HP Inc. ( HPQ Quick Quote HPQ - Free Report) recently announced that R.R. Donnelley & Sons Company has purchased six units of HP Indigo 12000HD Digital Presses for its nationwide commercial print facilities. This makes it the first company in the United States to purchase the product. By providing better print quality, productivity and color matching capabilities, HP Indigo technology is playing a substantial role in the print industry's transformation from analog to digital printing. Strong Trend of the Digital Printing Market The market for digital printers is gaining momentum backed by the growing demand for sustainable printing and development of packaging industry. Another important driver for the market is the reduction in per unit cost of printing with digital printers. Per a report by Markets and Markets, the digital printing market is expected to hit a valuation of $28.85 billion by 2023 at a CAGR of 4.48% over the next five years. With its high quality technology and market-leading printing equipment, HP is poised well to continue leading the market for digital printers. Growing Initiatives of HP HP’s focus on various activities to trigger demand for its printing products are paying off as reflected from its recent quarterly reports. The Printing segment’s revenues were up 11% year over year to $5.2 billion.
The company is gaining from the recently-acquired Samsung’s printing business — S-Print — which has also helped it eliminate a major competitor and gain market share in the $55-billion high-end copy-machine market where Xerox Corporation is currently the leader.
The acquisition of Samsung’s printing operations could also help control prices, which is beneficial for HP, as it has been losing market share to its Japanese rivals — Canon Inc. and Epson — due to intense price competition. In the Printing segment, the company has launched products like PageWide XL and DeskJet GT and is planning to widen its 3D printing portfolio, which bodes well for the company in the strengthening printing market. Apart from expanding its traditional printing product portfolio, HP is also focusing on enhancing its 3D printing business capabilities. It unveiled Jet Fusion 3D Printing Solution last year. Notably, the 3D printing market presents significant long-term investment opportunities as a large number of engineers, designers, architects and entrepreneurs are now turning to 3D solutions for primary designing and product modeling. To satisfy customers in this space, HP has collaborated with various companies like BMW, Nike and Autodesk to develop more advanced 3D printing technologies for a wide array of industrial use. Zacks Rank and Other Stocks to Consider HP currently carries a Zacks Rank #2 (Buy). A couple of other stocks worth considering in the broader Computer and Technology sector are Adobe ( ADBE Quick Quote ADBE - Free Report) , and Verint ( VRNT Quick Quote VRNT - Free Report) . Both stocks sport a Zacks Rank #1 (Strong Buy). You can see . the complete list of today’s Zacks #1 Rank stocks here Long-term earnings growth for Adobe and Verint is projected to be 16.20% and 10%, respectively. More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>