/HP%20Inc%20logo%20and%20stock%20chart-by%20T_Schneider%20via%20Shutterstock.jpg)
Palo Alto, California-based HP Inc. (HPQ) is a leading provider of PCs and other hardware devices, including printers, hard disks, and more. Valued at $24.5 billion by market cap, HP’s operations span the Americas, Indo-Pacific, and EMEA.
The PC designer has significantly underperformed the broader market over the past year. HP stock has plunged 8.1% over the past 52 weeks and 20.6% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 10.2% gains over the past year and 3.9% dip in 2025.
Narrowing the focus, HP has also lagged behind the sector-specific Technology Select Sector SPDR Fund’s (XLK) 6.4% gains over the past year and 7.3% decline on a YTD basis.
HP stock prices dropped 6.8% in the trading session after the release of its Q1 results on Feb. 27. The company reported a modest growth in products as well as services revenue, leading to a notable 2.4% year-over-year growth in overall topline to $13.5 billion. Meanwhile, its operating cash flows increased to $374 million, up from $121 million reported in the year-ago quarter. However, its COGS and SG&A expenses increased at an even faster rate, leading to a 9.6% year-over-year decline in operating income to $845 million, missing the Street’s earnings estimates.
On a more positive note, HP expects to observe a notable improvement in its cash flows. The company expects its fiscal 2025 free cash flow to range between $3.2 billion – $3.6 billion, representing a notable 6.3% year-over-year growth at mid-point compared to fiscal 2024.
For fiscal 2025, ending in October, analysts expect HP to deliver a marginal growth in earnings to $3.39 per share. While the company has surpassed the Street’s earnings estimates once over the past four quarters, it has missed the projections on three other occasions.
The stock holds a “Moderate Buy” rating overall. Of the 14 analysts covering the stock, opinions include four “Strong Buys,” nine “Holds,” and one “Strong Sell.”
This configuration has remained stable in recent months.
On Apr. 28, Evercore ISI analyst Amit Daryanani maintained an “Outperform” rating on HP, but lowered the price target from $40 to $32.
HP’s mean price target of $33 indicates a 27.4% premium to current price levels, while its Street-high target of $44 suggests a staggering 69.9% upside potential.
