Why Hewlett-Packard Is Undervalued

Hewlett-Packard (HPQ) is a global provider of products, technologies, software, solutions & services to individual consumers, small- and medium-sized businesses and large enterprises, including customers in the government, health and education sectors.

leaked memo from CEO Leo Apothekar warned of a tough quarter, igniting a selloff in the stock.  The company decided to release its Q2 financial results a day early to address investor angst.  Earnings were announced on Tuesday, May 17, 2011 and management added fuel to the fire when they lowered 2011 guidance, punishing the stock; sending its PE to historic lows.

Guidance generates PE’s of 8.4 and 7.2 based on GAAP diluted EPS and non-GAAP diluted EPS, respectively. 

Is the selling overdone?  We’ll look at the numbers, along with past results to detect any trends, followed by our valuation and commentary.
……..Continue Reading at SA

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