HPQ Should I Buy
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HP Inc. (HPQ) is not a strong buy at the moment for a beginner investor with a long-term strategy. The stock faces significant headwinds, including analyst downgrades, a sudden CEO transition, and weak financial performance in the latest quarter. While hedge funds are buying, insider selling and bearish technical indicators suggest caution. The absence of strong trading signals and limited positive catalysts further support a hold recommendation.
The technical indicators for HPQ are bearish. The MACD histogram is above 0 but contracting, suggesting weakening momentum. RSI is neutral at 35.758, and moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). Key support is at $18.553, and resistance is at $19.426. The stock is trading below its pivot level, signaling weakness.
Hedge funds are buying, with a 389.67% increase in buying activity over the last quarter. The stock has a 5.43% chance of increasing in the next month based on historical patterns.
Analysts have downgraded the stock due to a sudden CEO transition, slower PC demand, and memory cost pressures. Insider selling has increased by 350.12% over the last month. Financial performance in Q4 2025 showed declining net income (-12.25% YoY), EPS (-9.68% YoY), and gross margin (-4.66% YoY).
In Q4 2025, HP Inc. reported a 4.16% YoY revenue increase to $14.64B. However, net income dropped by 12.25% YoY to $795M, EPS declined by 9.68% to $0.84, and gross margin fell by 4.66% to 19.84%. These results highlight profitability challenges despite revenue growth.
Analysts have downgraded HPQ significantly. BofA downgraded it to Underperform with a price target of $20, citing CEO transition and headwinds in PC demand. Morgan Stanley, Barclays, and Citi have also lowered price targets, with concerns about memory costs, slower hardware budget growth, and secular challenges in the PC and printing segments.
