HP Inc. (NYSE: HPQ) found itself in the spotlight recently as Barclays analyst Tim Long shifted the company’s rating to “Underweight.” This change, announced on January 16, 2026, has raised eyebrows among investors who are now assessing the implications of this downgrade against HP’s current price and market performance.
Market Price Action
As of the latest trading session, HPQ’s stock is priced at $20.37, reflecting a decrease of $0.24, or approximately 1.16%. The stock has exhibited notable volatility, with a 52-week high of $42.25 and a low of just $0.66. The recent trading volume has reached approximately 17.47 million shares, surpassing the average volume of about 13.35 million shares. With a market capitalization of approximately $19.04 billion and a beta of 1.22, HPQ suggests it might be more volatile than the overall market, thereby amplifying investor sentiment and reaction to news and ratings alterations.
Short- and Long-Term Performance
HPQ’s performance metrics over varying time frames indicate a concerning trajectory. Over the past 30 days, HPQ has faced a steep decline of approximately 16.82%. This downturn is mirrored in the quarterly performance, which has seen the stock tumble by 28.8%. Over the past year, HPQ’s performance reflects a staggering drop of 37.55%. Daily volatility has averaged around 3.16%, and monthly volatility trails closely at 3.06%, indicating that HPQ has experienced significant swings that might be disconcerting for both short-term traders and long-term investors.
Earnings Analysis
Recent earnings reports shed some light on HP’s financial health. For the quarter ending in November 2025, HPQ reported earnings per share (EPS) of $0.93, surpassing analyst estimates of $0.91. This resulted in a surprise factor of nearly 2.2%, hinting at a slightly better-than-anticipated performance. In contrast, the prior quarter saw a more modest EPS of $0.75 against an expectation of $0.745, yielding a smaller surprise of 0.67%. This consistency in beating earnings estimates, albeit marginally, adds a nuanced layer to HPQ’s financial narrative, albeit in the backdrop of a declining stock price.
Analyst and Consensus View
The sentiment surrounding HPQ from analysts has been decidedly cautious. The stock currently holds 14 ratings, of which there are no “Buy” recommendations, 10 ratings classified as “Hold,” and 4 as “Sell.” The average price target stands at $26.07, with Long’s price target being the lowest at $18. This suggests that analysts expect further downside potential as they grapple with the company’s challenges in a contracting market. Overall, the consensus reflects a lack of confidence in HP’s near-term prospects, prompting many investors to reconsider their positions.
Fundamental Overview
HPQ’s Stocks Telegraph Grade currently stands at 38, indicating significant challenges in its fundamental outlook. This score encompasses various metrics analyzing the company’s financial health, operational metrics, and market positioning. The low score underlines underlying issues potentially affecting the company’s profitability and growth trajectory, which could deter risk-averse investors or those seeking robust fundamentals.
Conclusion
While HP Inc. has managed to deliver positive EPS surprises, the prevailing analyst sentiment indicates substantial headwinds ahead. For growth-focused investors, the stock may present heightened risks, particularly in light of the recent rating downgrade and ongoing declines in share price. Conversely, value-oriented investors might find the stock appealing if they believe in a long-term recovery. Yet, with HPQ’s current trajectory marred by significant volatility and a bearish analyst outlook, caution is advised for any prospective investment in this space. As the situation unfolds, it will be critical for investors to monitor HPQ closely, not only for potential price recovery but also for shifts in operational performance and market sentiment.