HP (HPQ) closed at $26.47 in the latest trading session, marking a -1.96% move from the prior day. This change lagged the S&P 500's daily loss of 0.24%. Meanwhile, the Dow experienced a rise of 0.04%, and the technology-dominated Nasdaq saw a decrease of 0.67%.
Shares of the personal computer and printer maker have appreciated by 6.26% over the course of the past month, outperforming the Computer and Technology sector's gain of 2.07%, and the S&P 500's gain of 1.95%.
The investment community will be closely monitoring the performance of HP in its forthcoming earnings report. The company is scheduled to release its earnings on August 27, 2025. In that report, analysts expect HP to post earnings of $0.74 per share. This would mark a year-over-year decline of 10.84%. 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.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.09 per share and revenue of $54.71 billion, indicating changes of -8.58% and +2.15%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments 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.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. HP currently has a Zacks Rank of #3 (Hold).
Digging into valuation, HP currently has a Forward P/E ratio of 8.74. This valuation marks a discount compared to its industry average Forward P/E of 12.79.
Also, we should mention that HPQ has a PEG ratio of 2.19. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computer - Micro Computers industry had an average PEG ratio of 1.53 as trading concluded yesterday.
The Computer - Micro Computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 14, which puts it in the top 6% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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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