Market Sell-Off Drives Multiple Stocks to 52-Week Lows
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 hours ago
0mins
Source: Fool
- ADP Stock Potential: Automatic Data Processing (ADP) has seen a 25% decline in its stock price over the past six months, currently trading at a forward P/E of only 21 times; if market sentiment improves, the stock could rerate to 25-30 times forward earnings, enhancing investor confidence and improving valuation.
- American Water Works Merger Outlook: American Water Works (AWK) faces pressure from high interest rates and regulatory scrutiny, and while its merger with Essential Utilities has shareholder approval, it still requires regulatory clearance; if successful, it could help achieve long-term earnings and dividend growth targets of 7%-9%.
- PayPal Management Change: Following a CEO change, PayPal's stock has dropped nearly 21% due to weak earnings and market confidence; currently trading at less than 8 times forward earnings, a strategic alternative from the new management team could catalyze a rebound in shares.
- AI Impact Market Concerns: The market's fears regarding the potential disruptive effects of generative AI on various sectors have led to sell-offs in non-tech stocks, although this bearish sentiment may be overstated, necessitating close attention to the fundamental changes in affected companies.
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Analyst Views on HPQ
Wall Street analysts forecast HPQ stock price to rise
14 Analyst Rating
1 Buy
10 Hold
3 Sell
Hold
Current: 18.870
Low
20.00
Averages
25.30
High
30.00
Current: 18.870
Low
20.00
Averages
25.30
High
30.00
About HPQ
HP Inc. is a global provider of sustainable devices, services and subscriptions for personal computing (PC), printing, three-dimensional (3D) printing, hybrid work, gaming and other related technologies. The Company’s segments include Personal Systems, Printing and Corporate Investments. Its Personal Systems segment offers desktops, notebooks, and workstations, thin clients, retail point-of-sale (POS) systems, displays, hybrid systems, software, solutions including endpoint security and services. Its Printing segment provides consumer and commercial printer hardware, supplies, services and solutions. Printing is also focused on graphics and 3D printing and personalization in the commercial and industrial markets. Its Corporate Investments segment includes certain business incubation and investment projects. Its security solutions provide layered resiliency using features such as containment and isolation technology as well as artificial intelligence (AI) deep learning.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Market Sell-Off Drives Multiple Stocks to 52-Week Lows
- ADP Stock Potential: Automatic Data Processing (ADP) has seen a 25% decline in its stock price over the past six months, currently trading at a forward P/E of only 21 times; if market sentiment improves, the stock could rerate to 25-30 times forward earnings, enhancing investor confidence and improving valuation.
- American Water Works Merger Outlook: American Water Works (AWK) faces pressure from high interest rates and regulatory scrutiny, and while its merger with Essential Utilities has shareholder approval, it still requires regulatory clearance; if successful, it could help achieve long-term earnings and dividend growth targets of 7%-9%.
- PayPal Management Change: Following a CEO change, PayPal's stock has dropped nearly 21% due to weak earnings and market confidence; currently trading at less than 8 times forward earnings, a strategic alternative from the new management team could catalyze a rebound in shares.
- AI Impact Market Concerns: The market's fears regarding the potential disruptive effects of generative AI on various sectors have led to sell-offs in non-tech stocks, although this bearish sentiment may be overstated, necessitating close attention to the fundamental changes in affected companies.
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Does the Departure of the DOJ Antitrust Chief Signal a Win for Lobbyists?
Departure of Antitrust Chief: The antitrust chief of the Department of Justice is set to leave on Thursday, raising questions about the future of ongoing legal actions.
Impact on Live Nation Lawsuit: The departure is being closely monitored for its potential effects on the government's civil lawsuit against Live Nation Entertainment, a major player in the concert industry.
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Wall Street Tech Stocks Lose Over $500 Billion in Value
- Market Value Loss: On Thursday, Wall Street's tech sector saw over $500 billion wiped off market value across 10 major companies, indicating a sharp decline in investor confidence amid simultaneous pressures on both software and hardware sectors.
- Cisco Earnings Impact: Cisco's stock plummeted 11% despite reporting earnings of $1.04 per share, exceeding expectations, as the company’s gross margin guidance of 65.5%-66.5% fell short of the 68% consensus, highlighting the impact of rising hardware costs.
- Memory Shortage Risks: Lenovo confirmed mounting pressure on PC shipments, with CEO Yang Yuanqing stating that while unit pressures are expected, the company aims to maintain profitability, reflecting growing concerns over memory shortages in the industry.
- Software Sector Decline: The iShares Expanded Tech-Software Sector ETF dropped over 3% on Thursday, with the sector down over 20% year-to-date, illustrating the ongoing impact of fears surrounding AI disruption on software stock performance.
See More
Wall Street Market Dynamics Recap
- Market Dynamics: Wall Street experienced a decline on Thursday, particularly after the conclusion of the Morning Meeting, as the rotation from technology stocks to cyclicals continued, with industrials showing strong performance and driving portfolio results, indicating resilience in cyclical sectors.
- Stock Performance: Companies like Dupont, Dover, Honeywell, Linde, GE Vernova, and Eaton have shown extraordinary year-to-date performance, even as the S&P 500 has only seen slight gains, highlighting the significance of these cyclical stocks in the current market environment.
