HP, Inc. Is A Marginal Investment

Today I'm reviewing a Large-Cap California-based computer systems firm. The company's name is HP, Inc., Its trading ticker symbol is HPQ.  

HP, Inc. provides products, technologies, software, solutions and services to individual consumers, small- and medium-sized businesses including customers in the government, health and education sectors worldwide.

It provides its products and services to community banks, regional banks, and multi-bank holding companies, as well as to various other business enterprises. 

It operates through Personal Systems and Printing segments. The Personal Systems segment offers commercial personal computers (PCs), consumer PCs, workstations, thin clients, commercial tablets and mobility devices, retail point-of-sale systems, displays and other related accessories, software, support, and services. 

The Printing segment provides consumer and commercial printer hardware, supplies, media, solutions, and services, as well as scanning devices; and LaserJet and enterprise, inkjet and printing, graphics, and 3D printing solutions. 

The company was formerly known as Hewlett-Packard Company and changed its name to HP Inc. in October 2015. HP Inc. was founded in 1939 and is headquartered in Palo Alto, California.

I use three key data points gauge the value of any dividend equity or fund like HP, Inc. (HPQ): 

(1) Price

(2) Dividends

(3) Returns

After those three, four more keys will finally unlock an equity or fund in which to invest. 

No matter what, it's the first three primary traits that best tell whether a company has made, is making, and will make money. 

HPQ Price

HPQ's price was $22.30 per share at yesterday's market close.A year ago its price was $22.17 for a gain of $0.13 per share in the past year.  

Assuming HPQ's price will continue to trade in the range of $22.00 to $24.00 next year, its price could grow another $0.13 from $22.30 to $22.47 by mid- May, 2019. 

HPQ Dividends

HPQ's most recently declared quarterly dividend was $0.14 per share declaredMay 14, and payable July 5.That $0.14 Q dividend equates to an annual payout of $0.56for 2018 and yields 2.5% at yesterday's $22.30 stock price.

Gains For HPQ?

The $0.13 estimated year over year price gain plus an anticipated dividend of$0.56 makes a projected gross annual gain of $0.69 per share, which will be reduced by the costs to trade these shares.  

$1,000.00 invested today at the $22.30 price buys 45 shares. 

A $10 broker fee paid half at purchase and half at sale subtracts about $0.22 per share.

Taking that $0.22 brokerage cost out of the estimated $0.69 gross gain per share leaves a net gain of $0.47 X 45 shares = $21.15 or a 2% potential net gain on a $1,003.50 investment.

Therefore, HP, Inc. (whose ticker symbol is HPQ), now shows a possible 2% net gain including a 2.5% dividend yield. 

21 analysts cover this stock. 

8 say "buy it"; 2 say "it'll outperform"; 11 say "hold."

Y Charts says "avoid" HPQ for an overall "Y" rating.However, Y Charts shows "Good" for a Value score of 9 out of ten points. But YCharts also ranks HPQ weak with a 3 out of 10possible Fundamental points, and shows aHistoric Valuation score as 16.63% undervalued, based on a $26.74 historic value.

You could look at all those numbers like this: HP, Inc, (HPQ) has made money, is making money, and could net a 2% net gain next year including2.5% dividend yield. It could be more, it could be less.

Those forward-looking numbers were conjecture based on past year performance. Actual results remain to be seen. They could turn out to be far higher or lower. More study is required for you to determine if HP, Inc. (HPQ)  is worth your time and money.

Disclaimer: 

This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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