HP
Personal computer and printer maker HP Inc. (NYSE: HPQ) has seen more than 15% drop from its share price over the past 12 months. The stock has gained 8.8% so far in 2023 but is still down about 25% from its 52-week high last April. Still, the company has boosted its dividend, and that is why HP continues to attract investors. PC shipments have been forecast to drop by 7% this year, a significant improvement from 2022’s drop of 16%. HP and competitors like Dell and Lenovo will be trying to bring inventory levels into line with sales.
Analysts remain cautious on HP stock. Of 17 brokerages covering it, 12 have a Hold rating, while just one has a Buy rating. At a share price of around $29.20, the upside potential based on a median price target of $30.00 is 2.7%. At the high price target of $33.00, the upside potential is 13%.
Revenue in the company’s first quarter of fiscal 2023 is forecast to come in at $14.17 billion, down 4.3% sequentially and by 16.8% year over year. Adjusted EPS are forecast at $0.75, down 12% sequentially and 31.8% lower year over year. For the full fiscal year ending in October, analysts anticipate EPS of $3.29, down 19.4%, on sales of $56.8 billion, down 9.8%.
HP stock trades at 8.9 times expected 2023 EPS, 8.1 times estimated 2024 earnings of $3.63 and 7.6 times estimated 2025 earnings of $3.83. per share. The stock’s 52-week range is $24.07 to $41.47. HP pays an annual dividend of $1.05 (yield of 3.59%). Total shareholder return for the past year is negative 12.69%.
Rivian
One positive thing an investor can say about Rivian Automotive Inc. (NASDAQ: RIVN) stock last year is that it did not disappear completely. Ford, an early investor in the EV maker, has dumped its stake in the company. Another big investor, Amazon, wrote down some $2.3 billion on its investment in Rivian. Amazon has, however, taken delivery of more than 1,000 Rivian electric delivery vans since November, leaving a lot of room for the number to grow to the 100,000 vans Amazon said in 2019 it wanted from the company.
Of 20 analysts covering the stock, 14 have a Buy or Strong Buy rating and five more have a Hold rating. At a share price of around $17.30, the upside potential based on a median price target of $36.00 is 108.1%. At the high target of $63.00, the upside potential is 264.2%.
Analysts expect Rivian to report fourth-quarter sales of $729.47 million, up 36.1% sequentially, as well as up from $54 million in the year-ago quarter. The company is expected to post an adjusted loss per share of $1.95, compared to a prior-quarter loss of $1.57 and a year-ago loss per share of $2.43. For the full 2022 fiscal year, analysts are forecasting an adjusted loss per share of $6.78, compared to a prior-year loss of $14.78 per share. Sales are forecast to reach $1.72 billion, up more than 3,000%.
Rivian is not expected to post a profit in 2022, 2023 or 2024. The enterprise value to sales multiple is expected to be 2.6 in 2022. Based on average estimated sales of $5.06 billion and $10.57 billion for 2023 and 2024, respectively, the multiple is 0.5 for 2023 and 0.4 for 2024. The stock’s 52-week range is $15.28 to $68.15. Rivian does not pay a dividend, and total shareholder return for the last year was negative 72.81%.
Originally published at 24/7 Wall St.
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