How HP Inc. Stock Gained 15% in February

What happened

Shares of HP Inc. (NYSE: HPQ  ) rose 15.4% in February 2017, according to data from S&P Global Market Intelligence.

So what

The big jump came late in the month. HP reported first-quarter 2017 results on Feb. 22, leaving Wall Street's estimates far behind despite modest revenue growth and flat earnings. Investors chose to ignore a gloomy slate of second-quarter guidance targets, and share prices soared as much as 10% higher the next day.

The HP EliteBook x360 laptop cum tablet.

Is it a tablet? Is it a laptop? The HP EliteBook x360 is actually both. Image source: HP.

Now what

The consumer-friendly half of the old Hewlett-Packard empire sure fared better than its business computing cousin in this round of business updates. Hewlett-Packard Enterprise (NYSE: HPE  ) reported its own results later that week -- and that stock promptly fell 9.4% on the news.

The biggest surprise in these diverging paths is that HP Inc.'s strong results did not come from its semi-corporate printing division. Instead, they rested on solid sales of consumer-grade PC systems. In particular, notebook sales are booming these days, even if the PC market was supposed to have died years ago.

That being said, both HP Inc. and HP Enterprise have rewarded their investors generously since going their separate ways, with both stocks rising more than 45% over the last year. Still, they trade at very reasonable price-to-earnings ratios and could easily move even higher. The two halves of Hewlett-Packard may indeed be greater separately than the sum of the parts ever were together.

10 stocks we like better than HP
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and HP wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of February 6, 2017

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 4006977, ~/Articles/ArticleHandler.aspx, 3/25/2017 1:56:07 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 4 hours ago Sponsored by:
Change down DOW 20596.7 -59.9 -0.3%
Change down S&P 500 2344.0 -2.0 -0.1%
Change up NASD 5828.7 11.0 0.2%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

3/24/2017 4:03 PM
HPQ $17.23 Up +0.02 +0.12%
HP CAPS Rating: ***
HPE $22.77 Down -0.03 -0.13%
Hewlett Packard En… CAPS Rating: ****