|Bid||19.66 x 3200|
|Ask||19.67 x 4000|
|Day's Range||19.54 - 19.90|
|52 Week Range||15.93 - 24.17|
|Beta (3Y Monthly)||1.47|
|PE Ratio (TTM)||7.24|
|Earnings Date||Nov 26, 2019|
|Forward Dividend & Yield||0.70 (3.52%)|
|1y Target Est||19.95|
The technology sector is made up of companies that, among other things, manufacture consumer electronics and their components, develop software, and provide information technology (IT) services like cloud hosting. Below, we'll examine the top three stocks in the tech sector for best value, fastest earnings growth, and most momentum. HP announced in November that its board of directors had unanimously rejected an unsolicited proposal from Xerox to acquire the computer manufacturing company.
HP (HPQ) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Stocks finished slightly higher on Monday, carving out record closes for all three major equity benchmarks, as investors tried to gauge the progress on a phase one trade deal between U.S. and China. The S&P 500 was up 2 points, or less than 0.1%, to finish at 3,122. The Dow Jones Industrial Average picked up 31 points, or 0.1%, to end around 28,036, based on preliminary numbers. The Nasdaq Composite rose 9 points, or 0.1%, to end near 8,550. Investors were tugged by news reports that both indicated progress and potential setbacks to U.S.-China trade talks. Over the weekend, top negotiators held "constructive" discussions, according to Chinese state media outlet Xinhua. But a later report by CNBC suggested that without rolling back existing tariffs the outlook for a resolution looked dim. The Trump administration also issued a 90-day extension of a license allowing U.S. companies to keep doing business with Chinese telecom giant Huawei Technologies Co. In company news, shares of HP Inc. fell after it rejected a takeover offer from Xerox Holdings Corp.
The market appeared to welcome Washington's grant of an extension for U.S. companies to do business with Huawei since the Chinese telecommunications equipment maker was put on a U.S. blacklist in May. Shares of HP Inc fell 1.51% after the company rebuffed a $33.5 billion offer from Xerox Holdings Corp and said it was open to exploring a bid for the latter.
HP Inc. (NYSE: HPQ) rejected Xerox Holdings Corp (NYSE: XRX)'s $33-billion takeout offer Sunday, and experts are divided on what will occur next in the ongoing saga between two tech giants. Neither HP nor Xerox can say they've performed strongly recently, but a combination of the two could make sense in targeting corporate America, Russell Holly, senior editor of Android Central, told Yahoo Finance in an interview. Xerox could be interested in HP's hardware business, which is a "pretty solid" supplier of hardware to enterprises for cloud technologies, Holly said.
Wall Street's main indexes hit record highs on Monday as Washington's decision to grant an extension for U.S. companies to do business with China's Huawei helped ease some concerns around U.S.-China trade relations. The Chinese telecom equipment maker has been a bone of contention in the trade dispute, after the United States added it to an economic blacklist in May, citing national security concerns. The three main indexes had opened lower after CNBC reported that the mood in Beijing about a deal was pessimistic due to President Donald Trump's reluctance to roll back tariffs.
