HP’s earnings are coming out
All attention to the HP’s Q3 earnings report on August 27 at 23:30 MT time. Are you ready?
What happened?
The company’s performance has been really awesome during 2020. Stocks have managed to rise by 28 during summer so far. In fact, they got a boost from the tech stocks’ boom amid the coronavirus. No wonder that the demand for HP’s products and services surged amid the stay-at-home regime as people were forced to work remotely. According to Gartner, HP Inc. was the second largest PC seller in the second quarter of 2020. That is why its earnings report for the second quarter showed a growth. In addition, it raised its dividend payouts by 10% since the last year. In a nutshell, the overall picture is quite optimistic for the PC maker. Let’s discuss what predictions analysts have.
Forecasts
Wall Street brokers recommend to hold HP shares. They set a target price of $18.06, which is slightly less the current stock price. Deutsche Bank has the same target price and advises to hold HP shares. Unlike them, analysts from JP Morgan have more optimistic prospects and have established the price of $21. Bloomberg foresees a decline of HP’s year-over-year revenue in the third quarter, but a growth on the quarter-over-quarter bias.
What does it mean?
The market is on the side of stocks these days, as vaccine hopes and improved US-China relationships encourages investors. Moreover, investors are ready for the slump of HP’s revenues. Therefore, if actual numbers come out better than expected, it will drive the price upward more than usually. Otherwise, if they come out less than the forecasts, the HP’s price will dip down.
Technical tips
HP has been climbing up slowly, but confidently. If it breaks through the 200-day moving average of $18.40, it will open doors towards the high of August 10 at $19.00. In the opposite scenario, if it falls below the key support of $18.00, it may plummet even deeper to the low of July 21 at $17.50.
