Hewlett-Packard Trading forecasts and signals

      Shares 29.08.2022 - 4.09.2022Dividends for the week of 08.29.2022 - 09.4.2022CompanyPricePaymentAnnual dividendCutoff DateLast dayMcDonald's (MCD)$256,95$1,382,15%01.0930.08Kellogg Company (K)$73,85$0,593,20%01.0930.08Realty Income (O)$69,91$0,24754,25%01.0930.08Pepsico (PEP)$175,04$1,152,63%02.0931.08Bank Of America (BAC)$34,03$0,222,59%02.0931.08Suncor Energy (SU)$34,31$0,475,48%02.0931.08Nike (NKE)$108,28$0,3051,13%06.0901.09Pioneer Natural Resources (PXD)$257,38$8,5713,32%06.0901.09 Corporate reporting season 29.08.2022 - 4.09.202229.08Heico (HEI), Catalent (CTLT)H World Group (HTHT), Joyy (YY)30.08HP (HPQ), Hewlett Packard Enterprise (HPE), Crowdstrike Holdings (CRWD),Best Buy Co. (BBY), Chewy (CHWY), Chargepoint Hldgs (CHPT), PVH (PVH)Baidu (BIDU)31.08Brown-Forman (BF.A, BF.B), Veeva Systems (VEEV), Mongodb (MDB),Okta (OKTA), Cooper Companies (COO), Pure Storage (PSTG), Sentinelone (S), Donaldson Company (DCI), Nutanix (NTNX), Greif (GEF)01.09Broadcom (AVGO), Lululemon Athletica (LULU), Hormel Foods (HRL),Campbell Soup (CPB), Toro Company (TTC), Ciena (CIEN), Smartsheet (SMAR),Science Applications (SAIC), Ollie's Outlet (OLLI), Signet Jewelers (SIG)Weibo (WB), Hello Group (MOMO) Macroeconomics and major events 29.08.2022 - 4.09.202230.08GermanyGermany Consumer Price Index (CPI) (MoM) (Aug) USCB Consumer Confidence (Aug)JOLTS Job Openings (July)31.08RussiaWeekly inflationChinaPMIs (Aug)GermanyGermany Unemployment Change (Aug)EUConsumer price index (CPI) (YoY) (Aug) USADP nonfarm payrolls (June)Crude oil stocks01.09ChinaManufacturing PMI from Caixin (Aug)GermanyManufacturing activity index (PMI) (Aug)USInitial jobless claimsISM Manufacturing PMI (Aug)02.09USNon-farm payroll change (Aug)Rate of unemployment ...

