Wednesday, April 6, 2011

Time to Buy Hewlett Packard (HPQ)?

With the energy sector and commodity companies attracting a lot of attention from investors recently, some companies in the tech sector have been trading at low valuations, offering what looks like a good time to invest, like with Hewlett Packard (NYSE:HPQ).

Earnings estimates for HPQ are a little over $5 a share in 2011 and $5.69 for 2012.

The shares have been trading in a range of $37.32 to $54.75 over the past 52 weeks. The 50 day moving average is $44.15 and the 200 day moving average is $43.05.

Because Hewlett Packard's shares have been under pressure recently and are trading below the 50 and 200 day moving averages, buying in stages for the purpose of taking advantage of expected dips would be a good strategy.

Hewlett Packard pays a dividend of 32 cents a year, which is equal to a .8 percent yield. Hewlett Packard recently announced a goal of $7 a share in earnings by 2012.

Hewlett Packard was trading at $41.18, gaining $0.89, or 2.21 percent, as of 2:07 PM EDT.

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