Consider Hewlett-Packard, because its printers won't go out of style

More

Did you a get chance to establish a position Hewlett-Packard back in April? If you did, you're up about 20%, and the future looks even better.

I'm Reiterating my Buy rating for Hewlett-Packard (NYSE: HPQ), first recommended on April 24, 2009 at a price of $35.80.

Hewlett is well-positioned to increase market share in PCs, servers, printers, and IT services. The company's cost reduction efforts have gone reasonably well, and it's made progress re-positioning its customer services operation to become the one-stop shop that many customers seek. Meanwhile, the integration of Electronic Data Services, acquired for about $13 billion, should go smoothly. The First Call FY2009/FY2010 EPS estimates for HPQ are $3.80 to $4.21.

Further, with a P/E of 10, this will likely be your last chance to earn an outsized gain with HPQ. Heck, Hewlett's durable printer business practically warrants a P/E of 10 itself.

Stock Analysis: Hewlett-Packard is a moderate-risk stock. If you've already purchased the company's shares, hold them. If not, consider buying a 50% position in HPQ now; then buy another 25% in three months, if U.S. and global economic conditions don't worsen substantially. Under any circumstance, don't buy more than 75% of your HPQ position before October 2009. Sell/Stop Loss if you were to buy shares in this company: $18.

Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.

Reader Comments (Page 1 of 1)

Symbol Lookup
IndexesChangePrice
DJIA+150.2510,058.64
NASDAQ+24.822,150.87
S&P 500+13.781,070.52

Last updated: February 10, 2010: 07:45 AM

Hot Stocks

DailyFinance Headlines

TheFlyOnTheWall.com Headlines

BioHealth Investor Headlines

WalletPop Headlines

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

BloggingStocks Partners

More from AOL Money & Finance

WalletPop Headlines