HP Inc. (HPQ - Free Report) is set to demonstrate latest innovations and upgrades to its key technologies at Labelexpo Americas 2018 to be held during Sep 25-27.
Demonstrations will include advancements in HP Indigo Digital Press portfolio, a division of its Graphic Arts business. The new solutions aim to drive profitable growth and aid digital transformation process, especially in the packaging converter and labelling industries.
HP Indigo GEM, which was launched at the Labelexpo Americas 2017, officially entered the first stage of beta customer testing, with Innovative Labeling Solutions being the first U.S. beta customer.
HP will also officially unveil the HP SmartStream Collage, an automated variable design feature for HP Indigo printing, aimed to benefit converters.
Apart from this, HP will also announce new enhancements to the HP PrintOS, HP Indigo 20000 and HP Indigo 6900, all of which will directly benefit labelling and converter companies.
With growing digital transformation taking place across all industries, the need for converters to enhance supply chain efficiency and increase speed to market has become vital. Along with this, the necessity to educate brands on the importance of labels and packaging innovations in customer engagement strategies, using the apt technology, crops up.
HP strives to provide solutions to address these requirements, allowing converters to produce many types of labels and packaging digitally.
Efforts in Printing Drive Growth
HP has been focusing on its profit-generating Printing Business for some time now. The segment’s revenues constituted 35.6% of total revenues of its last reported quarter, up 11% year over year.
Per management, HP’s A3 business held a market share of 9.1% in the previous quarter. Although the growth rate is not expected to be the same every quarter, management believes that it is on track to achieve 12% market share by 2020.
Additionally, HP expects its upcoming acquisition of Europe’s largest independent provider of print and document services, Apogee Corporation, to drive growth in contractual office print market.
It also recently launched the new DesignJet Z large format photo printers, which is expected to be adopted widely and, in turn, boost revenues.
Zacks Rank & Stocks to Consider
HP currently has a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader Computer and Technology sector are Fortinet, Inc. (FTNT - Free Report) , Apple Inc. (AAPL - Free Report) and Radware Ltd. (RDWR - Free Report) , each sporting 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 Fortinet, Apple and Radware is pegged at 16.8%, 9.7% and 19%, respectively.
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