We recently published a list of Top 10 Stocks on Analysts’ Radar These Days. In this article, we are going to take a look at where HP Inc. (NYSE:HPQ) stands against other top stocks on analysts’ radar these days.
Fundstrat’s Tom Lee said in a recent program on CNBC that he is still optimistic about the stock market despite recent selloffs. Here is how he explained some of the reasons behind his rationale:
“I can understand why investors are sitting on their hands. I mean, they don’t really know how severe these tariffs are going to be or how long they’ll last. But now we’re seeing a big price correction and a decline in sentiment. Then something like today happens—we get a bad ADP jobs report, and the market is actually up. So we’re rising on bad news, which is a good sign that a lot of bad news is already priced in.”
Lee believes the market’s near-term bottom is close as he talked about the importance of staying invested during the “best days.”
“In my mind, we put out a piece yesterday just talking about the 10 best days that happen every year. Last year, for instance, the 10 best days added up to 21 percentage points of the S&P. Without those 10 days, the market was only up 4%. So, you know, you don’t get 20% years because it’s good throughout the year—it’s just the 10 best days. I think the setup for a 10 best day is near because if the economy’s near stall speed, I think people realize the Trump put does come back because otherwise it has to unwind all this austerity. And if the job market’s soft, the Fed put comes back into play because the Fed doesn’t want to deal with stall speed.I think that’s what’s going to be the positive catalyst in the next couple of weeks. On top of that, we already know stocks will bottom before bad news peaks. So if we’re seeing the market not fade on bad news, it means we’ve already priced in a lot of things that would normally scare us.”
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In
For this article, we picked 10 stocks currently trending on the latest news. With each stock we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A laptop, showing off the companys sleek notebook computers and workstations.
HP Inc. (NYSE:HPQ)
Number of Hedge Funds Investors: 42
Senior markets correspondent George Tsilis said in a latest program on Schwab Network that HP Inc. (NYSE:HPQ) is becoming a value and income story.
“It’s trading around nine times forward earnings, so it’s already priced relative to basically flat growth in terms of sales and earnings, at best in the low to mid-single digits. I think the expectations for this company aren’t necessarily about growth—it really comes down to value and income. They do produce sufficient income to sustain their dividend, which is approximately $1.16 per share. If you look at earnings estimates for fiscal year 2025, prior to the reported earnings, it’s around $3.59, and for 2026, it’s $3.75. So for what it’s worth, it’s not showing significant topline sales or earnings growth, but it’s not a bad business if you consider it as an investment. You just have to be aware that it’s more of an income investment rather than a growth story. However, given the rising demands of artificial intelligence, many older CPUs—those from the past two to five years—may be outdated considering the increased computing power requirements AI brings.”
Greenlight Capital stated the following regarding HP Inc. (NYSE:HPQ) in its Q2 2024 investor letter:
“In addition to gold, we had four material winners in our long portfolio this quarter. HP Inc. (NYSE:HPQ) jumped from $30.22 to $35.02. After seven quarters of declines, PC sales turned marginally positive during the quarter. The industry appears to be in the early stages of an upcycle, perhaps to be enhanced by recently launched AI-enabled PCs that are expected to ramp up over the next several quarters.”
Overall, HPQ ranks 9th on our list of top stocks on analysts’ radar these days. While we acknowledge the potential of HPQ as an investment, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HPQ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
