HP (HPQ) ended the recent trading session at $21.66, demonstrating a -2.08% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.64% for the day. On the other hand, the Dow registered a gain of 1.23%, and the technology-centric Nasdaq increased by 0.69%.
The personal computer and printer maker's shares have seen a decrease of 14.63% over the last month, not keeping up with the Computer and Technology sector's loss of 0.21% and the S&P 500's gain of 0.55%.
Investors will be eagerly watching for the performance of HP in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.76, showcasing a 2.7% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $13.89 billion, indicating a 2.89% upward movement from the same quarter last year.
HPQ's full-year Zacks Consensus Estimates are calling for earnings of $3 per share and revenue of $55.81 billion. These results would represent year-over-year changes of -3.85% and +0.94%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for HP. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. HP currently has a Zacks Rank of #5 (Strong Sell).
With respect to valuation, HP is currently being traded at a Forward P/E ratio of 7.38. This denotes a discount relative to the industry average Forward P/E of 12.72.
One should further note that HPQ currently holds a PEG ratio of 4.15. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Computer - Micro Computers industry was having an average PEG ratio of 1.66.
The Computer - Micro Computers industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 210, placing it within the bottom 15% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks 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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