Validea's Leading IT Stocks According to Joel Greenblatt - 8/18/2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 18 2025
0mins
Should l Buy HPQ?
Source: NASDAQ.COM
Top Rated IT Stocks: Validea's Earnings Yield Investor model highlights HP Inc., Western Digital Corp., MicroStrategy Inc., Cognizant Technology Solutions Corp., and Leidos Holdings Inc. as top-rated stocks based on Joel Greenblatt's investment strategy.
HP Inc. Overview: HP Inc. received a 100% rating, indicating strong interest due to its fundamentals in personal computing and printing solutions across various segments.
Western Digital Corp. Overview: With a 90% rating, Western Digital specializes in data storage devices and solutions, catering to diverse markets including cloud and consumer sectors.
MicroStrategy and Cognizant Ratings: Both MicroStrategy and Cognizant Technology Solutions scored 80%, focusing on software development and technology services, with MicroStrategy notably investing heavily in Bitcoin.
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Analyst Views on HPQ
Wall Street analysts forecast HPQ stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for HPQ is 25.30 USD with a low forecast of 20.00 USD and a high forecast of 30.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
1 Buy
10 Hold
3 Sell
Hold
Current: 19.150
Low
20.00
Averages
25.30
High
30.00
Current: 19.150
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.
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- Disappointing Financials: For Q4 2025, PayPal's online branded checkout saw only a 1% year-over-year increase in transaction volume, indicating weak consumer spending during the holiday season, while transactions per active account fell by 5%, highlighting significant challenges in retail.
- Intensifying Competition: PayPal faces fierce competition from tech giants like Apple Pay and Google Pay, which dominate distribution through smartphone integration, exacerbating the pressure on PayPal's market position.
- Investor Confidence Shaken: Although PayPal paid its first-ever quarterly dividend of $0.14 per share totaling $130 million in Q4 2024, management's low guidance for adjusted earnings per share in 2026 failed to boost shareholder confidence, raising questions about capital allocation decisions.
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- Meeting Schedule: The annual meeting is scheduled for April 16, 2026, and HP will provide important information to all stockholders of record, ensuring they are well-informed about the matters to be discussed, which promotes transparency and engagement.
- Information Access for Shareholders: HP will make available crucial information related to the meeting, urging stockholders to review it once released, which aims to improve their understanding and involvement in the company's decision-making process.
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- Investment Value Discussion: Analysts debate whether PayPal holds deep value, as the company faces competitive pressures and market volatility, Lores's leadership may present new growth opportunities that investors should closely watch.
- Market Reaction Analysis: As of February 5, 2026, PayPal's stock price rose slightly by 0.30%, indicating initial market confidence in the new leadership, but future performance remains to be seen, particularly regarding strategic execution.
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See More
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- CEO Change: In response to these execution issues, PayPal announced a change in its CEO, aiming to revitalize the company's strategic direction and improve performance, which may affect future leadership stability.
- Analyst Downgrades: Several analyst firms downgraded PayPal's ratings and lowered price targets, reflecting concerns about the company's future growth potential, which could lead to further investor withdrawals.
- Stock Price Reaction: Following the disappointing earnings and management changes, PayPal's stock price has continued to decline, indicating a pessimistic sentiment in the market regarding the company's short-term outlook, potentially affecting its position in the highly competitive payments industry.
See More
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- Market Share Decline: Analysts noted that PayPal's branded checkout growth slowed to just 1%, a four-point drop year-on-year, suggesting a weakening competitive position that necessitates increased investment in consumer loyalty programs and merchant incentives.
- CEO Change Impact: The announcement of CEO Alex Chriss's departure, with CFO/COO Jamie Miller stepping in as interim CEO, raises concerns about the company's strategic direction amid execution challenges that may hinder future performance.
- Bleak Outlook: PayPal's disappointing outlook for fiscal 2026, coupled with expectations of declining transaction margins, highlights the company's struggles to adapt to changing market dynamics and consumer behaviors.
See More
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See More
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- Executive Change: PayPal's board has decided to fire CEO Alex Chriss and appoint HP's Enrique Lores, effective March 1, reflecting dissatisfaction with current performance and potentially undermining investor confidence.
- Disappointing Financials: For Q4 2025, PayPal's online branded checkout saw only a 1% year-over-year increase in transaction volume, indicating weak consumer spending during the holiday season, while transactions per active account fell by 5%, highlighting significant challenges in retail.
- Intensifying Competition: PayPal faces fierce competition from tech giants like Apple Pay and Google Pay, which dominate distribution through smartphone integration, exacerbating the pressure on PayPal's market position.
