HP (HPQ) ended the recent trading session at $25.35, demonstrating a +1.36% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.08% for the day. At the same time, the Dow lost 0.51%, and the tech-heavy Nasdaq gained 0.35%.
Prior to today's trading, shares of the personal computer and printer maker had lost 2.38% lagged the Computer and Technology sector's gain of 3.95% and the S&P 500's gain of 1.21%.
Market participants will be closely following the financial results of HP in its upcoming release. The company plans to announce its earnings on August 27, 2025. The company is forecasted to report an EPS of $0.74, showcasing a 10.84% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $13.85 billion, indicating a 2.42% increase compared to the same quarter of the previous year.
HPQ's full-year Zacks Consensus Estimates are calling for earnings of $3.09 per share and revenue of $54.71 billion. These results would represent year-over-year changes of -8.58% and +2.15%, respectively.
Investors should also note any recent changes to analyst estimates for HP. Such recent modifications usually signify the changing landscape of near-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. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate has moved 0.06% higher within the past month. HP is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, HP currently has a Forward P/E ratio of 8.1. Its industry sports an average Forward P/E of 12.5, so one might conclude that HP is trading at a discount comparatively.
Investors should also note that HPQ has a PEG ratio of 2.02 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Computer - Micro Computers industry was having an average PEG ratio of 1.42.
The Computer - Micro Computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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