HP Inc.: Willing To Bite At A 6.5% Yield, Despite Memory Risk (Rating Upgrade)

Gary Alexander33.58K FollowersFollow5ShareSavePlay(11min)CommentsSummaryHP Inc. is upgraded to buy as valuation and dividend yield outweigh operational headwinds.Revenue growth has accelerated recently, driven by very strong consumer PC sales.AI-driven cost reductions are expected to deliver ~$1 billion in annualized opex savings, supporting margin resilience even as the company is squeezed by rising memory prices.The current 6.5% dividend yield and single-digit P/E provide compelling compensation for near-term outlook caution. AnthonyRosenberg/iStock Unreleased via Getty Images The S&P 500 has fully recovered all of its year-to-date losses, with investors hopeful that talks with Iran will produce an end to the conflict and restore oil prices back to normal. What has not recovered, however, isThis article was written byGary Alexander33.58K FollowersFollowWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.Analyst’s Disclosure: I/we have a beneficial long position in the shares of HPQ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.