HP Shares Surge 15.3% Driven by AI Adoption and Earnings Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 36 minutes ago
0mins
Source: NASDAQ.COM
- Strong Price Rally: HP shares surged 15.3% in the last trading session to close at $25.24, with notable trading volume exceeding typical levels, indicating strong market confidence in the company's growth prospects.
- Business Growth Drivers: The momentum in HP's Personal Systems business is fueled by the Windows 11 refresh cycle and increasing adoption of AI PCs, which are driving share gains in premium categories and bolstering investor confidence.
- Optimistic Earnings Outlook: HP is expected to report quarterly earnings of $0.72 per share, reflecting a year-over-year increase of 1.4%, with revenues projected at $14.05 billion, up 6.3% from the previous year, showcasing the company's solid financial performance.
- Market Trend Monitoring: While HP's EPS estimates have remained unchanged over the past 30 days, the ongoing rise in stock price warrants attention to any shifts in earnings expectations to assess future price movements.
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Analyst Views on HPQ
Wall Street analysts forecast HPQ stock price to rise
14 Analyst Rating
1 Buy
10 Hold
3 Sell
Hold
Current: 21.900
Low
20.00
Averages
25.30
High
30.00
Current: 21.900
Low
20.00
Averages
25.30
High
30.00
About HPQ
HP Inc. is a global provider of sustainable devices, services and subscriptions for personal computing (PC), printing, three-dimensional (3D) printing, hybrid work, gaming and other related technologies. The Company's segments include Personal Systems, Printing and Corporate Investments. Its Personal Systems segment offers desktops, notebooks, and workstations, thin clients, retail point-of-sale (POS) systems, displays, hybrid systems, software, solutions including endpoint security and services. Its Printing segment provides consumer and commercial printer hardware, supplies, services and solutions. Printing is also focused on graphics and 3D printing and personalization in the commercial and industrial markets. Its Corporate Investments segment includes certain business incubation and investment projects. Its security solutions provide layered resiliency using features such as containment and isolation technology as well as artificial intelligence (AI) deep learning.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
HP Shares Surge 15.3% Driven by AI Adoption and Earnings Outlook
- Strong Price Rally: HP shares surged 15.3% in the last trading session to close at $25.24, with notable trading volume exceeding typical levels, indicating strong market confidence in the company's growth prospects.
- Business Growth Drivers: The momentum in HP's Personal Systems business is fueled by the Windows 11 refresh cycle and increasing adoption of AI PCs, which are driving share gains in premium categories and bolstering investor confidence.
- Optimistic Earnings Outlook: HP is expected to report quarterly earnings of $0.72 per share, reflecting a year-over-year increase of 1.4%, with revenues projected at $14.05 billion, up 6.3% from the previous year, showcasing the company's solid financial performance.
- Market Trend Monitoring: While HP's EPS estimates have remained unchanged over the past 30 days, the ongoing rise in stock price warrants attention to any shifts in earnings expectations to assess future price movements.
See More
Stock Market Shows Strength Ahead of Holiday Weekend
- Market Recovery: The S&P 500 index reached a record high above 7,500 in May after recovering from March lows, indicating strong market recovery, although it remains just below that record, reflecting optimistic investor sentiment.
- Declining Cash Holdings: A Bank of America Securities survey shows professional investors' cash levels dropped from 4.3% to 3.9%, nearing the 4.0% sell signal, indicating that investors are chasing the market rally but may soon face capital shortages.
- Increased Inflation Pressure: The upcoming personal consumption expenditures price index is expected to show core PCE rising to 3.4% year-over-year in April, up from 3.2% in March, potentially increasing pressure on the Federal Reserve to raise interest rates, which could affect market sentiment.
- Economic Data Impact: Next week will see several economic data releases and earnings reports from key tech companies that could significantly impact the markets, particularly consumer commentary from Costco and Dollar Tree, which may trigger market volatility.
See More
Skyworks and HP Options Trading Volume Surge
- Skyworks Options Volume: Skyworks Solutions Inc (SWKS) has seen an options trading volume of 44,293 contracts today, representing approximately 4.4 million shares, which accounts for 83.7% of its average daily trading volume of 5.3 million shares over the past month, indicating strong market interest in its future performance.
- High-Frequency Contracts: Within SWKS, the $80 strike call option has been particularly active, with 11,060 contracts traded today, equating to about 1.1 million shares, reflecting bullish investor sentiment regarding the stock's future prospects.
