UBS’ Bottom Quant Stocks In AI, IT, Healthcare & Others: 29 Stocks In All Sectors

25. HP Inc. (NYSE:HPQ)

Number of Hedge Fund Investors In Q2 2024: 41

Sector: Information Technology

HP Inc. (NYSE:HPQ) is one of the most iconic personal computing firms in the world. It is also one of the oldest Silicon Valley computing companies and has transformed itself over the course of the years from selling calculators to laptops and printers. Since its founding, the original HP has been split into two companies, with HP Inc. (NYSE:HPQ) being exposed to the personal computing market. This also means that a slowdown in personal computing sales driven by a sluggish consumer spending environment has hampered the stock this year. HP Inc. (NYSE:HPQ)’s shares are up by a lackluster 23% year to date despite AI taking the broader technology industry by storm and despite its consumer exposure creating the potential to benefit from AI consumer PCs. Most of these gains have come on the back of the firm’s second-quarter earnings report which saw it beat analyst revenue estimates of $12.6 billion by posting $12.8 billion in the segment. HP Inc. (NYSE:HPQ) believes that AI consumer PC demand can materialize in 2025, and if it does, then it could create tailwinds for the stock when paired with a potential consumer recovery.

Greenlight Capital mentioned HP Inc. (NYSE:HPQ) in its Q2 2024 investor letter. Here is what the fund said:

“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.”