I am recommending purchase of PC and printing giant HP Inc (HPQ). We had success here recently, and as long as the PC industry is here to stay, this company will remain a major player despite a fall from $40 since April. Yes, PC sales are coming down from their pandemic peak, but I think the bad news is overdone at this point.

Admittedly, earnings targets have dropped to reflect what could become a 9% decline in the coming year, but here at barely a 7X forward multiple HPQ seems to be discounting  much more intense deterioration. I think that’s unlikely. And in that light, the entry is once again open on a stock pushed back to pre-pandemic levels.

Buy HPQ under $26.50. My target is $32. Don’t forget, the 3.85% dividend yield will help this stock attract more defensive income-oriented investors while we wait for it to pay off.