HPQ Stock Forecast: “A story of reinvention” -Dion Wesler, CEO of the company

IMG_3270Barbara Chouraqui, is a Junior Financial Analyst at I Know Firstand enrolled in B.A. in Business at the Institut Superieur de Gestion -ISG, Paris, France.

HPQ Stock Forecast


  • How HPQ manage to revamp its market
  • Harsh competition subsists in HPQ business
  • BCG Matrix and the future challenges of the company
  • I Know First Algorithmic Bullish on HPQ


How HPQ manage to revamp its market

Primarily Hewlett Packard (HP), the company went under a split in 2015 in two entities. The first one, HPQ, kept the initial activities of the company in the PC and printers business while the other one, HPE, is occurring in the enterprise products and service businesses. The one at stake in this article is HPQ.

The split enabled the brand new HP Inc. to refocus itself but also to customize its core business generating a 30% rise of its stocks in 2016 despite a declining market (Investopedia). The company earns its income essentially from three segments: the personal systems, the printing, and the corporate investments segments; Those are respectively providing customers but also commercials persons with PCs, printer hardware and scanning services as well as operations including some business incubation projects.

HPQ: "A story of reinvention"


Harsh competition subsists in HPQ business

HP is in competition with many other actors in the market. Its direct competitor is Lenovo, a Chinese company that develops, manufactures and markets technology products and services. With 20.7% of market share, Lenovo was the first seller in 2016, closely followed by HP that realized 19.4% of market share.

HPQ: "A story of reinvention"

Source: Wikipedia

And the competition is not only with other PC providers, but is also anchored in the conflict between PCs and Mac. Even though there are still consumers switching from Mac to PC, this phenomena remains rare and the traditional combat between PC and Mac is in favour of Apple. Despite the plummet of sales in the market, Apple is the only one to resist to the trends and to remain one important actor of the market.


BCG Matrix and the future challenges of the company

34.82% of the HPQ sales come from the United States and the 65.18% rest come from the international.

HPQ: "A story of reinvention"


More on what a BCG Matrix is can be found here.

Compared to its competitors, HP is increasing its market share regarding the majority of it SBUs. Its top products are its services including Infrastructure Technology Outsourcing and Application and Business Services. They enable for example a better management of critical business processes by its clients. Its imaging and printing and software segments are anchored in a growing market. However, their stakes in PCs and Workstations business decreased. As stated earlier, the separation of the companies in two entities enable HPQ to focus on its core products and to recover.

However, HP has not finished its recapture of the market and still need to vary its range of products in order to satisfy the fast-evolving needs of its customers. The CES of 2017, which takes place every year, is the biggest event for companies to present their technologic and electronic innovations and products. And HP had some products to present that should be soon unveiled (Bloomberg).

I Know First Algorithmic Bullish on HPQ

I Know First currently maintains a bullish stance on HPQ with signal strength 183.85 and predictability 0.77 for 1 year forecast.

HPQ Stock Premium Article

I Know First Algorithm Heatmap Explanation

The sign of the signal tells in which direction the asset price is expected to go (positive = to go up = Long, negative = to drop = Short position), the signal strength is related to the magnitude of the expected return and is used for ranking purposes of the investment opportunities.

Predictability is the actual fitness function being optimized every day, and can be simplified explained as the correlation based quality measure of the signal. This is a unique indicator of the I Know First algorithm, allowing the user to separate and focus on the most predictable assets according to the algorithm. Ranging between -1 and 1, one should focus on predictability levels significantly above 0 in order to fill confident about/trust the signal.


HP managed successfully its demerger in two distinct companies that perform better apart than together. Now the company has to develop its range of products in order to combat Lenovo, its direct competitor which holds the greater market share of the business.