3 Reasons Now's Not the Time to Buy HP Stock
Shares of personal computer and printer company HP (NYSE: HPQ) have more than doubled over the course of the past 12 months, recently reaching a two-decade high. Not bad.
The rally reflects a modest rebound of the personal computer market before COVID-19 took hold, followed by an acceleration of that recovery spurred by the pandemic itself. For the three-month stretch ending in March, technology market research outfit IDC says shipments of PCs grew 55% year-over-year. Gartner pegs the figure closer to 32%, using a slightly different criteria for what constitutes a personal computer. IDC and another market research company called Canalys agree that personal computer sales will see net average growth through 2025. It all certainly seems to bode well for HP's business.
Three things are largely being obscured by all the bullish rhetoric, however, that are apt to work against HP shares sooner rather than later. If you were planning on getting out in the foreseeable future, maybe now's the time. And if you were thinking about getting in, you may want to hold off.
Source Fool.com