Dec. 31, 2025 2:47 AM ETHP Inc. (HPQ) StockRedfox Capital Ideas666 FollowersCommentsSummaryHP Inc. is downgraded to Hold as cost inflation, defensive management tone, and deteriorating earnings visibility cloud near-term upside.Cost inflation, especially in memory and storage, pressures HPQ’s margins, with management guiding FY2026 EPS of $2.9–$3.2, below FY25 levels.Despite AI PC adoption momentum and a ~5% dividend yield, weak demand and restructuring actions limit near-term earnings growth and re-rating potential.Valuation at ~7.4x forward earnings offers downside support, but I see no immediate catalyst for multiple expansion; patience is warranted.JasonDoiy/iStock Unreleased via Getty ImagesInvestment SummaryMy previous investment thought on HP Inc. (HPQ) was an upgrade to a buy rating because I believed the business had reached an inflection point. My confidence was supported by whatThis article was written byRedfox Capital Ideas666 FollowersI focus on long-term investments while incorporating short-term shorts to uncover alpha opportunities. My investment approach revolves around bottom-up analysis, delving into the fundamental strengths and weaknesses of individual companies. My investment duration is the medium to long-term. Ultimately, I aim to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Comments