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Morningstar’s Analysis

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5-Star Price


Economic Moat


Capital Allocation


HP Powers On During Uncertain Times With Strong PC Demand; Maintaining $20 FVE

Mark Cash Equity Analyst

Analyst Note

| Mark Cash |

No-moat HP reported revenue and non-GAAP earnings per share above CapIQ consensus estimates, as the company continues to weather the economic headwinds brought on by the global pandemic. HP’s second consecutive estimates beat was primarily driven by strong demand in the personal systems segment as remote working continues to be commonplace. Like the July quarter, the company’s commercial business suffered this quarter as well, with low demand for supplies and commercial printing in a pandemic-stricken global economy where offices remain empty. With that in mind, we maintain our fair value estimate of $20 per share. Shares rose 6% after hours, and we recommend waiting for a wider margin of safety.

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Company Profile

Business Description

HP Inc. is a leading provider of computers, printers, and printer supplies. The company's three operating business segments are its personal systems, containing notebooks, desktops, and workstations; and its printing segment which contains supplies, consumer hardware, and commercial hardware; and corporate investments. In 2015, Hewlett-Packard was separated into HP Inc. and Hewlett Packard Enterprise and the Palo Alto, California-based company sells on a global scale.

1501 Page Mill Road
Palo Alto, CA, 94304
T +1 650 857-1501
Sector Technology
Industry Computer Hardware
Most Recent Earnings Oct 31, 2020
Fiscal Year End Oct 31, 2020
Stock Type High Yield
Employees 53,000