HP (HPQ) Surged on Positive PC Sales after Seven Quarters of Decline

Greenlight Capital, an investment management firm, released its second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the Greenlight Capital funds returned 2.8% net of fees and expenses, compared to 4.3% for the S&P 500 index. The longs in the portfolio underperformed the S&P 500 and the shorts outperformed the inverse of the S&P 500. However, the portfolio maintained a neutral net long exposure of about 40%. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Greenlight Capital highlighted stocks like HP Inc. (NYSE:HPQ) in the second quarter 2024 investor letter. HP Inc. (NYSE:HPQ) is a provider of personal computing and other digital access devices, imaging and printing products, and related technologies, solutions, and services. The one-month return of HP Inc. (NYSE:HPQ) was -1.30%, and its shares gained 13.82% of their value over the last 52 weeks. On August 23, 2024, HP Inc. (NYSE:HPQ) stock closed at $35.66 per share with a market capitalization of $34.895 billion.

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.”

A laptop, showing off the companys sleek notebook computers and workstations.

HP Inc. (NYSE:HPQ) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held HP Inc. (NYSE:HPQ) at the end of the second quarter which was 46 in the previous quarter. While we acknowledge the potential of HP Inc. (NYSE:HPQ) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed HP Inc. (NYSE:HPQ) and shared the list of eco-friendly companies in 2024. Greenlight Capital established a position in HP Inc. (NYSE:HPQ) during Q1 2024. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.