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Hewlett-Packard Trades below Moving Averages in October

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Shareholder returns and stock trends

Hewlett-Packard (HPQ) generated investor returns of -24.8% in the trailing-12-month period and 6.5% in the trailing-one-month period. In comparison, it generated returns of 46.0% in 2014 and -32.8% YTD (year-to-date). The company’s share price fell -4.0% in the trailing-five-day period.

In comparison, Apple (AAPL) and EMC (EMC), peer companies in the Technology, Hardware, and Storage subsector, generated returns of 8.3% and 6.2%, respectively, in the trailing-one-month period.

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Moving averages

On October 30, 2015, Polycom closed the trading day at $26.96. Based on this figure, here’s how the stock fared in terms of its moving averages:

  • 6% below its 100-day moving average of $28.91
  • 1% below its 50-day moving average of $27.40
  • 5% below its 20-day moving average of $28.43

Moving average convergence divergence and the relative strength index

The MACD (moving average convergence divergence) is the difference between the short-term and long-term moving averages of a company. HP’s 14-day MACD is 0.12. This positive figure indicates an upward trading trend.

The company’s 14-day RSI (relative strength index) is 42, which shows that the stock is slightly oversold.[1.Generally, if the RSI is above 70, it indicates that a stock is overbought. An RSI figure of below 30 suggests that a stock has been oversold.]

Analyst recommendations

Out of 32 analysts covering the stock, 18 have “buy” recommendations on it, two have “sell” recommendations, and 12 have “hold” recommendations. The analyst stock price target for the company is $35.46, with a median target estimate of $36. HP is trading at a discount of 25% to median analyst estimates.

If you’re optimistic about Hewlett-Packard, you may consider investing in the Technology Select Sector SPDR ETF (XLK) and the iShares US Tech ETF (IYW), which invest 1.3% and 2.1% of their holdings, respectively, in the company.

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