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(Source: TC2000.com)
Hewlett Packard (HPQ) and NortonLifeLock (NLOK) have little in common with one being a hardware company and the other being a cybersecurity software company, but both do share one trait, severely discounted valuations to their peer group. In NLOK’s case, the company trades at just 14x next year’s earnings estimates, while HPQ trades less than 8x this year’s estimates. While neither company is an industry leader by any means, these are very reasonable valuations, baking in a significant margin of safety if we do see further pullbacks. As a bonus, both companies also pay ~2.0% plus annual dividend yields, offering investors additional returns from a total return. Let’s take a closer look below:
