Validea's Leading IT Stocks According to Joel Greenblatt - 8/18/2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 18 2025
0mins
Should l Buy HPQ?
Source: NASDAQ.COM
Top Rated IT Stocks: Validea's Earnings Yield Investor model highlights HP Inc., Western Digital Corp., MicroStrategy Inc., Cognizant Technology Solutions Corp., and Leidos Holdings Inc. as top-rated stocks based on Joel Greenblatt's investment strategy.
HP Inc. Overview: HP Inc. received a 100% rating, indicating strong interest due to its fundamentals in personal computing and printing solutions across various segments.
Western Digital Corp. Overview: With a 90% rating, Western Digital specializes in data storage devices and solutions, catering to diverse markets including cloud and consumer sectors.
MicroStrategy and Cognizant Ratings: Both MicroStrategy and Cognizant Technology Solutions scored 80%, focusing on software development and technology services, with MicroStrategy notably investing heavily in Bitcoin.
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Analyst Views on HPQ
Wall Street analysts forecast HPQ stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for HPQ is 25.30 USD with a low forecast of 20.00 USD and a high forecast of 30.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
1 Buy
10 Hold
3 Sell
Hold
Current: 19.000
Low
20.00
Averages
25.30
High
30.00
Current: 19.000
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.
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- Conference Call Announcement: HP Inc. will hold a conference call on February 24, 2026, at 5:00 PM ET to review its financial results for the first fiscal quarter ending January 31, 2026, which is expected to provide key financial metrics and future outlook.
- Webcast Availability: The call will be available via live audio webcast on HP's investor website at www.hp.com/investor/2026Q1Webcast, ensuring transparency and enhancing engagement with investors.
- Replay Service: A replay of the audio webcast will be available shortly after the call on the same website and will remain accessible for approximately one year, allowing investors who cannot attend live to access the information, thereby improving information accessibility.
- About HP Inc.: HP Inc. is a global technology leader operating in over 170 countries, providing a wide range of innovative and sustainable devices and services for personal computing, printing, 3D printing, and more, dedicated to helping people bring their ideas to life and connect to what matters most.
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- Market Share Decline: Analysts noted that PayPal's branded checkout growth slowed to just 1%, a four-point drop year-on-year, suggesting a weakening competitive position that necessitates increased investment in consumer loyalty programs and merchant incentives.
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- Leadership Challenges: Despite the board's call for greater discipline and faster execution, Marcus expressed skepticism about the new leadership's ability to navigate the fintech landscape, noting that their background may not align with the needs of a payments company.
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- Market Value Erosion: Following the stock's sharp decline, PayPal lost nearly $10 billion in market value, now standing at approximately $39 billion, reflecting deep investor concerns regarding the company's future, particularly in light of the leadership change.
- Analyst Target Cuts: Bank of America slashed its price target for PayPal from $68 to $48, asserting that “most of the damage is done,” and cautioned that the stock is unlikely to recover until new leadership demonstrates tangible progress.
- Investor Sentiment Shift: While retail sentiment on PayPal improved from “extremely bearish” to “extremely bullish” over the past month, analysts remain cautious about the outlook for 2026, citing sluggish branded online checkout trends and increased investment needs as factors contributing to another transition year.
See More
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- Disappointing Earnings Report: PayPal's Q4 performance failed to impress Wall Street, as growth in its core Branded Checkout slowed to just 1%, down from 5%-6% in previous quarters, suggesting a loss of competitive ground to rivals like Apple Pay and Google Pay, potentially leading to further market share erosion.
- Revised Outlook: The company lowered its fiscal 2026 earnings forecast to a range of single-digit decline to slightly positive and withdrew its 2027 outlook entirely, reflecting a cautious stance on future performance that may affect investor confidence.
- Interim CEO's Optimistic View: Interim CEO Miller expressed optimism about the incoming CEO Lores, believing he will bring additional operational focus and discipline, suggesting that despite current challenges, PayPal has the potential for growth in 2026 and beyond.
See More
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- Conference Call Announcement: HP Inc. will hold a conference call on February 24, 2026, at 5:00 PM ET to review its financial results for the first fiscal quarter ending January 31, 2026, which is expected to provide key financial metrics and future outlook.
- Webcast Availability: The call will be available via live audio webcast on HP's investor website at www.hp.com/investor/2026Q1Webcast, ensuring transparency and enhancing engagement with investors.
- Replay Service: A replay of the audio webcast will be available shortly after the call on the same website and will remain accessible for approximately one year, allowing investors who cannot attend live to access the information, thereby improving information accessibility.
- About HP Inc.: HP Inc. is a global technology leader operating in over 170 countries, providing a wide range of innovative and sustainable devices and services for personal computing, printing, 3D printing, and more, dedicated to helping people bring their ideas to life and connect to what matters most.
