HP Stock Buy Hold or Sell Recommendation

HPQ
 Stock
  

USD 32.49  0.96  2.87%   

Considering the 90-day investment horizon and your way above-average risk tolerance, our recommendation regarding HP Inc is 'Hold'. Macroaxis provides HP buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding HP positions. The advice algorithm takes into account all of HP's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from HP's buy-and-hold perspective. Please check HP Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as HP and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards HP Inc.

Execute HP Buy or Sell Advice

The HP recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on HP Inc. Macroaxis does not own or have any residual interests in HP Inc or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute HP's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell HPBuy HP
Hold

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

UndervaluedDetails

Odds of Distress

LowDetails

Economic Sensitivity

Responds to the marketDetails

Analyst Consensus

SellDetails

Financial Strenth (F Score)

PoorDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Possible ManipulatorDetails
For the selected time horizon HP Inc has a Risk Adjusted Performance of (0.09), Jensen Alpha of (0.18), Total Risk Alpha of (0.18) and Treynor Ratio of (0.13)
Our trade advice module can be used to complement HP Inc advice provided by average analyst sentiment. It analyzes the entity's potential to grow using fundamental, technical, data market data available at this moment. To make sure HP Inc is not overpriced, please check out all HP Inc fundamentals, including its shares owned by insiders, cash and equivalents, number of employees, as well as the relationship between the price to sales and book value per share . Given that HP Inc has a price to earning of 5.95 X, we strongly advise you to confirm HP market performance and probability of bankruptcy to ensure the company can sustain itself this quarter and beyond given your latest risk tolerance and investing horizon.

HP Trading Alerts and Improvement Suggestions

HP Inc generated a negative expected return over the last 90 days
The company has 10.23 B in debt with debt to equity (D/E) ratio of 0.88, which is OK given its current industry classification. HP Inc has a current ratio of 0.79, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Debt can assist HP until it has trouble settling it off, either with new capital or with free cash flow. So, HP's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like HP Inc sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for HP to invest in growth at high rates of return. When we think about HP's use of debt, we should always consider it together with cash and equity.
HP Inc has a poor financial position based on the latest SEC disclosures
Over 90.0% of HP shares are owned by institutional investors
On 6th of July 2022 HP paid $ 0.25 per share dividend to its current shareholders
Latest headline from www.nasdaq.com: Zacks Earnings ESP A Better Way to Find Earnings Surprises for Oils and Energy - Nasdaq

HP current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. HP analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. HP analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price37.40
Target Median Price37.50
Target High Price50.00
Recommendation Mean3.10
Number Of Analyst Opinions15
Target Low Price29.00
Average Consensus Sell
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

HP Returns Distribution Density

The distribution of HP's historical returns is an attempt to chart the future uncertainty of HP's future price movements. The chart of the probability distribution of HP stock daily returns describes the distribution of returns around its average expected value. We use HP Inc price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of HP returns is essential to provide solid investment advice for HP stock.
Mean Return-0.19Value At Risk-4.31
Potential Upside4.02Standard Deviation2.53
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of HP historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

HP Cash Flow Accounts

201720182019202020212022 (projected)
Capital Expenditure(374 M)(671 M)(577 M)(582 M)(669.3 M)(722.14 M)
Depreciation Amortization and Accretion528 M744 M789 M785 M706.5 M725.09 M
Net Cash Flow or Change in Cash and Cash Equivalents(1.83 B)(629 M)327 M(565 M)(508.5 M)(548.64 M)
Issuance Purchase of Equity Shares(2.5 B)(2.47 B)(3.23 B)(6.3 B)(7.25 B)(7.44 B)
Issuance Repayment of Debt Securities(2.24 B)(1.41 B)1.26 B1.28 B1.15 B1.24 B
Payment of Dividends and Other Cash Distributions(899 M)(970 M)(997 M)(938 M)(1.08 B)(1.16 B)
Net Cash Flow from Financing(5.64 B)(4.84 B)(2.97 B)(5.96 B)(5.37 B)(5.79 B)
Net Cash Flow from Investing(716 M)(438 M)(1.02 B)(1.01 B)(1.16 B)(1.26 B)
Net Cash Flow Investment Acquisitions and Disposals694 M691 M(439 M)424 M487.6 M526.09 M
Net Cash Flow from Operations4.53 B4.65 B4.32 B6.41 B5.77 B6.14 B
Share Based Compensation224 M268 M297 M278 M330 M326 M

