HPQ

HP Inc. reported a 60 basis point decline in non-GAAP operating margin to 6.5% in fiscal Q3 2026 due to rising memory and storage costs impacting its Personal Systems business. The company is implementing a four-pillar strategy including supply security, demand shaping, cost reductions, and disciplined pricing.

Personal Systems margins are expected to bottom in Q4 fiscal 2026 before improving in fiscal 2027. HP trades at a discount valuation with a Zacks Rank #1 (Strong Buy) rating.

HP (HPQ) closed at $30.11, down 2.41%, underperforming the S&P 500 and lagging its sector by 10.99% over the past month. Despite recent weakness, the stock carries a Zacks Rank #1 (Strong Buy) rating, trading at a Forward P/E of 9.55—a significant discount to the industry average of 18.14. Upcoming earnings are projected at $0.75 per share, representing a 19.35% year-over-year decline, though full-year estimates suggest 3.53% EPS growth.

HP Inc. (HPQ) has been identified as a #1 Strong Buy on the Zacks Rank with a VGM Score of B. The company features an attractive Value Style Score of A, supported by a forward P/E ratio of 9.55. Six analysts revised earnings estimates upward in the last 60 days, with the Zacks Consensus Estimate increasing to $3.23 per share for fiscal 2026, and the stock has demonstrated an average earnings surprise of +9.4%.