Palo Alto headquarted company ended this week at $18.93 and declined an ugly -0.79%. This was the 4th red week in a row, sliding in full a -12.11%. Late July HPQ plummed a scary -6.85% in just one week.

Price pattern shows an uptrend with two rising tops and bottoms, and now trading upwards to the $21.74 resistance. Since price and 40-weeks moving average lines crossed down late July, HPQ fell $-2.59 per share (-12.04%). Stocks below the 40-weeks moving average line are usually not recommended for average traders. Far behind is the all-time high the Palo Alto headquarted company marked early October and since then the price is -28.43% below that top.

HPQ stock chart (weekly)

HP stock price history

HP stock historical price chart

HPQ stock reached all-time highs on October with a price of $26.45.

HP stock price target is $21.40

How much a stock will be priced tomorrow or next week is quite unpredictable However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. We have 5 price forecasts for the Palo Alto headquarted company stock released in the last month:
HPQ stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-20CitigroupDowngrades$25.00$21.00-16%
2019-6-25JPMorgan Chase & Co.Raises Target$21.00$22.004.8%
2019-5-24Morgan StanleyRaises Target$22.00$23.004.5%
2019-2-28Bank of AmericaDowngradesn/a$19.00-
2019-2-27BMO Capital MarketsReiteratesn/a$22.00-
(in average)$22.70$21.40-6.0%
Moving in a range from $23.00 and $19.00, the price prediction for HPQ stock is $21.40. In average, analysts' outlook on HPQ price forecast is negative, downgrading the prediction by a -6.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since February, when HP presented its last earnings report, it . As soon as we get its posted EPS from the earnings report, we will extend this report.
HPQ earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.4n/a
2017-Q3-n/a0.45n/a
2017-Q42017-11-210.440.440.0%
2018-Q12018-02-220.420.4814.3%
2018-Q22018-05-290.480.480.0%
2018-Q32018-08-230.50.524.0%
2018-Q42018-11-290.540.540.0%
2019-Q12019-02-270.520.520.0%
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual sales report draw an amazing gain of 12.33% to $58,472.00 million USD. Instead, its income margin (compared to sales) inched to 9.11%, that is $5,327.00 million.

To have an up to date view of the financial situation of HP, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual HP TTM sales up to January 2019 were $58,665.00 and income was $4,192.00 M dollars. If we compare this TTM figures with the last reported annuality, we can review Hewlett-Packard business evolution since October 2018: Annual sales up to January, compared to lastest yearly report, stayed stable a tight 0.33%. By contrast, profit margin (net income/sales) depreciated at 9.11%.

HPQ annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$112,250 M-$5,110 M4.6%-
2014$111,480 M-0.69%$5,010 M4.5%-1.96%
2014$111,454 M-0.02%$5,013 M4.5%0.06%
2015$50,470 M-54.72%$3,720 M7.4%-25.79%
2015$103,355 M104.79%$4,554 M4.4%22.42%
2016$48,220 M-53.35%$2,670 M5.5%-41.37%
2016$48,238 M0.04%$2,496 M5.2%-6.52%
2017$52,210 M8.23%$2,530 M4.8%1.36%
2017$52,056 M-0.29%$2,526 M4.9%-0.16%
2018$58,472 M12.33%$5,327 M9.1%110.89%
TTM $58,665 M0.33%$4,192 M7.1%-21.31%

Quarterly financial results

HP reported $14,710.00 M in sales for 2019-Q1, a -4.27% decline compared to previous quarter. Reported quarter income marked $803.00 M with a profit margin of 5.46%. Profit margin decreased a -3.98% compared to previous quarter when profit margin was 9.44%. When comparing sales to same quarter last year, HP sales marked a slightly good increase and appreciated a 1.33%.
HPQ quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$12,350 M-$559 M4.5%-
2017-Q3$13,090 M5.99%$696 M5.3%24.51%
2017-Q4$13,927 M6.39%$660 M4.7%-5.17%
2018-Q1$14,517 M4.24%$1,938 M13.3%193.64%
2018-Q2$14,003 M-3.54%$1,058 M7.6%-45.41%
2018-Q3$14,586 M4.16%$880 M6.0%-16.82%
2018-Q4$15,366 M5.35%$1,451 M9.4%64.89%
2019-Q1$14,710 M-4.27%$803 M5.5%-44.66%

HP ownership

When you are planning to invest in shares of a company, it's always worth to check its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For HP, 0.23% of all outstanding shares are owned by its staff.

Bearish positions for HPQ stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to HP:

HPQAAPLCAJCSCOIBM
Market cap$28.6 B$978.1 B$27.8 B$206.2 B$119.0 B
Total shares1,510.0 M4,600.0 M1,080.0 M4,280.0 M886.6 M
Float shares1,500.0 M4,260.0 M1,050.0 M4,280.0 M885.1 M
  - Institutional holdings (%)83.9%61.0%1.2%77.3%57.5%
  - Insider holdings (%)0.2%0.1%0.0%0.1%0.1%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

HP summary

Thursday, August 22nd, 2019
Open$19.01
Close$18.93
Day range$18.83 - $19.11
Previous close$18.96
Session gain-0.16%
Average true range$0.55
50d mov avg$20.43
100d mov avg$19.94
200d mov avg$20.66
Daily patternlt03a
Weekly pattern lb02a

HP performance

To better understand HP performance you must compare its gains with other related stocks in same sector or industry. In the following table, we compare HP performance to Apple, Canon, Cisco Systems, International Business Machines, Intel, Microsoft, Oracle, Super Micro Computer and Xerox:
Stock3m6m12m
HPQHP-4.73%-18.93%-19.28%
AAPLApple19.27%23.88%-0.10%
CAJCanon-8.47%-12.27%-16.11%
CSCOCisco Systems-10.83%-2.63%6.88%
IBMInternational Bus...2.68%-1.29%-3.58%
INTCIntel5.67%-9.73%0.69%
MSFTMicrosoft9.51%25.04%29.10%
ORCLOracle1.18%2.19%9.76%
SMCISuper Micro Compu...0.20%1.06%21.79%
XRXXerox-9.69%-7.77%8.37%

HP competitors

We picked a few stocks to conform a list of HP competitors to examine if you are interested in investing in HPQ:

Latest HP stock news