πŸ’»πŸ“ˆ HP ANALYSIS

in hive-159906 β€’Β  2 months agoΒ 

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The stock of personal computing powerhouse HP powered higher in early Wednesday trading, after beating fiscal fourth-quarter earnings estimates with a stick.

Instead of the $0.88 earnings per share (EPS) pro forma on sales of $15.4 billion that Wall Street had expected, HP reported EPS of $0.94 on sales of $16.7 billion last night. The company also provided guidance significantly above expectations for the first quarter of fiscal 2022 and for the coming year as a whole.

With a stock that's trading a few pennies above $36, HP shares now cost just 6.8 times trailing earnings. And they should be a real bargain if the company comes anywhere near analyst consensus estimates for 24% compound annual earnings growth over the next five years (according to data from S&P Global Market Intelligence). All of a sudden, HP kind of looks like a growth stock! And new earnings guidance reflects this.

For fiscal Q1 2022, HP predicts its GAAP profit will range from $0.92 to $0.98 per share, which is ahead of Wall Street's estimates. For the year, the company says it will earn between $3.86 and $4.06 per share -- less than it earned in a 2021 that went like gangbusters, but still much more than anyone on Wall Street is expecting -- and with pro forma profits growing a solid 10% in comparison to 2021.

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Since 24.11.2021 the stock is consolidating within an area ranging from $36.21 - $34.00.

WHAT DO I EXPECT NEXT?

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I can imagine that the HP stock will continue to consolidate within the range and might break out of its consolidation channel as soon as the entire market has strength. If the stock moves above $36.21 with higher than average volume, it might be beneficial to buy the stock. When the stock price closes below its temporary low at $34.00 the trading scenario is invalid.

What are your thoughts? Leave a comment down below πŸ‘‡

HP chart.png

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