Palo Alto, California-based HP Inc. (HPQ) provides personal computing, printing, 3D printing, hybrid work, gaming, and other related technologies in the United States and internationally. The company has a market cap of $24.6 billion and operates through three segments: Personal Systems, Printing, and Corporate Investments, and offers commercial and consumer desktops and notebooks, workstations, thin clients, retail point-of-sale systems, displays, software, and more.
HPQ stock has lagged behind the broader market over the past year, growing 7% compared to the S&P 500 Index’s ($SPX) 16.9% surge. However, in 2026, the stock has grown by nearly 20.6%, outperforming the SPX’s 8.7% rise.
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Focusing on its industry benchmark, the State Street Technology Select Sector SPDR ETF (XLK) has risen 32.8% over the past year, outperforming the stock. In 2026, XLK has grown 22.1% and has also rallied the stock.
www.barchart.com HPQ’s underperformance over the past year can be traced back to its not-so-lucrative fundamentals. Analysts and investors are cautious of the stock as the demand for its products is forecasted to shrink, and its sales figures are expected to remain flat over the course of the next 12 months. Moreover, the company’s sales declined by 1.2% annually over the last five years, showcasing some end-market challenges for its products and services. Finally, HPQ’s incremental sales over the last two years showcased lower profitability, with its EPS remaining flat.
However, the company’s recent outperformance can be attributed to the massive AI-led computer design and growing capabilities shift. With companies like Nvidia Corporation (NVDA) announcing the release of chips that bring advanced AI capabilities to Windows PCs, HPQ’s own brand of personal computers is expected to reap from this paradigm shift in the tech world as AI-personal computing starts becoming the norm.
For the current year, which ends in October, analysts expect HPQ’s EPS to fall 4.5% to $2.98 on a diluted basis. The company met or surpassed the consensus estimate in each of the last four quarters.
Among the 15 analysts covering HPQ stock, the consensus is a “Hold.” That’s based on one “Strong Buy” rating, nine “Holds,” one “Moderate Sell,” and four “Strong Sells.”
www.barchart.com The configuration has remained unchanged over the past month.
On July 22, J.P. Morgan analyst Joseph Cardoso initiated a “Hold” rating on HPQ stock and set a target price of $27.
HPQ’s mean price target of $24.54 is below the current market price. Its Street-high target of $34 implies a robust 26.6% upside from current levels.
On the date of publication, Aritra Gangopadhyay 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.
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