Should You Think About Buying HP Inc. (NYSE:HPQ) Now?

Today we're going to take a look at the well-established HP Inc. (NYSE:HPQ). The company's stock saw a decent share price growth of 15% on the NYSE over the last few months. The company is inching closer to its yearly highs following the recent share price climb. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s examine HP’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

View our latest analysis for HP

Is HP Still Cheap?

Good news, investors! HP is still a bargain right now. Our valuation model shows that the intrinsic value for the stock is $59.97, but it is currently trading at US$36.72 on the share market, meaning that there is still an opportunity to buy now. However, given that HP’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

What does the future of HP look like?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. However, with a relatively muted profit growth of 5.1% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for HP, at least in the short term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since HPQ is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on HPQ for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy HPQ. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. Every company has risks, and we've spotted 3 warning signs for HP (of which 1 makes us a bit uncomfortable!) you should know about.

If you are no longer interested in HP, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.