See More
PayPal Q3 Earnings Miss and CEO Change Prompt Analyst Downgrades
- Earnings Decline: PayPal's Q3 earnings report revealed that revenue fell short of market expectations, leading to execution challenges that have negatively impacted investor confidence and caused further declines in share price.
- CEO Change: In response to these execution issues, PayPal announced a change in its CEO, aiming to revitalize the company's strategic direction and improve performance, which may affect future leadership stability.
- Analyst Downgrades: Several analyst firms downgraded PayPal's ratings and lowered price targets, reflecting concerns about the company's future growth potential, which could lead to further investor withdrawals.
- Stock Price Reaction: Following the disappointing earnings and management changes, PayPal's stock price has continued to decline, indicating a pessimistic sentiment in the market regarding the company's short-term outlook, potentially affecting its position in the highly competitive payments industry.
See More
PayPal Reports Q4 Earnings Miss, Shares Decline
- Earnings Miss: PayPal's Q4 earnings came in at $1.23 per share, falling short of the $1.29 expected by analysts, with only a 3% growth compared to the projected 7%-10%, indicating significant competitive pressure.
- Market Share Decline: Analysts noted that PayPal's branded checkout growth slowed to just 1%, a four-point drop year-on-year, suggesting a weakening competitive position that necessitates increased investment in consumer loyalty programs and merchant incentives.
- CEO Change Impact: The announcement of CEO Alex Chriss's departure, with CFO/COO Jamie Miller stepping in as interim CEO, raises concerns about the company's strategic direction amid execution challenges that may hinder future performance.
- Bleak Outlook: PayPal's disappointing outlook for fiscal 2026, coupled with expectations of declining transaction margins, highlights the company's struggles to adapt to changing market dynamics and consumer behaviors.
See More
Former PayPal President Critiques Company Culture
- Critique of Financial Optimization: Former PayPal President David Marcus publicly criticized the company's shift from product-led to financially-led leadership, claiming this change has hollowed out the company's innovative spirit and weakened its market competitiveness.
- BNPL Feature Failure: Marcus highlighted PayPal's failure to transform its Buy Now, Pay Later service into a core consumer relationship, allowing competitors to capture market share, which directly contributed to a mere 1% growth in branded checkout performance.
- Leadership Challenges: Despite the board's call for greater discipline and faster execution, Marcus expressed skepticism about the new leadership's ability to navigate the fintech landscape, noting that their background may not align with the needs of a payments company.
- Significant Stock Decline: In 2026, PayPal's stock has dropped by 28.57%, with a 37.86% decline over the past six months and a staggering 53.41% drop over the year, indicating ongoing weakness in the market and declining investor confidence.
See More
PayPal Appoints New CEO Amidst Market Turmoil
- CEO Change Impact: PayPal has appointed Enrique Lores, CEO of HP, to succeed Alex Chriss, aiming to reverse the company's declining fortunes; however, the market reacted sharply, with shares plummeting over 20% on Tuesday, marking the worst single-day decline in nearly a decade.
- Market Value Erosion: Following the stock's sharp decline, PayPal lost nearly $10 billion in market value, now standing at approximately $39 billion, reflecting deep investor concerns regarding the company's future, particularly in light of the leadership change.
- Analyst Target Cuts: Bank of America slashed its price target for PayPal from $68 to $48, asserting that “most of the damage is done,” and cautioned that the stock is unlikely to recover until new leadership demonstrates tangible progress.
- Investor Sentiment Shift: While retail sentiment on PayPal improved from “extremely bearish” to “extremely bullish” over the past month, analysts remain cautious about the outlook for 2026, citing sluggish branded online checkout trends and increased investment needs as factors contributing to another transition year.
See More
PayPal Stock Plummets 20% Amid CEO Shake-Up and Weak Earnings Outlook
- Surprise Leadership Change: PayPal's CEO Alex Chriss unexpectedly departed after less than a year, with the board expressing dissatisfaction with the company's execution, indicating a lack of confidence in recent turnaround efforts that could impact future strategic direction.
- Disappointing Earnings Report: PayPal's Q4 performance failed to impress Wall Street, as growth in its core Branded Checkout slowed to just 1%, down from 5%-6% in previous quarters, suggesting a loss of competitive ground to rivals like Apple Pay and Google Pay, potentially leading to further market share erosion.
- Revised Outlook: The company lowered its fiscal 2026 earnings forecast to a range of single-digit decline to slightly positive and withdrew its 2027 outlook entirely, reflecting a cautious stance on future performance that may affect investor confidence.
- Interim CEO's Optimistic View: Interim CEO Miller expressed optimism about the incoming CEO Lores, believing he will bring additional operational focus and discipline, suggesting that despite current challenges, PayPal has the potential for growth in 2026 and beyond.
See More
