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HP Rolls Out New Printer, Eyes Remote-Working Opportunity

Zacks Equity Research

HP Inc. HPQ recently enhanced its product portfolio with the launch of the firm’s latest family printer — HP ENVY 6000. The company stated that the ENVY 6000 printers, along with the HP Smart app, would provide effortless user experience.

The printer is easy to set up, and users can easily print, copy, scan, and even fax from any mobile devices at home. In connection with the latest launch, HP is offering a replacement cartridge monthly plan of as low as $2.99.

HP Eyes Remote-Working Opportunity

The latest launch is part of the company’s strategy of tapping opportunities resulting from the coronavirus outbreak. The need for consumer-level office tools are greater than ever, as most people and students are forced to work-and-learn from home due to the pandemic.

In such a scenario, home printers have become one of the most crucial equipment for working and learning purposes at home. As a result, the demand for consumer-level printers has grown immensely in the last few months, and HP is eyeing on the opportunity.

HP Inc. Price and Consensus

HP Inc. Price and Consensus

HP Inc. price-consensus-chart | HP Inc. Quote

HP’s Xavier Garcia, global head and general manager, Print Hardware Solutions, said that "Our new printers introduced today were designed for those adapting to remote working and learning, offering easy set up solutions with a smart control panel that intuitively lights up when needed.”

Additionally, HP is focusing on fortifying its 3D printing business capabilities in the face of the coronavirus pandemic. Notably, hospitals are grappling with the rapid spread of the virus and shortage of protective gears for their staff.

Amid such an environment, healthcare providers are turning to 3D printers to produce gadgets and gears in an effort to mitigate the risks faced by doctors and nurses. Necessity of rapid productions of safety healthcare gears is driving demand for 3D printing equipment. All these are boosting demand for HP’s 3D printing solutions.

Portfolio Expansion to Boost Printing Business

For the past several quarters, HP has been witnessing declining sales in the Printing business. In the second quarter of fiscal 2020, HP’s Printing revenues fell 19% year over year due to the coronavirus-related disruptions.

However, the company has been quite proactive and aggressively building up the business amid these challenges. In March, HP rolled out several digital printers and printing solutions to facilitate the firm’s transition from analog to digital printing.

In its last earnings call, the company mentioned that it is collaborating with other companies and ramping up the production of 3D printed nasal swabs to accelerate mass testing. Moreover, management said that HP, along with its partners, has manufactured more than 2.3 million 3D printed parts to help healthcare professionals on the front lines.

Its efforts, combined with the opportunity to bolster the 3D and consumer-level printing businesses amid the pandemic, are expected to help to revive HP’s Printing unit.

Zacks Rank & Key Picks

HP currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the broader computer technology sector are Atlassian TEAM, NVIDIA Corporation NVDA and Micron Technology MU. All these stocks carry a Zacks Rank #2 (Buy) currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The long-term earnings growth rate for Atlassian, NVIDIA and Micron is pegged at 22.6%, 16.9% and 10.3%, respectively.

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