(Bloomberg Opinion) -- After HP Inc. rebuffed Xerox Holdings Corp.’s attempted $34 billion takeover attempt, don’t be surprised if the printer company’s next step is to say, “You don’t buy us, we buy you.” But don’t expect any offer to be generous.A counteroffer from its bigger rival may have been Xerox’s plan all along. The two companies have been involved in tentative talks about a combination at various times over the past few years. Xerox’s ploy, which would have involved taking on considerable debt, looks to have at least succeeded in bringing HP back to the negotiating table.The problem for Xerox Chief Executive Officer John Visentin is that HP holds most of the cards. Xerox is significantly smaller: Before takeover talks resurfaced, HP’s $28 billion market capitalization made it more than three times as large. The debt to fund the deal would have been secured against HP’s own free cash flow.That means HP could just as readily use its debt capacity to buy back its own shares. Repurchasing 20% of the stock at $23 a share would cost less than $7 billion, represent a premium to the offer from Xerox and still leave HP’s net debt well below twice its estimated 2020 earnings before interest, taxes, depreciation and amortization. Were Xerox the acquirer, debt at the combined entity would rise above four times Ebitda.In the letter rejecting the offer on Sunday, HP CEO Enrique Lores and Chairman Chip Bergh alluded to the possibility, saying they could deploy their “strong balance sheet for increased repurchases.” In essence, Xerox’s competing bidder for HP is HP itself. The Palo Alto, California-based company could generate just as much short-term value for its existing shareholders as the Xerox bid.The challenge for Xerox is to convince HP that a counteroffer makes sense. To do that, it will need to demonstrate either that a combination would generate healthier returns than HP would with a share buyback or that the companies will be stronger in the long term if they team up. Ideally, it does both.Xerox contends it has identified $2 billion in savings, most of which would likely come from firing a lot of people in administrative and R&D jobs. An offer from HP at a 30% premium to Xerox’s current share price would cost it close to $11 billion. Based on analysts’ earnings estimates, that might generate returns after three years of just more than 13%. That’s more than Xerox’s cost of capital but considerably less short-term value than HP could generate through a buyback. Even at a premium to its average price over the past year, returns would still be around only 15%.That means Xerox would have to make serious concessions on price, including accepting a bid that leans more heavily on stock than cash, with the expectation that shareholders benefit from the uplift. Investors might prefer that anyway: the two companies share nine of their top 20 shareholders in common.HP’s low debt is the reason Xerox could think of a takeover to begin with. It also gives the company strong reasons to walk away.To contact the author of this story: Alex Webb at email@example.comTo contact the editor responsible for this story: Daniel Niemi at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
U.S. stocks climbed to record highs on Friday on rising hopes of a trade agreement between the U.S. and China — but the records could keep coming.
The mood in Beijing about a deal was pessimistic due to President Donald Trump's reluctance to roll back tariffs, CNBC reported, citing a government source. Investors had turned optimistic over the weekend after Chinese state media said the two sides had held "constructive" trade talks, days after White House economic adviser Larry Kudlow said they were getting close to a trade deal.
Wall Street's main indexes were set for a subdued open on Monday after a report stoked fresh fears over the possibility of a U.S.-China trade deal. The mood in Beijing about a deal was pessimistic due to President Donald Trump's reluctance to roll back tariffs, which China believed the United States had agreed to, CNBC reported, citing a government source. Futures were higher ahead of the report after Xinhua over the weekend said that Washington and Beijing had held "constructive" talks.
Today at Autodesk University, HP Inc. announced HP ZCentral, a solution powering the next-gen of computing with the world’s first single sourced remote workstation solution. ZCentral centralizes high-end computer power in a single location, liberating power-users who work on graphics-intensive applications, and enabling remote, mobile and fluid workstyles.
HP stock has gained about 10% and those of Xerox around 7% since Nov. 5, when the first news reports surfaced on Xerox's $33.5 billion cash-and-stock offer to buy bigger rival HP. The printer industry has been in decline for years as growth in purely electronic communication cuts the need for printed letters and documentation.
Though HP says it's still open to some kind of deal with Xerox, the deal that Xerox proposed would carry major financial risks on top of all the execution and revenue growth risks any kind of merger between the firms would carry.
After HP declined Xerox’s $22 a share takeover offer, the software company responded saying the offer was too low and would not be in the best interest of share-holders. Yahoo Finance’s Alexis Christoforous and Dan Howley break down the latest developments on The Ticker.
Nov.18 -- HP Inc.’s board unanimously rejected Xerox Holdings Corp.’s unsolicited takeover proposal, saying the $22-a-share offer is too low. But HP did say it's still open to discussing a merger. Bloomberg's Liana Baker reports on "Bloomberg Markets."