HP (HPQ) closed at $25.94 in the latest trading session, marking a -3.96% move from the prior day. This change lagged the S&P 500's daily loss of 1.17%. Meanwhile, the Dow lost 0.53%, and the Nasdaq, a tech-heavy index, lost 2.04%.
Prior to today's trading, shares of the personal computer and printer maker had gained 1.5% lagged the Computer and Technology sector's gain of 5.49% and the S&P 500's gain of 2.12%.
The investment community will be paying close attention to the earnings performance of HP in its upcoming release. The company is forecasted to report an EPS of $0.92, showcasing a 1.08% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $14.79 billion, up 5.23% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.11 per share and a revenue of $55.2 billion, representing changes of -7.99% and 0%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for HP. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.3% lower within the past month. HP presently features a Zacks Rank of #4 (Sell).
Investors should also note HP's current valuation metrics, including its Forward P/E ratio of 8.13. Its industry sports an average Forward P/E of 14.47, so one might conclude that HP is trading at a discount comparatively.
Also, we should mention that HPQ has a PEG ratio of 2.03. 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. The average PEG ratio for the Computer - Micro Computers industry stood at 1.51 at the close of the market yesterday.
The Computer - Micro Computers industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 96, positioning it in the top 39% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the 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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