HP Inc. (HPQ) Down 5.0% — Pull the Trigger on a Sell?
Key Points
HP Inc. (HPQ) is under pressure in the latest session, retreating 4.99% to close at $21.05, down $1.10 from the prior close of $22.15. The stock is sliding on relatively light activity, with roughly 6.8 million shares changing hands versus a 90‑day average volume of about 12.3 million, suggesting today’s sell-off is occurring without heavy participation. With this latest move, HPQ is losing ground toward the bottom of its 52‑week range and now trades just below its recent 52‑week low of $21.21, marking a sharp reversal from earlier levels.
The stock’s current quote also leaves it significantly below its 52‑week high of $35.28, reached on Feb. 24, 2025, putting HPQ more than $14 off that peak and highlighting the extent of recent downside pressure. In contrast, several large-cap sector peers such as Arista Networks (ANET), Dell Technologies (DELL), Western Digital (WDC), Motorola Solutions (MSI), and Keysight Technologies (KEYS) have generally shown more resilience over the past year, leaving HPQ lagging the group and reinforcing the impression of a name facing persistent headwinds. The combination of a steep one-day percentage drop, a sizeable gap from its 52‑week high and trading near fresh lows underscores a stock that has been steadily losing ground and remains firmly under pressure in the current market environment.
Why HP Inc. Price is Moving Lower
The recent slide in HP Inc. shares is being driven largely by mounting fundamental and sentiment headwinds that are overpowering modest operational growth. The stock has broken to fresh 52-week lows in the low-$21 range and is down roughly a third over the past year, even as broader markets have moved higher. Analysts have turned more cautious, with multiple firms cutting price targets and assigning more defensive ratings as they factor in memory cost inflation, a weak outlook for PC volumes and a projected 3.9% decline in FY2026 EPS. Earnings estimates for that year have been marked down by nearly 10% over the past two months, reinforcing the view that profitability is under pressure despite incremental revenue gains.
Heavy downside positioning in the options market and bearish technical signals are amplifying this weakness. Trading activity has featured elevated put volume—roughly triple typical levels and concentrated in near-dated expirations—suggesting investors are actively hedging or speculating on further declines. This negative positioning has persisted even as HP showcased new AI-enabled EliteBook X G2 systems and HyperX/OMEN solutions at CES 2026. While latest-quarter revenue rose 5.1% sequentially to $14.64 billion and grew 4.16% year over year, the market appears focused on thin profit margins near 4.6%, rising component costs and a challenging demand backdrop. In that context, new product launches and a comparatively low earnings multiple have not been enough to offset concerns over earnings durability and competitive pressures relative to other large hardware names.
What is the HP Inc. Rating - Should I Sell?
Weiss Ratings assigns HPQ a C rating. Current recommendation is Hold. While this is an upgrade as of 8/29/2025, it still signals a stock with only average risk/reward and meaningful reasons for caution. In other words, the recent improvement is not enough to justify complacency from investors who are concerned about downside risk or opportunity cost.
The C rating sits on top of several mixed — and in some cases troubling — sub-indices. The Weak Total Return Index is a clear warning sign: Even with a forward P/E of 8.39 and revenue growth of 4.16%, shareholders have not been rewarded adequately for the risk taken. A Fair Growth Index and Fair Solvency Index indicate that HP Inc. is not in distress, but it is also not delivering the kind of financial momentum or balance-sheet strength that could offset a period of market or sector stress.
HPQ’s Excellent Efficiency Index and Good Dividend Index show capable management and some income appeal, yet these strengths have not translated into superior overall performance. The Weak Volatility Index means investors have been exposed to price swings that have not come with commensurate upside. That combination — efficiency and dividends on one side, but weak risk/return characteristics on the other — is a classic setup for value traps in mature technology names.
Relative to peers such as Arista Networks, Inc. (ANET, C+), Dell Technologies Inc. (DELL, C+), and Western Digital Corporation (WDC, C+), HPQ lags on an overall basis. Those higher-rated stocks offer a somewhat better risk-adjusted profile within the same broad industry, reinforcing why HPQ remains a cautious Hold rather than a Buy.
About HP Inc.
HP Inc. (HPQ) is a global information technology company focused on personal computing systems, printing hardware and related solutions. Operating within the Technology Hardware and Equipment industry, the company’s core business revolves around manufacturing and selling laptops, desktops, workstations, monitors, and other PC devices aimed at consumers, small and medium-sized businesses, and large enterprises. In personal systems, HP Inc. relies heavily on a broad but largely commoditized portfolio, where product differentiation can be limited and pricing pressure intense across regions and customer segments.
The company is also a major player in printing, offering office and home printers, multifunction devices, and large-format printing systems, along with associated supplies such as ink and toner cartridges. This segment is built around a traditional razor-and-blades model that depends on recurring consumables sales, a structure that is increasingly challenged by third-party alternatives, changing workplace printing habits, and ongoing digitization. HP Inc. supplements its hardware with a range of services, including managed print services, device-as-a-service offerings, and basic support and warranty extensions, but these remain closely tied to hardware demand and refresh cycles.
HP Inc. competes against other large global hardware vendors, often on cost, distribution reach, and brand familiarity rather than clear technological leadership. Its presence in both consumer and commercial channels provides scale, yet also exposes the company to intense competition and rapid shifts in end-user preferences, especially as mobility, cloud computing, and longer device lifecycles continue to reshape the information technology hardware landscape.
Investor Outlook
With a C (Hold) Weiss Rating, HP Inc. (HPQ) warrants close monitoring rather than aggressive positioning, especially if broader Information Technology sentiment weakens or earnings disappoint. Investors may want to watch for further rating changes, any deterioration in risk factors, and how the stock behaves around recent trading ranges relative to sector peers. See full rankings of all C-rated Information Technology stocks inside the Weiss Stock Screener.
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