The market the day beforeThe trading session on June 1 on American stock exchanges ended with a decline in the main indices. The S&P 500 dropped 0.75% to 4,101 points, the Nasdaq lost 0.72%, the Dow Jones adjusted 0.54%. Most sectors closed trading in the red zone. Finance (-1.61%) and healthcare (-1.44%) showed a noticeable drop. The positive dynamics of quotations was shown by energy companies (+1.63%) and telecoms (+0.17%).Company newsSalesforce's quarterly results (CRM: +9.88%) were better than analysts' forecasts. Although operating savings allowed us to revise up expectations for annual profit, the updated forecast did not meet the average market estimates.HP Inc. (HPQ: +3.86%) however reported a decrease in sales in most segments, however reported a decrease in sales in most segments. Nevertheless, the profit guidance for the current fiscal year was higher than consensus estimates.Delta Airlines (DAL: -5.16%) improved its forecast for the second quarter, taking into account increased demand for air travel and tariff indexation, expecting revenue to recover to the pre-pandemic level.We expectThe ISM index of business activity in the manufacturing sector rose to 56.1 points in May, rising from 55.4 in April and exceeding experts' expectations. Indicators of new orders and production volume have strengthened, while the supply situation is gradually improving. As a result, the stock sub-index has recovered to its maximum in the last six months. Filling the shortage of goods on the market and restoring employment can lead to a softening of producer price pressure. At the same time, the report indicates the possibility of a slowdown in the growth of manufacturing industry metrics in the face of a strengthening dollar and the expected cooling of consumer demand. According to the Fed's Beige Book, the US economy grew at a moderate pace in April-May. According to estimates of a number of regional banks, against the background of a reduction in monetary stimulus and an increase in interest rates, GDP growth is already beginning to slow down. At the same time, several surveyed districts noted a softening of tension in the labor market and a weakening of inflation.St. Louis Fed President James Bullard said on June 1 that he expects US economic growth to slow down to 1.75-2% in the long term. As the most determined representative of the Fed, Bullard still supports raising the Fed rate to 3.5% by the end of the year, but notes that this level may be lowered in 2023 or 2024, as soon as inflation returns to the target value. The head of the Federal Reserve Bank of San Francisco, Mary Daley, stressed that a pause in the current increase cycle is possible after the discount rate reaches the level of 2.5%.The stock exchanges of the Asia-Pacific region closed the trading session on June 2 in different directions. Japan's Nikkei index adjusted by 0.16%, Hong Kong's HSI C dropped by 1.05%, China's CSI 300 index added 0.16%. EuroStoxx 50 ≈ 0,73%.The price of Brent crude oil futures is $113 per barrel. Gold is trading at $1,854 per troy ounce.In our opinion, the S&P 500 will hold the upcoming session in the range of 4060-4120 points.MacrostatisticsToday, data on the volume of industrial orders in the US for April will be published (consensus: growth of 0.7% mom after 1.8% in March).Sentiment IndexThe sentiment index rose 2 points to 37.Technical pictureAfter the rally of the last trading week, the S&P 500 dropped to the short-term support level of 4,100 points. The RSI indicator is within the neutral zone, the MACD indicates the preservation of the bulls' positions. Short-term growth is possible if the benchmark manages to stay above the range of 4060-4100 points. In case of a breakdown of this level down, the index will continue to show negative dynamics.ReportsToday Lululemon Athletics (LULU) will report for the 1st quarter of fiscal year 2022 after the market closes. The issuer's revenue is expected to grow by 24% YoY, to $1.53 billion, and adjusted EPS will increase by 23% YoY, amounting to $1.43. After the publication of the report for the last quarter, the company's quotes added almost 10%, as the profit for the three reporting months, as well as the revenue and profit margins for the quarter and the full fiscal year 2022 exceeded the consensus estimates of Wall Street analysts. At the same time, the company's revenue for the last quarter coincided with general market expectations. As a result, investors believe that Lulu's actual results will coincide with the projected growth. In the last quarter, the issuer's sales increased by 23% YoY, to $2.13 billion, surpassing analysts' preliminary estimates. The positive dynamics of the last quarter of the year was due to a 32% increase in comparable sales and a 17% increase in revenue from direct sales to ...

HP Inc. reported a profit of $1 billion (94 cents per share) in the 2nd quarter, compared with $1.23 billion (98 cents per share) a year earlier. Adjusted operating profit was $1.08 per share. Revenue for the reporting period increased to $16.5 billion. Expected earnings of $1.05 per share on revenue of $16.2 billion.According to the company's management, the decline in PC shipments was most acutely observed in the budget segment, most noticeably in Europe and China, and in the industry as a whole, they decreased by 6.8% in the first quarter of 2022. They also added that the shortage of chips is now more acute in the segment of printers and MFPs, and in the situation with PCs, the situation is already much better than a year ago.In the personal systems segment, revenue increased to $11.5 billion (+9.2%). In the consumer sector, revenue fell by 6%, while in the commercial sector it grew by 18% in monetary terms, accounting for 65% of the revenue of the personal systems division. However, the number of PC sales in units decreased by 17%, laptops by 23% and desktop systems by 11% compared to last year.In the print segment, revenue amounted to $5 billion (-7%). The commercial sector reduced revenue by 4%, and the consumer sector by 12%, revenue from supplies of consumables decreased by 6%. The number of sales of printing systems in pieces decreased by 23%, in the commercial segment by 17%, and in the consumer segment by 24%. According to the company's management, the decline in the printing segment is partly caused by a shortage of components.Together with the disruptions in logistics, the shortage of components did not allow us to fully meet the demand for the company's products, but the situation improved compared to last year. Reducing the shortage of chips this year will have a positive impact on the operating results of HP Inc., due to which the printing segment may ...

