HP Inc. stock was seen actively trading at $16.13, up from its previous close of 1.13% yesterday. Given the stock’s positive price movement, investors are likely to remain focused on the company’s recent data.
The tech company currently trades with a market capitalization of $27.46 billion, marking an adjustment for revenues that have been growing by around 2.01% on a quarterly year-over-year basis as per the recent announced report for the last quarter.
PC Market Improves
Recently, HP Inc. posted small gains despite a tight competition in the personal computer market.
Ahead of the PC and printer giant’s announcement of its quarterly growth on Wednesday, its overall sales posted 4% higher on a year-over-year basis to $12.7 billion.
It appears that laptops, desktops, and tablet units have been the main contributor to boost the company’s quarter, with sales climbing by 10% on a year-over-year basis to $8.2 billion.
Meanwhile, HP CFO Cathie Lesjak said over the phone with analysts on Wednesday that the company has “definitely seen” an improved PC market, following nods from several analyst reports such as Microsoft CEO Satya Nadella, which cited a stabilized PC sales after years of big declines.
However, Lesjak announced some key points for its PC business unit in 2017 after citing there could be another “headwinds” for the company because of the rising costs of components, which could be disappointing for potential customers due to higher prices.
Despite a potential headwind, CEO Dion Weisler seemed confident for its PC business, citing its recent growth could continue further, in which some investors also agreed with his statement.
The chart below illustrates the HP Inc stock’s movement after seeing positive gains during the recent sessions, including the improvement of the company’s PC business. The stock is currently trading at $16.23 in a light trading volume of 288, near resistance 16.40.
Additionally, the stock previously reached that same level on December 8, 2016 after HP Inc, and Lam Research had traded both their ex-dividend for their respective upcoming dividends, which paid a quarterly dividend of $0.1327.
The upward trend was backed by an opportunity for a future hybrid in cloud computing after its reinvention stand alone as an enterprise technology company.
During those times, the company’s divestitures were still in progress, which had spun approximately 150,000-strong enterprise service business to CSC, along with the systems management software assets to Micro Focus.
Hence, given a bullish tone on the company’s stock, the RSI suggests that the overbought level has been reached already. It could signal a drop on the stock unless the price could hit at the nearest resistance.
Further, the stock price is currently changing hands in a light trading volume and the RSI stood at 71.8452.
Given an improvement on HP Inc.’s PC business backed by some analysts, it is expected that it could give a lift on their reinvention strategy and boost their sales. However, as there could a potential headwinds, with an unexpected higher price with components, customers could buy a cheaper one.
However, Weisler along with other analysts’ statement added on optimism on the company’s confidence for a positive result.
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