This Warren Buffett Stock Is a Strong Sell
Shares of HP Inc. (NYSE: HPQ), one of the biggest players in the PC and printer markets, look tantalizingly cheap. Warren Buffett's Berkshire Hathaway owned more than 12% of the company as of June 30, with a stake worth about $3.5 billion. Based on the average analyst estimate, HP stock trades for about 9 times forward earnings.
There are some good reasons why HP stock trades at such a beaten-down valuation. For one, neither of its core businesses looks particularly appealing from a growth perspective. Prior to the pandemic, the PC market was stuck in a slow decline. While the pandemic reversed this trend temporarily, there's little reason to believe PCs will be able to drive significant long-term growth for HP.
HP's personal systems segment suffered an 11.3% year-over-year revenue decline in the fiscal third quarter, which ended on July 31. HP likely gained market share -- global shipments during the calendar second quarter dropped 13.4%, according to IDC. HP shipped 3% more units than during the prior-year period, but average pricing tumbled by a double-digit percentage.
Source Fool.com
HP Inc. Stock
We see a rather positive sentiment for HP Inc. with 14 Buy predictions and 2 Sell predictions.
With a target price of 32 € there is a slightly positive potential of 4.9% for HP Inc. compared to the current price of 30.51 €.