According to Warren Buffett, the state of the markets in the last few years resembles a casino. But such volatility allowed his Berkshire Hathaway (BRK) fund to find undervalued companies during all this madness.Let's see what the fund has bought.One of the largest investments in recent years is the American energy giant Chevron (CVX). Its share in the structure of the fund has increased almost 6 times: from $4.5 billion to $25.9 billion. Now the company ranks 3rd in the fund's portfolio, second only to Apple (AAPL) and Bank of America (BAC). Even Warren's right-hand man Charlie Munger noted that he could hardly imagine a more useful industry than energy right now.In addition, Berkshire Hathaway now owns 9.5% of the shares of computer game developer Activision Blizzard (ATVI), its share in the fund's portfolio has grown to 1.5%. The main acquisitions of ATVI shares were made after the announcement that Microsoft (MSFT) was buying Activision Blizzard. It seems that Buffett is confident that the deal will take place, the antimonopoly service should not interfere: Microsoft does not currently have other similar assets in this area.ATVI shares are currently trading at $75. It is planned that the deal should be closed by June 30, 2023 at a price of $95 per piece. Thus, we have an upside of 26% on the horizon of 1 year. Isn't this an undervalued investment?In addition, Buffett also acquired shares in other companies, such as HP (HPQ) or Occidental Petroleum (OXY). As a result, the Berkshire Hathaway foundation now owns approximately 11% of HP and has become the company's largest shareholder. In addition, it is another technology company in the portfolio, which is generally not typical for Buffett.After all these purchases, the amount of cash in the portfolio fell by about 27%: from $146 billion to $106. It turns out that despite the fall of the S&P 500 index, in this sector you can still find undervalued companies that are now being sold at a ...

Warren Buffett's investment company Berkshire Hathaway has acquired 121 million shares of the American computer and printer manufacturer HP worth more than $4.2 billion. Berkshire Hathaway's share is 11.4%.HP securities last year showed an increase of 53%, but since the beginning of this year they have fallen by 7.3%. Against the background of the information about the deal, HP shares on the permarket on April 7 rose by 11.06% to $38.77 per ...

Over the past 12 months, HP (HPQ) shares have increased by 45%. The PC manufacturer's papers are ahead of the broad market and demonstrate much more positive dynamics than most representatives of the technology sector. It seems that the potential for further growth is limited, while investors should think about profit-taking.There are several reasons for concern. Fundamentally, HP is still moderate, but there is no room for a strong rally. In 2022, earnings per share of $4.18 are expected, which means the forward P/E ratio barely exceeds 9. However, it is worth remembering that the production of machinery is an industry that is strongly influenced by macro shocks. In other words, the manufacturer's position may change at any moment, and investors are hardly ready to consider HPQ a risk-free asset.According to the results of the recent quarter, PC sales increased by 13% YoY, to $11.8 billion. This is primarily due to the desire of corporate users to prepare the office for the return of employees: sales to legal entities increased by 25% YoY. A PC is not something that is bought every year, so the positive effect of corporate activity is not able to last for a long time. In addition, it is worth considering the fact that last year IT departments were more busy creating reliable conditions for remote work, which is why they spent less on hardware.Printers account for $4.9 billion of total revenue. How long will the need to print summaries, presentations and other corporate waste paper last at current levels? With the further digitalization of business processes, one of the most monetary divisions of HP may lose part of its ...

The increased demand for computers and other devices lasts much longer than predicted, thanks to which HP Inc's business continues to grow at a rapid pace. Despite the spring drawdown, at the moment the company's shares are trading 24% higher than at the beginning of the year. After the correction, HPQ looks much more attractive: the P/E ratio is 8.5, and the yield has reached 2.6%, but the risks of further price falls remain.The sale did not happen out of the blue: investors reacted to very real risks. First of all, this is the effect of a high base: it will be much more difficult to demonstrate such high growth rates in annual terms in the following quarters. Perhaps, after the opening of offices, the demand for printers and other equipment will increase, but this will clearly not be enough to maintain the current dynamics.It is also worth noting the fact that people do not purchase computers and office equipment once a year, which means that the increase in sales in 2020 should have occurred to the detriment of the results in 2021-2022. If these guesses are correct, it turns out that HP Inc is at its peak.Let's not forget about the general problem of the industry - the shortage of chips: the increase in the cost of production will be shifted to end users, which can reduce their interest.According to the results of the second quarter of 2021, revenue increased by 27% Y/Y, to $10.6 billion. Sales of laptops increased by 47%, and printers by ...