Shares of HP on the Downswing and 4 Hot Stocks Trading Today
Hewlett-Packard Company (NYSE:HPQ) shares have fallen although there is general strength in the tech sector after Jefferies decided to downgrade shares to Underperform from Hold earlier this morning. Jefferies analyst Peter Misek is concerned that HP’s fiscal 2013 guidance could miss consensus expectations, possibly coming either at HP’s analyst meeting on October 3 or as part of HP’s next earnings release. According to Misek, HP seems to be positioned to enter into the tablet and smartphone market, which is strategically logical but risky. The analyst believes that there are headwinds for the company’s personal computer, service, and printer businesses, and doesn’t think that the release of Microsoft’s (NASDAQ:MSFT) Windows 8 will be a catalyst for shares. Misek gives the shares a $14 price target, which has fallen from its previous $17. Today, JPMorgan stated in its own note to investors that the company is currently facing near-term challenges, and the firm predicts that HP’s FY13 outlook may drive consensus earnings estimates lower $4.00. Consensus for HP’s FY13 EPS is now at $4.20, reports First Call. Shares of Hewlett-Packard dropped 10c, or 0.56 percent, to $17.01 in early-morning trading.
Google Inc. (NASDAQ:GOOG): Kang Tae-jin, who is the SVP of Samsung’s (SSNLF) Media Solution Center, claims that Samsung intends to buy mobile content providers in an effort to compete with Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL) ,and Google (NASDAQ:GOOG) in the digital music market, according to Reuters. There are also those who think that Pandora (NYSE:P) or privately-held Spotify may become takeover targets for the firm.
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Boeing Co. (NYSE:BA): The EU asked the WTO for the right to impose annual trade sanctions worth $12B on the U.S. in retaliation for illegal subsidies to Boeing (NYSE:BA), reports Reuters. The U.S. said it met a compliance deadline that expired last Sunday that the EU rejected.
Alpha Natural Resources, Inc. (NYSE:ANR) reaffirmed its 2012 guidance that was first published in its August 8 earnings release.
Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN) announced positive proof-of-concept results with ACH-3102, which is a second-generation pan-genotypic NS5A inhibitor under development for the treatment of chronic hepatitis C viral infections, or HCV. A single-dose of ACH-3102 to genotype, or GT, 1a HCV-infected subjects showed a mean maximum 3.74 log10 reduction in HCV RNA. Significant reductions in HCV RNA were seen in subjects with resistant variants at baseline, including L31M and Y93C variants. This data suggests that combined with safety and tolerability results from the Phase 1a trial in healthy subjects evaluating up to 14 days of ACH-3102, Achillion has begun its pilot Phase 2 clinical trial evaluating ACH-3102 together with ribavirin to treat patients with chronic GT 1b HCV.
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