Hewlett Packard (HPQ) Stock to Buy Now | FAST Graphs

HPQ - stock to buy now
After Hewlett Packard (HPQ) spun off Hewlett Packard Enterprises (HPE) the company unleashed its growth potential. Prior to the spinoff the original Hewlett Packard was experiencing very sluggish growth. Consequently, unwinding the company was able to accelerate the growth of both Hewlett Packard Enterprises and to even a greater extent HP Inc. Consequently, I believe that the market is punishing both companies with valuations that are significantly below the intrinsic value of either company.

Of the two, I prefer HP Inc. (HPQ) as the better investment for long-term total return and the stock to buy now. Hewlett Packard Enterprises (HPE) is interesting for current high yield. On the other hand, HP Inc. has better dividend coverage and dividend growth despite the slightly lower current yield.

FAST Fundamental Analysis

1. Earnings Growth
2. Dividend Growth Trend (If Any)
3. Reasonable Return Expectations
4. Investment Grade Credit Rating (BBB- or better)
5. Valuation
6. Free Cash Flow ＞Dividend
7. Cash Flow from Operations Growth Trend (3-5 Years Minimum)
8. Share Buybacks (Valuation Based)
9. Cash Flow from Operations (CFO) – Higher than Net Income
10. Sales Growth Trend (3-5 Years Minimum)
11. Net Income Growth Trend (3-5 Years Minimum)
12. Debt to Equity Ratio – 1 to 1 (Industry Norms)
13. Gross Margin versus Net Margin (Industry Norms)
14. Asset Turnover (Sales/Assets)
15. Return on Assets ＞10% or Better
16. Return on Equity ＞15% or Better
17. Operating Earnings Margin (EBIT/Sales)

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