Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, November 27, 2015

Article Excerpt

HP INC., $12.61, New York symbol HPQ, took its current form on November 1, 2015, when the old Hewlett-Packard Co. split into two firms. HP Inc. focuses on personal computers and printers, while Hewlett-Packard Enterprise (see below) sells computing services and products, like servers and analytics software, to businesses and governments. Hewlett-Packard shareholders received one share of HP Inc. and one share of Hewlett-Packard Enterprise for each old share they held. Investors aren’t liable for capital gains taxes until they sell their new shares. The new HP Inc.’s stock fell 11% this week in response to a weaker-than-expected outlook. Without restructuring costs, including severance, the company expects to earn $1.59 to $1.69 a share in its 2016 fiscal year, which ends October 31, 2016. That’s less than the consensus forecast of $1.77. The stock trades at a low 7.7 times the midpoint of that range. That’s because demand for printers and ink continues to slow as more people share photos on social media…