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.
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Disclosure: Long HPQ
Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation.