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HP Inc. (HPQ), headquartered in California and valued at $35.6 billion by market cap, is a key technology company known for its expertise in personal computing, imaging, and printing solutions. The company’s diverse offerings serve a global customer base, including individual consumers, businesses, and government organizations.
Shares of this tech hardware giant have slightly outperformed the broader market over the past 52 weeks. HPQ has gained 36.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 36.4%. In 2024, HPQ's shares have climbed 24.1%, trailing SPX's 25.2% YTD gains.
Zooming in further, HPQ has surpassed the Technology Select Sector SPDR Fund's (XLK) 35.8% gains over the past 52 weeks and 23.4% return on a YTD basis.
On Aug. 28, HPQ reported its Q3 results, and its shares rose more than 2% in the following trading session. Its revenue of $13.5 billion, was better than the consensus of $13.4 billion. Its adjusted EPS stood at $0.83. For Q4, HPQ expects adjusted EPS to be between $0.89 and $0.99. The company estimates full-year adjusted EPS to be between $3.35 and $3.45.
For the current fiscal year, which ended in October, analysts expect HPQ's EPS to grow 3.4% year over year to $3.39. The company's earnings surprise history is mixed. It beat or met the consensus estimates in three of the last four quarters while missing on another occasion.
Among the 13 analysts covering the stock, the consensus rating is a “Hold,” a step down from “Moderate Buy” two months ago. That’s based on three "Strong Buy" ratings, nine "Holds,” and one "Strong Sell."
The configuration is slightly less bullish than two months ago, with five “Strong Buy” ratings on the stock.
On Oct. 1, Citigroup Inc. (C) downgraded HPQ to “Neutral” from “Buy,” maintaining its $37 price target. The downgrade reflects a more cautious outlook on the pace of PC recovery in the latter half of 2024. Additionally, Citi anticipates that artificial intelligence benefits for HP are likely further off, projected for 2026 or 2027. The firm also expects HP to face ongoing challenges in its printing segment, citing aggressive pricing pressures in hardware and a weakening Chinese macroeconomic environment, which may constrain positive estimate revisions.
While HP currently trades above its mean price target of $35.69, the Street-high price target of $42 implies a modest potential upside of 12.5% from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
