Canada markets open in 5 hours 2 minutes
  • S&P/TSX

    20,633.27
    -128.73 (-0.62%)
     
  • S&P 500

    4,538.43
    -38.67 (-0.84%)
     
  • DOW

    34,580.08
    -59.72 (-0.17%)
     
  • CAD/USD

    0.7814
    +0.0027 (+0.34%)
     
  • CRUDE OIL

    68.20
    +1.94 (+2.93%)
     
  • BTC-CAD

    61,708.68
    -1,264.48 (-2.01%)
     
  • CMC Crypto 200

    1,232.46
    -209.30 (-14.52%)
     
  • GOLD FUTURES

    1,781.10
    -0.90 (-0.05%)
     
  • RUSSELL 2000

    2,159.31
    -47.02 (-2.13%)
     
  • 10-Yr Bond

    1.3430
    0.0000 (0.00%)
     
  • NASDAQ futures

    15,802.75
    +85.00 (+0.54%)
     
  • VOLATILITY

    28.73
    +0.78 (+2.79%)
     
  • FTSE

    7,187.59
    +65.27 (+0.92%)
     
  • NIKKEI 225

    27,927.37
    -102.20 (-0.36%)
     
  • CAD/EUR

    0.6916
    +0.0038 (+0.55%)
     

Is HP (HPQ) Stock Undervalued Right Now?

  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is HP (HPQ). HPQ is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.

We also note that HPQ holds a PEG ratio of 0.86. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. HPQ's PEG compares to its industry's average PEG of 1.88. Over the last 12 months, HPQ's PEG has been as high as 4.30 and as low as 0.86, with a median of 1.22.

Finally, investors should note that HPQ has a P/CF ratio of 6.54. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. HPQ's current P/CF looks attractive when compared to its industry's average P/CF of 25.92. HPQ's P/CF has been as high as 11.14 and as low as 6.54, with a median of 8.39, all within the past year.

These are only a few of the key metrics included in HP's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, HPQ looks like an impressive value stock at the moment.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
HP Inc. (HPQ) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting