Tech hardware giant Hewlett-Packard Company (NYSE:HPQ) has been blazing a steady path higher since last October, with the shares boasting a healthy year-to-date gain of 21%. By comparison, the broader S&P 500 Index (SPX) is up less than 6% in 2014. Currently, as HPQ meets up with a key technical level, the stock could be poised to embark on the next leg of its longer-term uptrend.
Specifically, HPQ is trading just pennies away from its rising 40-day moving average. This trendline has played a significant role in the recent past, according to Schaeffer's Senior Quantitative Analyst Rocky White.
After controlling for several variables -- including the number of sessions the stock stayed above the trendline before meeting back up with it -- Rocky found that HPQ's last nine encounters with its 40-day moving average have generally resulted in gains for the stock during the ensuing five-day and 21-day time frames. Five-day returns have been positive 67% of the time, with an average advance of 2.4%; meanwhile, 21-day returns have been positive 78% of the time, with HPQ adding 5.1%, on average.
As Hewlett-Packard Company (NYSE:HPQ) continues to climb the charts, the stock could benefit from a round of bullish analyst notes. Despite the equity's outperformance of late, 55% of brokerage firms tracking HPQ maintain a "hold" or "sell" rating. Plus, the average 12-month price target of $36.11 is just a chip-shot away from the stock's current perch at $33.88. Going forward, any upgrades or price-target hikes from this group could help draw more buyers to the table for HPQ.
The Case for Big Moves in IWM and QQQ
Featured Partners: AOL DailyFinance
© 2014 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242
Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email: firstname.lastname@example.org
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
Market Data provided by QuoteMedia.com | Data delayed 15-20 minutes unless otherwise indicated.