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HP Adds OfficeJet Pro Series to Printing Product Portfolio

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HP Inc. (HPQ - Free Report) recently unveiled the HP OfficeJet Pro series of smart printers aimed to benefit small enterprises at the HP Reinvent event.

The new printers feature self-healing Wi-Fi and strong security. The printers are up to 39% smaller than previous generations to suit small businesses, which cannot run without printers but suffer from space crunch.

The OfficeJet Pro series (9015, 9025 and Premier) will be available from this month at key office and electronic retailers, as well as on HP’s website.  Meanwhile, the HP OfficeJet Pro Series (8025, 8035) variants will be available from June onward.

HP’s Efforts in Printing

HP has been focusing on its profit-generating Printing business for some time now. The acquisition of Samsung Electronics’ S-Print was strategic move to further boost the business.

HP is also increasing investments on its A3 multifunction printers (MFPs). These printers are designed to disrupt the traditional A3 copier category. We believe that the successful deployment of the new A3 MFPs printers will improve the company’s revenues.

Additionally, HP expects its acquisition of Europe’s largest independent provider of print and document services, Apogee Corporation, to drive growth in contractual office print market.

Notably, per MarketsandMarkets, the global digital printing market is expected to reach $28.9 billion by 2023 at a CAGR of 4.48% between 2017 and 2023. Growing demand for sustainable printing, development of packaging and textile industries, and reduction in per unit cost of printing with digital printers are likely to drive the market. This projection bodes well for HP.

Competition & Other Concerns

Despite the company’s continued efforts to boost its high-margin Printing business, rising macro uncertainties and price sensitivity among customers are undermining it. Change in customer purchasing behavior with more commercial customers buying items online negatively impacted HP’s Supplies share in the last reported quarter.

Management further highlighted that all commercial customers are purchasing supplies online, and the company has a lower market share in that space compared to its share of traditional commercial resellers and in-store retailers.

Further, given the high inventory and pricing issues, the company expects sales for the Printing segment to decline over the rest of the year.

Moreover, HP faces stiff competition in this business from the likes of Xerox Corporation and Seiko Epson Corporation.

It remains to be seen whether the new suit of inkjet printers can benefit this Zacks Rank #5 (Strong Sell) stock.

HP Inc. Price and Consensus

HP Inc. Price and Consensus | HP Inc. Quote

Key Picks

A few top-ranked stocks in the broader Computer and Technology sector are Fortinet, Inc. (FTNT - Free Report) , Synopsys, Inc. (SNPS - Free Report) and eGain Corporation (EGAN - 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, Synopsys and eGain is projected to be 16.75%, 10% and 30%, respectively.

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