- Investor Confidence Shaken: Although PayPal paid its first-ever quarterly dividend of $0.14 per share totaling $130 million in Q4 2024, management's low guidance for adjusted earnings per share in 2026 failed to boost shareholder confidence, raising questions about capital allocation decisions.
See More
HP Inc. Sets Date for 2026 Annual Shareholder Meeting
- Shareholder Meeting Date: HP Inc.'s board has set February 17, 2026, as the record date for its annual shareholder meeting, ensuring that all stockholders on record can participate and vote on key matters, thus enhancing corporate governance.
- Meeting Schedule: The annual meeting is scheduled for April 16, 2026, and HP will provide important information to all stockholders of record, ensuring they are well-informed about the matters to be discussed, which promotes transparency and engagement.
- Information Access for Shareholders: HP will make available crucial information related to the meeting, urging stockholders to review it once released, which aims to improve their understanding and involvement in the company's decision-making process.
- Company Overview: As a global technology leader, HP Inc. is redefining the Future of Work, operating in over 180 countries and delivering innovative AI-powered devices, software, and services that drive business growth and professional fulfillment.
See More
Analysis of PayPal's New CEO Transition
- Leadership Change Impact: Former HP CEO Enrique Lores takes over at PayPal, potentially bringing a new strategic direction, yet facing skepticism about his adaptability, prompting investors to monitor his effectiveness in addressing current company challenges.
- Investment Value Discussion: Analysts debate whether PayPal holds deep value, as the company faces competitive pressures and market volatility, Lores's leadership may present new growth opportunities that investors should closely watch.
- Market Reaction Analysis: As of February 5, 2026, PayPal's stock price rose slightly by 0.30%, indicating initial market confidence in the new leadership, but future performance remains to be seen, particularly regarding strategic execution.
- Future Outlook: With Lores's appointment, PayPal may adjust its business strategy to respond to industry changes, and investors should pay attention to its innovative initiatives in the digital payments space and market reactions.
See More
PayPal Q3 Earnings Miss and CEO Change Prompt Analyst Downgrades
- Earnings Decline: PayPal's Q3 earnings report revealed that revenue fell short of market expectations, leading to execution challenges that have negatively impacted investor confidence and caused further declines in share price.
- CEO Change: In response to these execution issues, PayPal announced a change in its CEO, aiming to revitalize the company's strategic direction and improve performance, which may affect future leadership stability.
- Analyst Downgrades: Several analyst firms downgraded PayPal's ratings and lowered price targets, reflecting concerns about the company's future growth potential, which could lead to further investor withdrawals.
- Stock Price Reaction: Following the disappointing earnings and management changes, PayPal's stock price has continued to decline, indicating a pessimistic sentiment in the market regarding the company's short-term outlook, potentially affecting its position in the highly competitive payments industry.
See More
PayPal Reports Q4 Earnings Miss, Shares Decline
- Earnings Miss: PayPal's Q4 earnings came in at $1.23 per share, falling short of the $1.29 expected by analysts, with only a 3% growth compared to the projected 7%-10%, indicating significant competitive pressure.
- Market Share Decline: Analysts noted that PayPal's branded checkout growth slowed to just 1%, a four-point drop year-on-year, suggesting a weakening competitive position that necessitates increased investment in consumer loyalty programs and merchant incentives.
- CEO Change Impact: The announcement of CEO Alex Chriss's departure, with CFO/COO Jamie Miller stepping in as interim CEO, raises concerns about the company's strategic direction amid execution challenges that may hinder future performance.
- Bleak Outlook: PayPal's disappointing outlook for fiscal 2026, coupled with expectations of declining transaction margins, highlights the company's struggles to adapt to changing market dynamics and consumer behaviors.
See More
Former PayPal President Critiques Company Culture
- Critique of Financial Optimization: Former PayPal President David Marcus publicly criticized the company's shift from product-led to financially-led leadership, claiming this change has hollowed out the company's innovative spirit and weakened its market competitiveness.
- BNPL Feature Failure: Marcus highlighted PayPal's failure to transform its Buy Now, Pay Later service into a core consumer relationship, allowing competitors to capture market share, which directly contributed to a mere 1% growth in branded checkout performance.
- Leadership Challenges: Despite the board's call for greater discipline and faster execution, Marcus expressed skepticism about the new leadership's ability to navigate the fintech landscape, noting that their background may not align with the needs of a payments company.
- Significant Stock Decline: In 2026, PayPal's stock has dropped by 28.57%, with a 37.86% decline over the past six months and a staggering 53.41% drop over the year, indicating ongoing weakness in the market and declining investor confidence.
See More