- Cisco Earnings Impact: Cisco's earnings report on Wednesday, despite a networking order growth exceeding 20%, saw shares drop over 10% on Thursday due to a dip in gross margins from rising memory prices, reflecting market concerns over its profitability.
- Apple Developments: Apple's shares fell more than 3% on Thursday, influenced by Cisco's warnings, and although iPhone sales remain strong, issues with the Siri upgrade testing and a delayed full launch could impact future market performance.
See More
Cisco Faces Rising Memory Costs, Leading to Stock Decline.
- Stock Performance: Cisco Systems' stock is experiencing a significant decline.
- Profit Margins Impact: The drop is attributed to concerns over rising memory costs affecting the company's profit margins.
See More
US PC Manufacturers' Stocks Decline as Lenovo Alerts on PC Shipment Challenges Due to Memory Shortage
PC Market Decline: The global PC market is experiencing a downturn, with significant drops in shipments reported by major manufacturers.
Lenovo's Warning: Lenovo has issued a warning regarding potential pressure on PC shipments due to a shortage of memory components, which could exacerbate the market's challenges.
See More
Market Sell-Off Drives Multiple Stocks to 52-Week Lows
- ADP Stock Potential: Automatic Data Processing (ADP) has seen a 25% decline in its stock price over the past six months, currently trading at a forward P/E of only 21 times; if market sentiment improves, the stock could rerate to 25-30 times forward earnings, enhancing investor confidence and improving valuation.
- American Water Works Merger Outlook: American Water Works (AWK) faces pressure from high interest rates and regulatory scrutiny, and while its merger with Essential Utilities has shareholder approval, it still requires regulatory clearance; if successful, it could help achieve long-term earnings and dividend growth targets of 7%-9%.
- PayPal Management Change: Following a CEO change, PayPal's stock has dropped nearly 21% due to weak earnings and market confidence; currently trading at less than 8 times forward earnings, a strategic alternative from the new management team could catalyze a rebound in shares.
- AI Impact Market Concerns: The market's fears regarding the potential disruptive effects of generative AI on various sectors have led to sell-offs in non-tech stocks, although this bearish sentiment may be overstated, necessitating close attention to the fundamental changes in affected companies.
See More
Does the Departure of the DOJ Antitrust Chief Signal a Win for Lobbyists?
Departure of Antitrust Chief: The antitrust chief of the Department of Justice is set to leave on Thursday, raising questions about the future of ongoing legal actions.
Impact on Live Nation Lawsuit: The departure is being closely monitored for its potential effects on the government's civil lawsuit against Live Nation Entertainment, a major player in the concert industry.
See More
Wall Street Tech Stocks Lose Over $500 Billion in Value
- Market Value Loss: On Thursday, Wall Street's tech sector saw over $500 billion wiped off market value across 10 major companies, indicating a sharp decline in investor confidence amid simultaneous pressures on both software and hardware sectors.
- Cisco Earnings Impact: Cisco's stock plummeted 11% despite reporting earnings of $1.04 per share, exceeding expectations, as the company’s gross margin guidance of 65.5%-66.5% fell short of the 68% consensus, highlighting the impact of rising hardware costs.
- Memory Shortage Risks: Lenovo confirmed mounting pressure on PC shipments, with CEO Yang Yuanqing stating that while unit pressures are expected, the company aims to maintain profitability, reflecting growing concerns over memory shortages in the industry.
- Software Sector Decline: The iShares Expanded Tech-Software Sector ETF dropped over 3% on Thursday, with the sector down over 20% year-to-date, illustrating the ongoing impact of fears surrounding AI disruption on software stock performance.
See More
Wall Street Market Dynamics Recap
- Market Dynamics: Wall Street experienced a decline on Thursday, particularly after the conclusion of the Morning Meeting, as the rotation from technology stocks to cyclicals continued, with industrials showing strong performance and driving portfolio results, indicating resilience in cyclical sectors.
- Stock Performance: Companies like Dupont, Dover, Honeywell, Linde, GE Vernova, and Eaton have shown extraordinary year-to-date performance, even as the S&P 500 has only seen slight gains, highlighting the significance of these cyclical stocks in the current market environment.
- Cisco Earnings Impact: Cisco's earnings report on Wednesday, despite a networking order growth exceeding 20%, saw shares drop over 10% on Thursday due to a dip in gross margins from rising memory prices, reflecting market concerns over its profitability.
- Apple Developments: Apple's shares fell more than 3% on Thursday, influenced by Cisco's warnings, and although iPhone sales remain strong, issues with the Siri upgrade testing and a delayed full launch could impact future market performance.
See More
Cisco Faces Rising Memory Costs, Leading to Stock Decline.
- Stock Performance: Cisco Systems' stock is experiencing a significant decline.
- Profit Margins Impact: The drop is attributed to concerns over rising memory costs affecting the company's profit margins.
See More
US PC Manufacturers' Stocks Decline as Lenovo Alerts on PC Shipment Challenges Due to Memory Shortage
PC Market Decline: The global PC market is experiencing a downturn, with significant drops in shipments reported by major manufacturers.
Lenovo's Warning: Lenovo has issued a warning regarding potential pressure on PC shipments due to a shortage of memory components, which could exacerbate the market's challenges.
See More
