HP recently provided earnings guidance for 2025 and announced board appointments, including Gianluca Pettiti and Songyee Yoon, indicating a focus on technological expertise. However, the company's share price fell 7.57% over the past month. This decline is set against the backdrop of broader market trends, such as a 2.5% market drop due to tariff-related concerns, impacting various sectors. Although HP reported revenue growth for Q1 2025, a decline in net income and EPS may have affected investor sentiment. Additionally, the board's expansion and adjustments in bylaws might not have immediately assuaged market concerns. HP's recent collaborations, like the partnership with the Real Madrid Foundation, highlight its push towards enhancing digital offerings, but the positive news was offset by market-wide pressures on tech shares from tariff-induced fears. HPQ's stock move could reflect these cumulative influences amid a challenging macroeconomic landscape.

Dig deeper into the specifics of HP here with our thorough analysis report.

Over the past five years, HP's total shareholder return, including dividends, was 86.49%. Despite recent challenges, several long-term factors contributed to this performance. Notably, the company's valuation has been considered attractive compared to industry peers, with a Price-To-Earnings Ratio of 10.4x well below the industry average. Additionally, HP has engaged in significant share buybacks, repurchasing a substantial portion of its shares, thereby potentially boosting investor returns. A focus on sustainability, with innovations like recycled material laptops, has resonated with environmentally conscious investors.

However, HP's performance has faced hurdles, including a 4.7% annual decline in earnings over the same period, reflecting wider operational challenges. Recent earnings reports, such as Q1 2025 showing a revenue increase to US$13.50 billion but a net income fall, underscore these issues. Over the past year, HP underperformed relative to both the US market and the tech industry, which may have impacted its near-term appeal despite long-term efforts.

• Learn how HP's intrinsic value compares to its market price with our detailed valuation report.
• Assess the downside scenarios for HP with our risk evaluation.
• Is HP part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.

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.

Companies discussed in this article include NYSE:HPQ.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com