- HP Options Trading Dynamics: Concurrently, HP Inc (HPQ) has recorded an options trading volume of 110,897 contracts today, representing approximately 11.1 million shares, or 72.3% of its average daily trading volume of 15.3 million shares over the past month, showcasing significant market interest in HP.
- Key Contract Analysis: For HPQ, the $25 strike put option has also garnered attention, with 13,021 contracts traded today, equating to around 1.3 million shares, suggesting that investors are anticipating potential downside risks for the stock in the near future.
See More
Computer Manufacturers' Stocks Surge After Lenovo's Strong Report
- Lenovo's Performance Boost: Lenovo reported an 84% increase in AI-related revenue for Q4, leading to a nearly 20% surge in its stock price, which also propelled Dell and HP shares up over 15%, reflecting strong market demand and competitive positioning in AI technology.
- Estee Lauder's Stock Recovery: Estee Lauder's shares rose 10% despite ending merger talks with Puig, indicating robust market performance and a solid position in the cosmetics industry.
- Workday's Strong Results: Workday's stock jumped nearly 4% after posting better-than-expected earnings and raising its full-year margin outlook, showcasing its growth potential in finance and HR software.
- Merck's Drug Breakthrough: Merck's lung cancer treatment, developed in partnership with Kelun-Biotech, demonstrated a 65% reduction in tumor progression risk in a phase 3 study, resulting in a nearly 5% increase in stock price, reinforcing its competitive edge in oncology.
See More
Dell and HP Shares Surge Following Lenovo's Strong Earnings Report
- Lenovo's Strong Performance: Lenovo reported a 27% year-over-year revenue increase to $21.6 billion in Q4, with adjusted net income soaring 101%, reflecting a recovery in the PC market and strong demand for AI services, which drove Dell and HP shares up over 15% and 14%, respectively.
- Dell's Price Target Raised: Wells Fargo raised Dell's price target from $180 to $270, with analyst Aaron Rakers expecting Dell to continue benefiting from accelerating AI infrastructure demand, indicating strong market confidence in its future growth.
- Strong Stock Performance: Dell shares have surged 20% over the past five trading days and over 36% in the past month, while HP shares have increased by 19% in the same period, reflecting investor optimism about both companies' future earnings.
- Upcoming Earnings Reports: Dell is set to report its Q1 results on May 28, with consensus estimates of $2.96 earnings per share and $35.75 billion in revenue, while HP is expected to report on May 27 with estimates of $0.72 earnings per share and $14.07 billion in revenue.
See More
HP Declares Quarterly Dividend of $0.30 per Share
- Dividend Consistency: HP has declared a quarterly dividend of $0.30 per share for three consecutive quarters, demonstrating its stability and ability to provide returns in the current economic climate, which is expected to bolster investor confidence.
- Yield Attractiveness: The forward yield of 5.72% offers relative appeal in the current market, potentially attracting income-seeking investors, especially as large-cap stocks trade at discounted earnings multiples.
- Shareholder Assurance: The dividend will be payable on July 1, with a record date of June 10 and an ex-dividend date also on June 10, ensuring that existing shareholders receive a steady cash flow, further solidifying their trust in the company.
- Market Outlook: Despite growth challenges in its printing segment, HP's dividend policy and attractive valuation may provide some market support in a dynamic memory environment, particularly as large tech stocks gain attention.
See More
HP Shares Surge 15.3% Driven by AI Adoption and Earnings Outlook
- Strong Price Rally: HP shares surged 15.3% in the last trading session to close at $25.24, with notable trading volume exceeding typical levels, indicating strong market confidence in the company's growth prospects.
- Business Growth Drivers: The momentum in HP's Personal Systems business is fueled by the Windows 11 refresh cycle and increasing adoption of AI PCs, which are driving share gains in premium categories and bolstering investor confidence.
- Optimistic Earnings Outlook: HP is expected to report quarterly earnings of $0.72 per share, reflecting a year-over-year increase of 1.4%, with revenues projected at $14.05 billion, up 6.3% from the previous year, showcasing the company's solid financial performance.
- Market Trend Monitoring: While HP's EPS estimates have remained unchanged over the past 30 days, the ongoing rise in stock price warrants attention to any shifts in earnings expectations to assess future price movements.
See More
Stock Market Shows Strength Ahead of Holiday Weekend
- Market Recovery: The S&P 500 index reached a record high above 7,500 in May after recovering from March lows, indicating strong market recovery, although it remains just below that record, reflecting optimistic investor sentiment.
