HP Inc. Stock Decline before Earnings Report

Later today, we will see the earnings report for HP Inc. (HPQ). As the market prepares for that event, we are seeing the company’s stock price decrease.

HP stock is down today in premarket trading by 1.03% to $32.80 a share. This should not alarm investors much, though, as the stock has grown substantially since the beginning of the year. We may not be seeing a loss of investor confidence in HP as a company so much as a minor price correction in the face of a large recent upswing in stock value.

The HP stock saw one of its largest growth spurts this year starting at the beginning of May, when the stock price climbed from $27.94 up to 32.80. That 17.5% increase was the result of investor interest as HP released news that they would be producing AI-powered machines in the near future.

Anything that has to do with artificial intelligence is a hot commodity right now, especially on the stock market. HP is a proven company with a good track record, and the fact that they are dipping their toes into the AI pool could mean big things for them as a company. How that turns out from them will depend on if they can convince customers that there are significant advantages in having AI-powered HP machines.

Should You Buy HP Stock Now?

We expect the earnings report from HP to be mostly positive but find it hard to believe that they can significantly top their current high stock price. They are currently sitting at nearly the highest point we have seen from them for the year, so the company would need a very good earnings report to move higher than that in the short term.

We recommend holding off on this stock for now and waiting for it to dip. It has good long-term growth potential but seems to lack strong short-term growth factors at this time.