Hello, Thanks for signing up for MarketBeat Daily Ratings—we’re excited to have you on board. Every weekday, you’ll get a curated summary of new “Buy” and “Sell” ratings from Wall Street’s top-rated analysts, the latest stock news, and bonus investing content—all delivered straight to your inbox. You’re just two quick steps away from completing your sign-up: 1. Make sure our emails go to your inboxGmail users:
Mobile: Tap the three dots (…) in the top right and select Move to Inbox or Move to Primary
Desktop: Click the folder icon at the top and select Move to Inbox or Primary Apple Mail users:
Tap our email address at the top (next to From: on mobile), then select Add to VIP Other providers:
Reply to this message and add newsletters@analystratings.net to your contacts 2. Confirm your subscriptionClick this link to confirm your subscription. This verifies your account and ensures you receive your newsletters without interruption instead of getting stuck in your spam filter. Confirm your subscription here. After you confirm, feel free to download our popular free report, "7 Stocks to Buy and Hold Forever" with this link. Thanks again for subscribing—we look forward to being part of your investing journey. 
Matthew Paulson
Founder and CEO, MarketBeat. P.S. If you didn’t mean to subscribe, no problem—you can unsubscribe here.
Additional Reading from MarketBeat Media
HP Inc. Stock Is Historically Cheap, but Can AI Change the Story?Written by Sam Quirke. Publication Date: 4/1/2026. 
Key Points
- HP’s valuation looks extremely cheap, with its dividend yield almost matching its P/E ratio—a very unusual occurrence.
- Strong cash flow and shareholder returns make the stock attractive, yet the market remains unconvinced by its AI strategy.
- The setup is compelling, but without a clear growth catalyst, HP risks remaining a value trap rather than a breakout opportunity.
- Special Report: The Biggest IPO Ever: Claim Your Stake Today
At first glance, HP Inc. (NYSE: HPQ) looks like one of the easier buys in the market. The stock trades at a price-to-earnings (P/E) ratio of roughly 7 and offers a dividend yield above 6%. That combination is uncommon and immediately prompts the question: are investors being handed an obvious opportunity? Yet a quick look at the stock’s chart suggests the market disagrees. Shares have been stuck in a multi-month downtrend and last reached an all-time high in 2022. The fact that the stock is trading near levels last seen in 1999 doesn’t exactly inspire confidence, either.
Since 2009, the Dividend Machine has posted a total return of 7,056.47% - turning a $10,000 stake into more than $700,000 while the broader market struggled through multiple downturns.
With a 93% win rate since launch, this dividend-focused strategy has kept investors cashing steady checks through every crash. Bill Spetrino has released a free report outlining how to position for income no matter what the market does next. Claim your free report and see how the Dividend Machine works
If the P/E-versus-dividend setup is so attractive, why isn’t the stock moving higher? Let’s examine the case on both sides. Why the Valuation Looks So AttractiveOn paper, HP checks many of the boxes value investors like. A P/E ratio around 7 puts it well below most of its tech peers, while a dividend yield north of 6% is unusually generous. Combined with ongoing share buybacks, the company’s total shareholder yield approaches the low teens. That payout profile is supported by strong free cash flow—arguably HP’s strongest fundamental attribute. The company generates billions in annual cash, giving it flexibility to return capital to shareholders while still investing in its business. Seen this way, HP looks less like a distressed operator struggling to fund itself and more like a mature, cash-generative business trading at a discount. In isolation, that would normally attract meaningful investor interest. Why the Market Isn’t Buying ItThe market, however, has already priced in a broader judgment. Despite being categorized with technology names, HP is fundamentally a hardware company, with core businesses in personal computers and printing. Those are not high-growth segments: demand is cyclical, margins can be pressured, and long-term growth prospects are limited. Recent earnings have been stable but not transformative. Revenue growth has been modest and uneven, and optimistic guidance hasn’t yet sparked sustained momentum in the stock. In short, the stock looks cheap for a reason—investors are discounting the absence of a clear growth engine. The AI Angle: Real Opportunity or Just Narrative?This is where the story gets more interesting. HP has been positioning itself to benefit from broader artificial intelligence adoption, particularly through AI-enabled devices. The logic is straightforward: as AI becomes embedded in workflows, demand for more powerful, capable devices could prompt an upgrade cycle. That potential upgrade cycle could affect both consumer and enterprise customers. The broader technology landscape is moving in that direction, and hardware will have a role to play. But timing is the key issue. So far there is limited evidence that HP’s AI push is translating into meaningful revenue growth. The narrative exists, but the numbers have yet to follow. Until that changes, investors are likely to treat AI as upside potential rather than the central investment thesis. What Happens NextLooking ahead, the critical question is whether HP can change that narrative. The next earnings report, due in early June, will be important not just for headline figures but for any signs that the AI strategy is driving real demand. If HP can demonstrate even a modest upgrade cycle stemming from its AI-enabled devices, that could shift sentiment. Given the stock’s low multiple, it wouldn’t take much to justify a move higher. Supporting this possibility: HP has traded broadly flat over the past two months even as the broader market has sold off. The benchmark S&P 500 index is down roughly 5% year to date, while HP remains essentially unchanged. That stability suggests the stock may have found a base, which would skew the risk/reward toward the upside heading into Q2. If the company delivers and the AI narrative begins to show up in the numbers, the unusual dynamic—HP’s dividend yield nearly matching its P/E—could start to look less like a warning sign and more like a genuine opportunity. |
