Is HP Stock a Buy?
In the FAANG-dominated investing landscape, it's easy to forget that HP (NYSE: HPQ) was the original Silicon Valley stock. The company's roots date back to 1939, when its namesake founders, Bill Hewlett and Dave Packard, launched the company in a Palo Alto garage. In recent years, shares of the "old tech" company continue to underperform the overall technology sector, gaining 17% in the last three years versus 95% for the greater Nasdaq 100 index.
Many value investors are wondering if there's an opportunity here due to the company's attractive valuations: HP currently trades at 9.5 times forward earnings estimates. Additionally, the company's 3% dividend yield is enticing in a depressed yield environment. However, long-term investors should understand the risks before they buy shares of the company.
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Source Fool.com
