When I use the term “bargain stock,” I'm talking about a stock that's simply being overlooked by the masses, that looks cheap by some measure, and that still has what I believe to be solid future growth potential.

Today I want to look at Hewlett Packard (HPQ). The company is one we all know (and if you don’t, hang your head in shame.)

HP has bounced back and is way off its lows, but it's really not getting anywhere near as much loving as I think it should. In fact, there are several things that intrigue me about it right now:

1. The computing giant is trading right around 10 times this year’s estimate. That’s darn cheap -- especially since it’s expected to grow 11% per annum in the next 5 years.

2. Over the last month or so, estimates have moved higher, which piques my interest. Estimates in the last 30 days have gone from $3.71 to $3.74 for this year, and from $4.03 to $4.09 for next year.

3. It’s met or beaten expectations in every one of the last 4 quarters. Call me a loon but I’d much rather bet on a company that’s making its numbers than one that’s not. As an aside, a little company you may have heard of called Dell (DELL) has beaten estimates in 3 of the last 4 quarters.

4. Data shows a director, Robert Ryan, bought 7,500 shares at $34.64 in May -- that’s a lot of coin. And Ryan is no dummy. The HP website explains:

“[Ryan has] served as Senior Vice President and Chief Financial Officer of Medtronic, Inc. (MDT), a medical technology company, from 1993 until his retirement in May 2005. He also is a director of UnitedHealth Group Incorporated (UNH), General Mills, Inc. (GIS), The Black and Decker Corporation and Citigroup, Inc. (C).”

5. In its second quarter, revenue was down from the year before. But a few years out (as economic conditions pop back), its revenue and EPS could go much higher.

6. It sends a great message when a company repurchases its stock. With that in mind, check out this line from the second-quarter earnings release: “HP utilized $801 million of cash during the second quarter to repurchase approximately 24 million shares of common stock in the open market.”

7. While we're on that release, check out the nearly $13 billion in cash/equivalents/short-term investments on its balance sheet. That could open a lot of potential doors for the company. (Maybe buybacks, dividends, acquisitions?)

8. Check out that dividend history.

So there you have it folks -- my bullish case.

Quick sidebar: Anyone else out there think Kim Jong Il, the North Korean leader, deserves a swift kick in the pants? I’d pay to do it.

Stay tuned. Next week -- same time, same place -- I’ll be back with another “Bargain Bin” pick. Have a great day!