In the latest trading session, HP (HPQ) closed at $25.10, marking a -2.22% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.13%. Meanwhile, the Dow experienced a drop of 0.39%, and the technology-dominated Nasdaq saw an increase of 0.15%.
The personal computer and printer maker's stock has climbed by 0.67% in the past month, falling short of the Computer and Technology sector's gain of 4.69% and the S&P 500's gain of 3.39%.
The investment community will be paying close attention to the earnings performance of HP in its upcoming release. The company's earnings per share (EPS) are projected to be $0.74, reflecting a 10.84% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.85 billion, up 2.42% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.09 per share and revenue of $54.71 billion. These totals would mark changes of -8.58% and +2.15%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for HP. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.06% higher within the past month. Currently, HP is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, HP is at present trading with a Forward P/E ratio of 8.31. This represents a discount compared to its industry average Forward P/E of 12.74.
We can also see that HPQ currently has a PEG ratio of 2.08. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Computer - Micro Computers stocks are, on average, holding a PEG ratio of 1.53 based on yesterday's closing prices.
The Computer - Micro Computers industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 91, this industry ranks in the top 37% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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HP Inc. (HPQ): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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