HP Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to HP or Technology sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that HP stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a HP stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
-0.18
β
Beta against DOW1.51
σ
Overall volatility
2.53
Ir
Information ratio -0.07

HP Volatility Alert

HP Inc exhibits very low volatility with skewness of -0.08 and kurtosis of 0.02. However, we advise investors to further study HP Inc technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure HP's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact HP's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

HP Implied Volatility

HP's implied volatility" href="/stock-options/HPQ/HP-Inc">HP's implied volatility exposes the market's sentiment of HP Inc stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if HP's implied volatility" href="/stock-options/HPQ/HP-Inc">HP's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that HP stock will not fluctuate a lot when HP's options" href="/stock-options/HPQ/HP-Inc">HP's options are near their expiration.

HP Fundamentals Vs Peers

Comparing HP's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze HP's direct or indirect competition across all of the common fundamentals between HP and the related equities. This way, we can detect undervalued stocks with similar characteristics as HP or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of HP's fundamental indicators could also be used in its relative valuation, which is a method of valuing HP by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare HP to competition
FundamentalsHPPeer Average
Return On Equity(0.0002) %(0.31) %
Return On Asset9.71 %(0.14) %
Profit Margin9.61 %(1.27) %
Operating Margin10.03 %(5.51) %
Current Valuation40.32 B16.62 B
Shares Outstanding1.03 B571.82 M
Shares Owned by Insiders0.17 %10.09 %
Shares Owned by Institutions89.76 %39.21 %
Number of Shares Shorted55.33 M4.71 M
Price to Earning5.95 X28.72 X
Price to Book0.69 X9.51 X
Price to Sales0.51 X11.42 X
Revenue65.48 B9.43 B
Gross Profit13.42 B27.38 B
EBITDA6.57 B3.9 B
Net Income6.29 B570.98 M
Cash and Equivalents4.48 B2.7 B
Cash per Share4.33 X5.01 X
Total Debt10.23 B5.32 B
Debt to Equity0.88 %48.70 %
Current Ratio0.81 X2.16 X
Book Value Per Share(1.84) X1.93 K
Cash Flow from Operations6.11 B971.22 M
Short Ratio5.75 X4.00 X
Earnings Per Share5.46 X3.12 X
Price to Earnings To Growth1.03 X4.89 X
Number of Employees51 K18.84 K
Beta0.93-0.15
Market Capitalization33.6 B19.03 B
Total Asset29.01 B29.47 B
Retained Earnings(755.57 M)9.33 B
Working Capital(340 M)1.48 B
Current Asset18.47 B9.34 B
   Exercise or conversion by Kristen Ludgate of 82167 shares of HP subject to Rule 16b-3 [view details]

About HP Buy or Sell Advice

When is the right time to buy or sell HP Inc? Buying financial instruments such as HP Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although HP investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Receivables7.47 B7.84 B9.02 B13.09 B
Inventories5.96 B7.93 B9.12 B8.43 B

Use Investing Ideas to Build Portfolios

In addition to having HP in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Shipbuilding Railroad Equipment Thematic Idea Now

Shipbuilding Railroad Equipment
Shipbuilding Railroad Equipment Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Shipbuilding Railroad Equipment theme has 13 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Shipbuilding Railroad Equipment Theme or any other thematic opportunities.
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Please check HP Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the HP Inc information on this page should be used as a complementary analysis to other HP's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Money Managers module to screen money managers from public funds and ETFs managed around the world.

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Is HP's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of HP. If investors know HP will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about HP listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.041
Market Capitalization
34.7 B
Quarterly Revenue Growth YOY
0.039
Return On Assets
0.0971
The market value of HP Inc is measured differently than its book value, which is the value of HP that is recorded on the company's balance sheet. Investors also form their own opinion of HP's value that differs from its market value or its book value, called intrinsic value, which is HP's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because HP's market value can be influenced by many factors that don't directly affect HP's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between HP's value and its price as these two are different measures arrived at by different means. Investors typically determine HP value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, HP's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.