Hewlett Packard (HPQ) is making its shareholders very happy today as its stock price is way up after it released its latest quarterly earnings report.  In that report, the company also updated its FY14 earnings guidance. The company provided EPS guidance of $3.63-3.75 for the period, compared to the Thomson Reuters consensus EPS estimate of $3.71.

According to our long term technical analysis system, Hewlett Packard has broken through its “value” line as well as its “growth” line and now looks like it may be setting itself up for some open field running to the upside. For those of you who are unfamiliar with our technical analysis system, you can read an introduction by going here.

From a quantitative analysis point of view we have the following current results for Hewlett Packard:

For those of you who are unfamiliar with the type of quantitative analysis we do at Conservative Equity Investment Advisors, I encourage you to read an introduction by going here.  It is always a good sign when the quantitative analysis confirms the findings of our technical analysis, which it clearly does in this case.  Not only is Hewlett Packard selling at -69% discount to our fully valued price, but it is also selling at a -54% discount to our buy price.   It is also very rare to find all three of our price to free cash flow ratios having almost identical results. In conclusion the best decision that Hewlett Packard’s board of directors could have made was  in picking Meg Whitman as their CEO, as she is a brilliant manager.