2024-04-26 13:32:44 ET
Summary
- HPQ stock is currently trading at a forward P/E ratio of 8.2x only.
- Such a P/E can certainly attract value-oriented investors.
- However, the more important factor in my mind is that its current contraction cycle may be ending, judging by its revenue trends and changes in its inventory.
HP stock is trading at 8.2x FWD P/E
HP Inc. ( HPQ ) is currently trading at single-digit P/E (8.2x on an FWD basis, as seen in the chart below). More specifically, consensus EPS estimates for HPQ stock points and EPS of $3.43 for the fiscal year 2024. Looking further out, analysts expect a moderate yet steady growth curve ahead. With such expected growth, the forward P/E ratio is expected to decline further. For example, the forward P/E ratio for fiscal year 2026 would be 7.43x only....
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HP Inc.: Buy Cyclical Stocks Near Cyclical Lows