HP(US:HPQ) The Motley Foolยท2024-10-07 09:12Core Viewpoint - MicroStrategy, Micron Technology, and HP are identified as undervalued tech stocks with significant growth potential despite current market challenges [1]. Group 1: MicroStrategy - MicroStrategy transitioned from a slow-growth data software provider to a Bitcoin hoarder, holding 226,500 Bitcoins valued at $13.8 billion, which constitutes 37% of its enterprise value of $37.2 billion [2]. - Analysts predict that MicroStrategy's core software business will see minimal revenue growth and incur losses, while the company may take on more debt and issue shares to fund additional Bitcoin purchases [2][3]. - The stock appears expensive at 78 times this year's sales, but could be undervalued if Bitcoin prices rise significantly in the future [3]. Group 2: Micron Technology - Micron is a leading manufacturer of DRAM and NAND memory chips, known for producing denser and more power-efficient products compared to competitors [4]. - The company faced a 49% revenue decline in fiscal 2023 due to a downturn in PC shipments and the end of the 5G smartphone upgrade cycle, but revenue rebounded by 62% in fiscal 2024 as markets stabilized [4]. - Analysts forecast a 52% revenue increase in fiscal 2025, with adjusted EPS rising nearly sevenfold, making Micron's stock attractive at just 11 times forward earnings [5]. Group 3: HP - HP is a major producer of PCs and printers, experiencing growth during the pandemic, but faced revenue declines in fiscal 2022 and 2023 due to weakened consumer sales and macroeconomic challenges [6]. - The company has implemented cost-cutting measures and share buybacks, resulting in an 8% increase in adjusted EPS in fiscal 2022, followed by an 18% decline in fiscal 2023 [6]. - Despite a gloomy outlook with flat revenue expected for fiscal 2024 and only a 3% growth in adjusted EPS, HP's stock is considered undervalued at 10 times forward earnings, with a forward dividend yield of 3.1% [6][7].