HP Inc. (HPQ) is trading close to my $27.50 target, and I am recommending the sale of this stock.
As I have discussed recently, I am concerned about the difficult comparisons the company faces in personal computers in the second half of the year. This makes the reliability of estimates in the October 2021 and October 2022 fiscal years uncertain.
While the stock is still cheap relative to the market, long-term stagnation proceeding decline in the printing business will prevent the company from trading close to a market price-to-earnings (P/E) ratio. Sell HPQ and realize profits in excess of 50%.
If you are an Inner Circle subscriber who is following the Model Portfolio, sell HPQ.