HP Inc. shares took a hit on Monday, following a rating downgrade by Bernstein Research.
Bernstein reduced its rating on the tech company's stock to market perform from outperform, citing structural headwinds to HP's printing unit amidst a shift to digital.
In its third quarter, HP experienced a -5% decline in revenue from its printing unit. However, outgoing CEO Dion Weisler told investors on an earnings call last month HP "outperformed the market in an increasingly challenging environment,".
HP's PC segment saw a +6% revenue growth in the latest quarter ,and a +51% surge its profit margin . But Bernstein analysts seemed apprehensive as to whether HP can sustain its strong performance in its PC unit, given the threats posed by the ongoing U.S.-China tariff war.
HP stock price fell -1.83%, following the downgrade by Bernstein.
HPQ moved above its 50-day moving average on May 15, 2023 date and that indicates a change from a downward trend to an upward trend. In of 38 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on May 17, 2023. You may want to consider a long position or call options on HPQ as a result. In of 84 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for HPQ just turned positive on May 18, 2023. Looking at past instances where HPQ's MACD turned positive, the stock continued to rise in of 50 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where HPQ advanced for three days, in of 345 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 7 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where HPQ declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for HPQ entered a downward trend on May 23, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. HPQ’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.000) is normal, around the industry mean (4.100). P/E Ratio (12.136) is within average values for comparable stocks, (45.077). Projected Growth (PEG Ratio) (184.107) is also within normal values, averaging (89.081). Dividend Yield (0.033) settles around the average of (0.046) among similar stocks. P/S Ratio (0.531) is also within normal values, averaging (11.777).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a developer of imaging and printing systems, computing systems and information technology solutions
A.I.dvisor indicates that over the last year, HPQ has been closely correlated with DELL. These tickers have moved in lockstep 83% of the time. This A.I.-generated data suggests there is a high statistical probability that if HPQ jumps, then DELL could also see price increases.
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