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Hewlett-Packard Shares Look Cheap Despite Big Rebound: Barron's


Ron Burgundy
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A Hewlett-Packard logo is seen at the company's Executive Briefing Center in Palo AltoShares of Hewlett-Packard Co are poised to rise by 20 percent over the next year, helped by an expected pickup in information-technology spending, according to an article in the April 7 edition of Barron's. HP's stock has risen 46 percent in the past year, but with a valuation of 8.7 times projected earnings over the next four quarters, it still trades at a 44 percent discount to the market, the financial newspaper said. While spending on information technology has been weak in recent years, buyers worldwide are on track to spend 3.2 percent more this year, research group Gartner said last week. Currently, HP shares, which closed at $32.64 on the New York Stock Exchange on Friday, go for the same price they did 15 years ago, as the Internet and smartphones have made things like pricey personal computers and printers less of a necessity.




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