HP
PC and printer maker HP Inc. (NYSE: HPQ) has added about 7.9% to its share price over the past 12 months. Since posting a 52-week high in early April, however, the shares have dropped by around 20% due largely to the tech stock implosion and the weakening demand for new PCs. Share buybacks totaling $2.5 billion over the previous two quarters have helped boost the share price, and the company’s CEO has promised to raise that to a total of $4 billion over the final two quarters of HP’s fiscal year.
Analysts are cautious on the stock. Of 18 brokerages covering the company, nine rate the stock at Hold while just three have a Buy rating. Another four consider the stock a Strong Sell. At a share price of around $31.40, the upside potential based on a median price target of $36.00 is 14.6%. At the high price target of $50.00, the upside potential is 59.2%.
Revenue in the third quarter of fiscal 2022 is forecast to come in at $15.63 billion, down 5.2% sequentially and 2.5% lower year over year. Adjusted EPS are forecast at $1.03, down 4.7% sequentially but up 3% year over year. For the full fiscal year ending in October, analysts currently forecast EPS of $4.33, up 12.8%, on sales of $65.31 billion, up 2.9%.
HP stock trades at 7.3 times expected 2022 EPS, 7.2 times estimated 2023 earnings of $4.33 and 7.1 times estimated 2024 earnings of $4.44 per share. The stock’s 52-week range is $26.11 to $41.47. HP pays an annual dividend of $1.00 (yield of 2.99%). Total shareholder return for the past year is 10.8%.
HPE
Enterprise-level hardware and software maker Hewlett Packard Enterprise Co. (NYSE: HPE) has lost about 9% from its share price over the past 12 months. From a high in early February (up about 18.6%) to a low in early July (down about 12.4%), the shares took some recent knocks following disappointing earnings from other enterprise hardware makers and a weaker demand outlook for the rest of the year. HPE has not raised its dividend since December 2019.
Analyst sentiment is solidly neutral on the stock, with 16 of 25 brokerages having a Hold and another seven with Buy or Strong Buy ratings. At a share price of around $13.80, the upside potential based on a median price target of $16.00 is 15.9%. At the high target of $20.00, the upside potential is about 45%.
For the company’s third quarter of fiscal 2022, analysts expect to see revenue of $6.97 billion, up 3.9% sequentially and by 1.0% year over year. Adjusted EPS are forecast at $0.48, up 9% sequentially and a penny better than the year-ago number. For the full fiscal year ending in October, analysts are looking for adjusted EPS of $2.02, up 3%, on sales of $28.21 billion, up 1.6%.
The stock trades at 6.3 times expected 2022 EPS, 6.1 times estimated 2023 earnings of $2.27 and 6.0 times estimated 2024 earnings of $2.30 per share. The stock’s 52-week range is $12.40 to $17.76, and the company pays an annual dividend of $0.48. Total shareholder return over the past year is negative 6.1%.
Originally posted at 24/7 Wall St.
Sponsored: Find a Qualified Financial Advisor
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
