HP (HPQ) closed the most recent trading day at $24.83, moving -2.32% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.14% for the day. Meanwhile, the Dow experienced a rise of 0.2%, and the technology-dominated Nasdaq saw an increase of 0.27%.
Prior to today's trading, shares of the personal computer and printer maker had gained 6.63% outpaced the Computer and Technology sector's gain of 5.36% and the S&P 500's gain of 3.97%.
The investment community will be closely monitoring the performance of HP in its forthcoming earnings report. The company is expected to report EPS of $0.74, down 10.84% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $13.69 billion, reflecting a 1.26% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.09 per share and a revenue of $54.5 billion, indicating changes of -8.58% and +1.75%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for HP. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, HP holds a Zacks Rank of #3 (Hold).
Investors should also note HP's current valuation metrics, including its Forward P/E ratio of 8.24. This signifies a discount in comparison to the average Forward P/E of 11.92 for its industry.
It's also important to note that HPQ currently trades at a PEG ratio of 2.06. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computer - Micro Computers industry had an average PEG ratio of 1.56 as trading concluded yesterday.
The Computer - Micro Computers industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 92, putting it in the top 38% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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HP Inc. (HPQ): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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