HP Is Still Incredibly Cheap

We have recommended Hewlett-Packard (HPQ) a number of times this year. Our thesis has been that, while HP would not return to being a robust growth company, its stock price has been erroneously suggesting that the company was heading for the scrap heap of industry. In fact, management has been doing a very good job turning the business around -- and the company should ultimately be a mid-single-digit revenue grower with high-single-digit earnings growth.

So, at 6.9x earnings, we've considered the stock way too cheap, and have believed that it offers a compelling reward vs. risk profile. Specifically, we projected a three-to-nine-month target price in the low $30s....299 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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