Hewlett-Packard Looks Very Attractive (HPQ)

Earlier today, legendary investor Bill Miller of Legg Mason, said that large cap stocks are at the cheapest levels in 60 years compared to bond yields. He called the current environment "a once in a lifetime opportunity." If you agree with Miller's line of thinking, now is an excellent time to buy world-class businesses at reasonable valuations. One such stock that fits these parameters is Hewlett-Packard HPQ. The technology behemoth has gotten just too cheap on a valuation basis. The shares trade at a trailing P/E of 12.92, a forward P/E of 9.12, and a PEG ratio of 1. Essentially, investors have an opportunity to buy one of the best businesses in the world at less than 10 times estimated earnings. That simply does not happen everyday. Furthermore, HPQ offers a 0.70% dividend yield and continues to have a fairly attractive growth profile. The company grew revenues from $91.3 billion to $114.18 billion between 2006 and 2009. The company has managed to do this despite difficult economic conditions. Sooner or later, technology is going to become a tremendous growth area again. As a result of the financial crisis, corporations have been holding back on technology and IT spending. Eventually there will be a massive upgrade cycle. When that happens, HPQ investors who get in at these levels will be richly rewarded.