HP (HPQ) closed the most recent trading day at $25.06, moving +1.25% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.01%. Elsewhere, the Dow lost 0.32%, while the tech-heavy Nasdaq added 0.05%.
Shares of the personal computer and printer maker have appreciated by 2.36% over the course of the past month, underperforming the Computer and Technology sector's gain of 7.44%, and the S&P 500's gain of 5.37%.
The investment community will be closely monitoring the performance of HP in its forthcoming earnings report. On that day, HP is projected to report earnings of $0.74 per share, which would represent a year-over-year decline of 10.84%. Simultaneously, our latest consensus estimate expects the revenue to be $13.69 billion, showing a 1.26% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.09 per share and a revenue of $54.5 billion, signifying shifts of -8.58% and +1.75%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for HP. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. HP is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, HP is presently being traded at a Forward P/E ratio of 8.02. This expresses a discount compared to the average Forward P/E of 12.06 of its industry.
We can additionally observe that HPQ currently boasts a PEG ratio of 2.01. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Computer - Micro Computers industry was having an average PEG ratio of 1.53.
The Computer - Micro Computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 92, which puts 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.
To follow HPQ in the coming trading sessions, be sure to utilize Zacks.com.
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 ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
