HPQ Stock Analysis — HP Inc.
Sector: Tech hardware
AI Verdict
HPQ trades at 7.1x next year's earnings while analysts expect nearly 15% EPS growth—this is cheap for the growth on offer, but the lack of AI or software moat means the low valuation reflects real competitive fragility.
Competitive Moat
HP Inc. dominates the global PC and printer markets through massive scale, entrenched distribution, and recurring revenue from printer supplies. Its moat is defensible mainly due to its supply chain leverage and sticky enterprise contracts, but it lacks proprietary AI or software lock-in.
Summary
HPQ trades at just 7.1x forward earnings with analysts expecting a 14.8% EPS bump, making it a value outlier in tech hardware.
Where It Stands
HPQ is down -23.32% over the past year, with an RSI of 54.6 indicating neutral momentum, and trades at a 7.1x forward P/E versus the sector median of 25x.
Key Metrics
- RSI: 54.6 — Neutral
- Trailing P/E: 8.2x
- Forward P/E: 7.1x
- PEG Ratio: 0.42
- Earnings Growth: +0.1%
- Revenue Growth: +0.0%
- Market Cap: $19.8B
- Dividend Yield: 0.05%
- 1-Year Return: -23.32%
- 52-Week High: $29.55
- 52-Week Low: $17.56
Analyst Consensus
3 Buy · 12 Hold · 11 Sell (26 analysts)
Bull Case
With a forward P/E of 7.1x and 14.8% expected EPS growth, HPQ is priced cheaply relative to both its own growth and the tech hardware sector.
Bear Case
If HPQ's P/E were to re-rate down to 6x (closer to deep value territory), the stock could lose another 15% from here even before considering business risk.
Catalyst to Watch
Watch for quarterly earnings surprises or major PC market share shifts, as either could quickly alter the growth and value narrative.