EUR/USD 1.14398
-0.024%
Gold 3995.58
0.482%
Oil 79.392
0.644%
USD/JPY 162.406
0.026%
GBP/USD 1.34406
-0.280%
GBP/JPY 218.288
-0.227%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
Cathay Pacific (00293.HK): Postponed the resumption of passenger and cargo services to and from the Middle East.July 17th - According to the Ministry of Finance, the battery consumption tax policy will be adjusted in stages starting September 1, 2026. According to a recent announcement by the Ministry of Finance, the General Administration of Customs, and the State Taxation Administration, consumption tax preferences for lithium primary batteries, lithium-ion batteries, and photovoltaic cells will be gradually phased out; meanwhile, some new technology battery products will enjoy consumption tax exemption for a certain period. Industry insiders say that overall, this policy adjustment is in line with the changing development of my countrys battery industry, will better leverage the regulatory role of consumption tax, promote resource conservation and environmental protection, and will promote the healthy and high-quality development of the battery industry, driving technological progress and industrial upgrading.On July 17th, Francesco Pesole of ING Group stated in a report that investors expectations for a Bank of England interest rate hike appear overly aggressive. The market has already priced in a total of 36 basis points of rate hikes by the Bank of England in 2026. However, ING expects the Bank of England to maintain its interest rate at 3.75% throughout 2026. Pesole stated, "We still believe there are significant downside risks to short-term sterling interest rates."The VIX fear index hit a more than one-week high, ultimately rising 1.7 points to 18.44.The onshore yuan closed at 6.7773 against the US dollar at 16:30 on July 17, down 95 points from the previous trading day.

Why is HP stock down by 6% today?

Larissa Barlow

Apr 01, 2022 09:56

Tips

  • Morgan Stanley lowers its PC sales forecast and downgrades HP and Dell.

  • The pandemic's demand boost may have worn off, and PC sales may revert to their normal downward trajectory.

  • HP stock may require additional upside catalysts to return to recent highs above $40.

  • HP stock is under pressure following an analyst downgrade.


截屏2022-04-01 上午9.46.00.png

 

HP shares fell after Morgan Stanley downgraded the stock owing to concerns of sluggish PC sales. Dell was also downgraded.

 

Morgan Stanley predicts that hardware budgets could be reduced, hurting HP sales. Furthermore, demand may drop as the world returns to normalcy following a two-year epidemic that boosted PC consumption.

 

The market reacted cautiously to the analyst downgrade, and HP stock fell from $40 to $36. HP stock attempted to close above yearly highs yesterday, but the downgrade definitely harmed the positive momentum.

What Is the Future of HP Stock?

Analysts estimate HP to report earnings of $4.28 per share this year and $4.43 per share the next year, thus the stock is trading at only an 8 ahead P/E ratio, which appears to be low for the current market situation.

 

However, Dell is even cheaper with a forward P/E of 7, indicating that the market does not have a strong taste for computer hardware firms.

 

Concerns about declining demand may ultimately put greater pressure on HP stock in this climate. Companies and people that updated their hardware in 2020–2021 may be hesitant to renew it, and PC sales may revert to their former downward trend.

 

This is a significant risk for HP stock, which may require other favorable catalysts to return to its recent highs. At the same time, the stock's present valuation levels may provide some support in the approaching trading sessions.

Suggestion