HP missed earnings estimates and is down more than 4% in the premarket. I think the PC and printer segment will limp along for a while before demand stabilizes again. So if the share price continues to fall, I have a new candidate for the portfolio. I'll probably wait one more quarter to get more insight on demand, but as I write, I don't expect improvement anytime soon, which could pull the price even lower.
HP Inc.
HPQCapital Structure
Market Cap
35.7B
Enterpr. Val.
43.8B
Valuation
P/E
12.3
P/S
0.7
Dividends
Yield
3.0%
Payout
35.8%
Global PC shipments fell nearly 30% between January and March to levels below pre-pandemic levels, according to data from research firm IDC.
Sales in HP's personal systems segment fell 29% in the quarter, while the company's printing segment saw a 5% decline.
Great, thanks for the recap.
I have the same approach as you. If the share price continues to fall, I will also include this stock in my portfolio.
hmm
HP has a super rich history. Warren Buffett recently included it in his portfolio. It may not be a bad deal and if it falls, it will offer a super buying opportunity.
I've got a pretty nice position there already, but I could easily get some more to dilute the price. Maybe even Buffett will throw in something if it's anywhere near his purchase price;)
Are they somehow engaging about AI? It could be a shame for them here. PCs and printers don't just get bought, so it may take time for demand to rise to pre-Covid levels.