Hewlett-Packard Stock Forecast: HP is Trending Low, but Big Data Could be a Solution to Revive the Past Glory (NYSE:HPQ)

Hewlett-Packard Stock Forecast

I Know First supplies financial services, mainly through stock forecasts via their predictive algorithm. The algorithm incorporates a 15-year database, and utilizes it to predict the flow of money across 2000 markets. The self-learning algorithm uses artificial intelligence, predictive models based on artificial neural networks, and genetic algorithms to predict money movements within various markets.

The algorithm produces a forecast with a signal and a predictability indicator. The signal is the number in the middle of the box. The predictability is the number at the bottom of the box. At the top, a specific asset is identified. This format is consistent across all predictions. The middle number is indicative of strength and direction, not a price target. The bottom number, the predictability, signifies a confidence level.Long and Short Aggressive

In the past, I Know First had already success in predicting HPQ’s stock trend and has a strong track record tracing back even further, by analyzing fundamental variables such as volatility, volume, and short-term trends.

Moreover I Know First published on Seeking Alpha a bearish article about Hewlett-Packard, which last Thursday released its quarterly earnings, but as expected the results were meagre and nobody was expecting something better. The profit fell by 13%, the net income was $900, from the last period last year of $1 billion and 47 cents a share compared to a previous 52 cents per share.

Having explained how I Know First’s algorithm works, it is worthwhile to see if the algorithm agrees with the bearish fundamental analysis of the company. The three-month and one-year forecasts for Hewlett-Packard are included.

Hewlett-Packard Stock Forecast

The stock has a bearish signal for both time horizons, signifying that it is currently overvalued. Over the predicted time horizons, the stock price continue decreasing, which is in agreement with the fundamental analysis. HP is undergoing a period of stiff changes both from a strategic and organisational point of view. Starting from the strategic changes, the company has in plan to split itself into two market traded entities: Hewlett-Packard enterprise with the aim to supply technologies and services to businesses and HP Inc., practically the former PC and printer company.

Positive signal strength does not mean investors should automatically buy the stock. Dr. Roitman, who created the algorithm, created rules for entry for a stock such as Alcoa Inc. Using this trading strategy, an investor should buy a stock if the last 5 day signal strength’s average is positive and if the last closing price is above the 5-day moving average price. When both of these conditions are met, it is a good time to initiate a position in the stock.