[at TheStreet] – Consistently, one of the more popular stocks people enter into their stock options watchlist at Stock Options Channel is Hewlett-Packard Co (NYSE:HPQ). So this week we highlight one interesting put contract, and one interesting call contract, from the January 2015 expiration for HPQ. The put contract our YieldBoost algorithm identified as particularly interesting, is at the $25 strike, which has a bid at the time of this writing of $1.54. Collecting that bid as the premium represents a 6.2% return against the $25 commitment, or a 7% annualized rate of return.
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Hewlett-Packard Company (HPQ), with a current market cap of $56.71B, began trading this morning at $29.26.
Today’s price range has been between $28.82 and $29.85 per share and has traded between $19.07 and $30.71 over the past 12 months.
HPQ shares are currently priced at 8.02x this year’s forecasted earnings, which makes them relatively inexpensive compared to the industry’s 29.23x forward p/e ratio.
And for those looking to make a return holding the stock, the company pays shareholders $0.58 per share annually in dividends, yielding 1.90%.
Consensus earnings for the current quarter by the 28 sell-side analysts covering the stock is an estimate of $0.88 per share, which would be $0.01 better than the year-ago quarter and a $0.01 sequential decrease. Investors should also note that the full-year EPS estimate of $3.71 is a $0.15 better when compared to the previous year’s annual results.
The quarterly earnings estimate is predicated on a consensus revenue forecast of $27.40 Billion. If reported, that would be a 0.65% decrease over the year-ago quarter.
Recently, Argus upgraded HPQ from Hold to Buy (Feb 24, 2014). Previously, Mizuho upgraded HPQ from Underperform to Neutral.
Given all the information above, we should disclose to readers that the average price target is $31.78, which is 8.61% above than it opened this morning.
Hewlett-Packard Company (NYSE:HPQ) and its subsidiaries provide products, technologies, software, solutions and services to individual consumers, small-and medium-sized businesses (SMBs) and large enterprises, including customers in the government, health and education sectors worldwide.
Tag Helper ~ Stock Code: HPQ | Common Company name: Hewlett-Packard | Full Company name: Hewlett-Packard Company (NYSE:HPQ) .