HPQ - Why HP Stock Soared and Nearly Hit an All-Time High Today
2024-05-30 16:44:00 ET
It's been lost in the shadows of flashier computing companies lately, but HP (NYSE: HPQ) is finally enjoying some time in the sun. The company reported financial results for its fiscal second quarter of 2024 after the market closed yesterday. And investors bid the stock higher today, with shares rising as much as 20% around midday, pushing the stock to within striking distance of its all-time high.
I wouldn't necessarily call Q2 a blowout success for HP. But it did show important improvements where the company needed it most. For starters, the bulk of its business is in personal computers (PCs), and PC sales have been sliding for a couple of years now. In Q2, this finally turned around, with PC sales increasing 3% year over year.
Here's another thing: Some investors have been concerned about HP's balance sheet, considering it had a net-debt position -- more debt than cash. But the company has made progress over the last year. It's gone from a net-debt position of $8.8 billion last year to a net-debt position of $7.2 billion this year. Debt is down, and cash is up.
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Why HP Stock Soared and Nearly Hit an All-Time High Today