HP Inc., #HPQ [NYSE]
Technologies, Computer systems, USА

Financial performance of the company:

Index – S&P 500;
Beta – 1.66;
Capitalization – 20.20 В;
Return on asset - 4.40%;
Income - 4.55 B;
Average volume – 17.65 М;
P/E - 5.29;
ATR – 0.41.


Analytical review:

  • The company ranks the second on capitalization in the sector of “computer systems” among the issuers traded in the American stock market.
  • On 3d of March the company reported for Q1 of the fiscal year 2016. The price of shares has grown over 13%. The performance of the company was better than expected. However, compared with the results in Q1 2015 the revenue of the company fell by 3% from 13.2 billion USD due to strong USD and economic problems in China and Brazil.
  • It should be noted that the company’s revenue has been rising by 4% from year to year due to the stable exchange rate of the national currency. The executives of the company believe that in the fiscal year 2016 financial performance of the company will go up.
  • The company’s management plans to diversify business and increase dividends. The main sphere of investing is hi-tech companies.
  • In the fiscal year 2016 the company plans to repurchase shares and increase payment of dividends. HP Inc. has launched the program to cut costs. Within a year the company plans to cut 1200 people, which will help reduce expenses by 300 million USD per year.

Summary:

  • Despite pressure from strong USD, economic problems in China and Brazil, company’s revenue is constantly growing due to stable rate of the national currency. The company invests significant funds to maintain market share and diversify business activity. Successful accomplishment of the business projects will increase share of the company in the sector of “computer systems”.
  • It is likely that in the near future company’s quotes will go up.

Trading tips for CFD of HP Inc.

Medium-term trading: the moment the issuer has broken resistance level of 11.40 USD. If the price maintains at the gap of 11.00-11.40 USD and in case of the respective confirmation (such as pattern Price Action), we recommend to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed at the level of 11.10 USD. Take profit can be placed in parts at the levels of 12.00 USD, 12.70 USD and 13.50 USD with the use of trailing stop.


Analytical review of the stocks of HP Inc.

Short-term trading: on the chart with the timeframe 15M the issuer has broken the local resistance level of 11.55 USD. After breaking out and consolidating the levels of 11.40-11.55 USD in case of the respective confirmation (such as pattern Price Action), we recommend to open long positions. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 11.90 USD, 12.30 USD and 12.70 USD with the use of trailing stop.


Analytical review of the stocks of HP Inc.




The material published on this page is produced by LiteForex and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.



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