With HP Stock Sliding, Have You Assessed The Risk?
HP (HPQ) stock is down 13.0% in 21 trading days. The recent slide reflects weak FY26 guidance and rising memory costs amid shrinking printing margins, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where HP stands today.
- Size: HP is a $20 Bil company with $55 Bil in revenue currently trading at $21.66.
- Fundamentals: Last 12 month revenue growth of 3.2% and operating margin of 6.6%.
- Liquidity: Has Debt to Equity ratio of 0.53 and Cash to Assets ratio of 0.09
- Valuation: HP stock is currently trading at P/E multiple of 8.1 and P/EBIT multiple of 6.3
- Has returned (median) -3.8% within a year following sharp dips since 2010. See HPQ Dip Buy Analysis.
These metrics point to a Weak operational performance, alongside Low valuation – making the stock Fairly Priced. For details, see Buy or Sell HPQ Stock
That brings us to the key consideration for investors worried about this fall: how resilient is HPQ stock if markets turn south? This is where our downturn resilience framework comes in. Suppose HPQ stock falls another 20-30% to $15 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
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2022 Inflation Shock
- HPQ stock fell 38.8% from a high of $40.34 on 1 June 2022 to $24.69 on 12 October 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- The stock is yet to recover to its pre-Crisis high
- The highest the stock has reached since then is $39.30 on 25 November 2024 , and currently trades at $21.66
| HPQ | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -38.8% | -25.4% |
| Time to Full Recovery | Not Fully Recovered | 464 days |
2020 Covid Pandemic
- HPQ stock fell 43.9% from a high of $23.35 on 25 February 2020 to $13.11 on 18 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 4 December 2020
| HPQ | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -43.9% | -33.9% |
| Time to Full Recovery | 261 days | 148 days |
2018 Correction
- HPQ stock fell 39.3% from a high of $26.42 on 4 October 2018 to $16.03 on 10 October 2019 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 8 February 2021
| HPQ | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -39.3% | -19.8% |
| Time to Full Recovery | 487 days | 120 days |
2008 Global Financial Crisis
- HPQ stock fell 52.2% from a high of $23.71 on 6 November 2007 to $11.34 on 9 March 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 25 March 2010
| HPQ | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -52.2% | -56.8% |
| Time to Full Recovery | 381 days | 1,480 days |
Feeling jittery about HPQ stock? Consider portfolio approach.
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