HPQ provides personal computing printers and related supplies. It is a cyclical business and prone to consumer demand. It has consistently traded at 9x P/E giving it a fair value of around $40. It is a relatively safe business so it doesn't deviate much from the valuation. Earnings are expected to be released today after hours and we will update this post accordingly.

On the technical side it is approaching a buy point at $27-$28 and has resistance around $35. I currently own a small position on HPQ and will see how the earnings play out. Before the close today I might look into options for some hedging strategies.

Update: 8/31/22
HPQ reported in line EPS but missed revenue and provided guidance below expectations. It expects business will slow down for the next couple of quarters. With this new information we lower our fair value to $34.