HP (HPQ) ended the recent trading session at $27.70, demonstrating a -1.32% change from the preceding day's closing price. Elsewhere, the Dow saw a downswing of 0.16%, while the tech-heavy Nasdaq appreciated by 0.55%.
Shares of the personal computer and printer maker have appreciated by 3.08% over the course of the past month, underperforming the Computer and Technology sector's gain of 6.92%, and the S&P 500's gain of 3.83%.
Analysts and investors alike will be keeping a close eye on the performance of HP in its upcoming earnings disclosure. On that day, HP is projected to report earnings of $0.92 per share, which would represent a year-over-year decline of 1.08%. Meanwhile, the latest consensus estimate predicts the revenue to be $14.79 billion, indicating a 5.23% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.11 per share and a revenue of $55.2 billion, signifying shifts of -7.99% and +3.07%, 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 help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.13% rise in the Zacks Consensus EPS estimate. Right now, HP possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, HP is holding a Forward P/E ratio of 9.03. This valuation marks a discount compared to its industry average Forward P/E of 14.85.
It is also worth noting that HPQ currently has a PEG ratio of 2.26. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Micro Computers industry currently had an average PEG ratio of 1.64 as of yesterday's close.
The Computer - Micro Computers industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 40, finds itself in the top 17% echelons of all 250+ industries.
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.
Be sure to follow all of these stock-moving metrics, and many more, on 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