- Declining Cash Holdings: A Bank of America Securities survey shows professional investors' cash levels dropped from 4.3% to 3.9%, nearing the 4.0% sell signal, indicating that investors are chasing the market rally but may soon face capital shortages.
- Increased Inflation Pressure: The upcoming personal consumption expenditures price index is expected to show core PCE rising to 3.4% year-over-year in April, up from 3.2% in March, potentially increasing pressure on the Federal Reserve to raise interest rates, which could affect market sentiment.
- Economic Data Impact: Next week will see several economic data releases and earnings reports from key tech companies that could significantly impact the markets, particularly consumer commentary from Costco and Dollar Tree, which may trigger market volatility.
See More
Skyworks and HP Options Trading Volume Surge
- Skyworks Options Volume: Skyworks Solutions Inc (SWKS) has seen an options trading volume of 44,293 contracts today, representing approximately 4.4 million shares, which accounts for 83.7% of its average daily trading volume of 5.3 million shares over the past month, indicating strong market interest in its future performance.
- High-Frequency Contracts: Within SWKS, the $80 strike call option has been particularly active, with 11,060 contracts traded today, equating to about 1.1 million shares, reflecting bullish investor sentiment regarding the stock's future prospects.
- HP Options Trading Dynamics: Concurrently, HP Inc (HPQ) has recorded an options trading volume of 110,897 contracts today, representing approximately 11.1 million shares, or 72.3% of its average daily trading volume of 15.3 million shares over the past month, showcasing significant market interest in HP.
- Key Contract Analysis: For HPQ, the $25 strike put option has also garnered attention, with 13,021 contracts traded today, equating to around 1.3 million shares, suggesting that investors are anticipating potential downside risks for the stock in the near future.
See More
Computer Manufacturers' Stocks Surge After Lenovo's Strong Report
- Lenovo's Performance Boost: Lenovo reported an 84% increase in AI-related revenue for Q4, leading to a nearly 20% surge in its stock price, which also propelled Dell and HP shares up over 15%, reflecting strong market demand and competitive positioning in AI technology.
- Estee Lauder's Stock Recovery: Estee Lauder's shares rose 10% despite ending merger talks with Puig, indicating robust market performance and a solid position in the cosmetics industry.
- Workday's Strong Results: Workday's stock jumped nearly 4% after posting better-than-expected earnings and raising its full-year margin outlook, showcasing its growth potential in finance and HR software.
- Merck's Drug Breakthrough: Merck's lung cancer treatment, developed in partnership with Kelun-Biotech, demonstrated a 65% reduction in tumor progression risk in a phase 3 study, resulting in a nearly 5% increase in stock price, reinforcing its competitive edge in oncology.
See More
Dell and HP Shares Surge Following Lenovo's Strong Earnings Report
- Lenovo's Strong Performance: Lenovo reported a 27% year-over-year revenue increase to $21.6 billion in Q4, with adjusted net income soaring 101%, reflecting a recovery in the PC market and strong demand for AI services, which drove Dell and HP shares up over 15% and 14%, respectively.
- Dell's Price Target Raised: Wells Fargo raised Dell's price target from $180 to $270, with analyst Aaron Rakers expecting Dell to continue benefiting from accelerating AI infrastructure demand, indicating strong market confidence in its future growth.
- Strong Stock Performance: Dell shares have surged 20% over the past five trading days and over 36% in the past month, while HP shares have increased by 19% in the same period, reflecting investor optimism about both companies' future earnings.
- Upcoming Earnings Reports: Dell is set to report its Q1 results on May 28, with consensus estimates of $2.96 earnings per share and $35.75 billion in revenue, while HP is expected to report on May 27 with estimates of $0.72 earnings per share and $14.07 billion in revenue.
See More
HP Declares Quarterly Dividend of $0.30 per Share
- Dividend Consistency: HP has declared a quarterly dividend of $0.30 per share for three consecutive quarters, demonstrating its stability and ability to provide returns in the current economic climate, which is expected to bolster investor confidence.
- Yield Attractiveness: The forward yield of 5.72% offers relative appeal in the current market, potentially attracting income-seeking investors, especially as large-cap stocks trade at discounted earnings multiples.
- Shareholder Assurance: The dividend will be payable on July 1, with a record date of June 10 and an ex-dividend date also on June 10, ensuring that existing shareholders receive a steady cash flow, further solidifying their trust in the company.
- Market Outlook: Despite growth challenges in its printing segment, HP's dividend policy and attractive valuation may provide some market support in a dynamic memory environment, particularly as large tech stocks gain attention.
See More
