HP (HPQ): Exploring Valuation After Sustainability Honors and New Additive Manufacturing Partnership

HP (HPQ) is drawing attention after being named the 2025 Americas Company of the Year in Sustainability and Circular Economy by Frost & Sullivan. The company is also embarking on a new partnership with Continuum Powders to develop advanced alloys.

See our latest analysis for HP.

Even with recognition for its sustainability leadership and new partnerships in additive manufacturing, HP's share price momentum has been mixed. The stock posted a 9.2% gain over the last 90 days but still shows a 1-year total shareholder return of -23.6%. This suggests renewed investor interest lately, yet long-term holders have weathered a tough stretch.

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With HP’s recent honors and new technical initiatives, investors are left to wonder whether shares are lagging because the market is missing the company’s potential, or if future growth is already fully reflected in the price.

Most Popular Narrative: 3.2% Undervalued

HP's most widely followed narrative points to a fair value moderately above the last close, suggesting that current prices may not fully reflect the company's potential. With shares recently gaining but still lagging over the past year, the debate around its true worth intensifies.

Expansion and momentum in recurring digital and managed service models (such as Device-as-a-Service and consumer print subscriptions) are increasing the share of predictable, higher-margin revenue streams. This supports future earnings and operational stability. Persistent structural cost reduction initiatives, including manufacturing diversification outside China, AI-enabled automation, and a $2B annualized savings target, are set to drive sustainable improvements in net margins and bottom-line earnings resilience.

Read the complete narrative.

Want a real look under the hood? The main catalyst for this value is a forecast of higher recurring revenue and a future margin reset. Are analysts betting on a transformation in HP’s business model, or do conventional expectations still dominate the outlook? Uncover which numbers tip the balance and how they could shape the share price over the coming years.

Result: Fair Value of $28.28 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing pressure in HP’s core print market and aggressive price competition could undermine earnings momentum and challenge the current fair value outlook.

Find out about the key risks to this HP narrative.

Build Your Own HP Narrative

If you see the story differently or want to dive into the numbers yourself, you can craft your own narrative in just a few minutes. Do it your way

A great starting point for your HP research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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