11 Most Undervalued Tech Stocks to Buy Right Now

Page 5 of 5

6. HP Inc. (NYSE:HPQ)

Forward P/E: 8.65

On May 28, Reuters reported that HP Inc. (NYSE:HPQ) had second-quarter revenue growth by 9% to $14.41 billion and adjusted EPS of 86 cents, beating LSEG estimates of $14.07 billion and 71 cents. The firm said demand for artificial intelligence advanced PCs drove results.

AI PCs accounted for 44% of shipments, jumping from over 35% in the prior quarter. CFO Karen Parkhill told Reuters the company “took deliberate actions to lower memory costs” through product reconfiguration, sourcing changes, and pricing adjustments.

HP Inc. (NYSE:HPQ) guided third quarter adjusted EPS to 61-71 cents as compared to 64 cent estimates, with the midpoint slightly above consensus. The firm also projected fiscal 2026 EPS to be between $2.90 and $3.10.

Reuters reported that the corporation sees operating margins bottoming out in the fourth quarter as memory chip scarcity pressures costs. The company also expects improvement in fiscal 2027 with a Windows 11 shift toward premium PCs after Windows 10 support ended in October.

HP Inc. (NYSE:HPQ) also said AI PC shipments will rise toward 60-70% next year and exceed 70% by fiscal 2028.

HP Inc. (NYSE:HPQ) is an information technology company. It works through the following Personal Systems, Printing, and Corporate Investments segments.

While we acknowledge the potential of HPQ to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HPQ and that has 100x upside potential, check out our report about the cheapest AI stock.

Click to continue reading and see the 5 Most Undervalued Tech Stocks to Buy Right Now.

Disclosure: None. Follow Insider Monkey on Google News.

Page 5 of 5
1281292 - 11759070 - 1