Tech Stocks to Buy: HP (HPQ)
Forward P/E Ratio: 11
YTD Performance: +26.8%
Despite closing at a yearly high, HP Inc (NYSE:HPQ) is still highly undervalued. Markets value the stock at at 11.35 times future earnings, but ignore the stabilization in PC shipments.
Shipments for PC grew by 0.6% — the first time PC shipments have grown in five years. HP led the market by shipping 13.1 million units in the first quarter. And markets do not realize the rebound in PC shipment may continue.
The smartphone market is saturated, while tablet demand is falling. Even Apple is facing falling demand for its iPads. The CPU chip refresh from Intel Corporation (NASDAQ:INTC) and Advanced Micro Devices, Inc. (NASDAQ:AMD) may drive upgrades from consumers and businesses.
With HP as one of the few suppliers of ready-made PCs, the stock has further upside ahead as the rebound in the PC market unfolds.
As of this writing, Chris Lau did not hold a position in any of the aforementioned securities.