Going ahead with its commitment made last September to improve the lives of the children who collect recyclable materials, HP Inc. HPQ , yesterday, introduced its Original HP ink cartridges which are made out of recycled bottles. The company has started this initiative from its supply chain in Haiti.
This will help the company in creating jobs and improve the livelihood of collectors of recyclables in Haiti. Apart from this, the initiative will have a positive environmental impact as it will prevent plastics reaching to the Caribbean Sea.
The recent announcement is a step further toward the company's last week's commitment of reducing supply chain Scope 3 greenhouse gas (GHG) emissions intensity by 10% by 2025.
In our view, the initiative will also help the company in bolstering its revenues. Today, organizations and individuals are concerned about the rising environmental problems. HP's initiative will attract the organizations and individuals to use its ink cartridges, thereby bringing in more revenues.
Notably, for the past several quarters, HP's printing business has been facing challenges like sluggish demand and cut-throat competition in the space. In an effort to revamp its printer business, HP is looking at every aspect of growth, including product innovation and differentiation, and acquisition or expansion of 3D printing capabilities.
The stock has underperformed the Zacks categorized Computer-Mini industry in the year-to-date period. While the industry gained 25.6%, HP returned 19.2% in the said period.
Over the last few quarters, the company rolled out creative products like Sprocket and acquired Samsung Electronics' printer business to drive its printing segment.
Apart from this, the company is also trying to boost its 3D printing business capabilities, in an effort to revive tumbling sales. It should be noted that even though HP has been operating in this space for almost six years now, the company lags behind 3D Systems Corporation DDD and Stratasys Ltd SSYS .
Thus, in order to fortify its presence in this space, HP, last year, unveiled its Jet Fusion 3D Printing Solution, with two models to choose from - 4200 and 3200. Unlike 3D Systems and Stratasys, which target all kinds of consumers, HP emphasizes only on industrial markets because of their ability to afford a premium range of 3D printing solutions.
In our opinion, HP's efforts toward reviving its printing business have been commendable. Its strategy of focusing on product innovation and elevating 3D printing capabilities has helped in stabilizing declining revenues at its printer division, as indicated by its last quarterly results where the segment witnessed 2% year-over-year growth.
Currently, HP carries a Zacks Rank #3 (Hold).
A better-ranked stock in the broader technology sector is Applied Optoelectronics, Inc. AAOI , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
The stock, which has witnessed upward earnings estimate revisions in the last 60 days, has an estimated long-term EPS growth rate of 20%.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report HP Inc. (HPQ): Free Stock Analysis Report 3D Systems Corporation (DDD): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report Stratasys, Ltd. (SSYS): Free Stock Analysis Report To read this article on Zacks.com click here.