HP Inc (HPQ) stock opened higher on Thursday and went on to touch a new yearly high of $25.78, which is also the company’s second all-time best. Experts believe that the company’s venture into the manufacturing industry could give it another area for revenue generation.
The stock had reached a record peak on March 9 this year, but it leveled off the gains in just a month. Since April, the shares have shown a consistent growth to Thursday’s level. The stock has climbed more than 22% year to date.
Investors who bought HP shares a year ago at $19.60 are now set to get a handsome return of 31%. But don’t sell your shares so fast. Market pundits believe the company now offers a compelling combination of growth and value after its upbeat third-quarter earnings.
In the recent third-quarter, HP’s earnings jumped 26% as double-digit growth in the PC and Printer divisions drove the top line higher. Revenue increased 12%, helped by strong performance from its personal systems division and printing segment. Meanwhile, the growth of commercial hardware units contributed a huge portion to the 12% increase in the total hardware units, despite a slight rise in consumer hardware units.
For the fiscal year 2018, the company raised its guidance for non-GAAP EPS to the range of $2.00 to $2.03 from the prior estimate of $1.97 to $2.02.
Earlier this month, HP unveiled its first printer that can churn out 3D metal parts called Metal Jet printer. This is the personal computer maker’s first step into the $12 trillion manufacturing industry and its revamp from the core PC and paper printer businesses. This move could open up new avenues in the automobile, industrial and medical equipment fields.
Experts believe that the technology will aid manufacturing companies in preparing parts without factory tools. The HP Metal Jet can reportedly make more parts at a cheaper price than the existing three-dimensional metal objects machine that is already available in the market.
The stock is trading up 1.88% at $25.74 at 2.45 pm EDT. The stock is likely to achieve new heights in the near term as the shares offer a compelling growth and value.