In the latest trading session, HP (HPQ) closed at $21.18, marking a -1.35% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.16%. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq added 0.26%.
The stock of personal computer and printer maker has fallen by 13.22% in the past month, lagging the Computer and Technology sector's loss of 0.85% and the S&P 500's gain of 1.89%.
The investment community will be closely monitoring the performance of HP in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.76, reflecting a 2.7% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $13.89 billion, showing a 2.89% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3 per share and revenue of $55.81 billion, which would represent changes of -3.85% and +0.94%, respectively, from the prior year.
Investors should also take note of any recent adjustments 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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, HP boasts a Zacks Rank of #5 (Strong Sell).
Investors should also note HP's current valuation metrics, including its Forward P/E ratio of 7.16. For comparison, its industry has an average Forward P/E of 11.26, which means HP is trading at a discount to the group.
Meanwhile, HPQ's PEG ratio is currently 4.02. 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. Computer - Micro Computers stocks are, on average, holding a PEG ratio of 1.59 based on yesterday's closing prices.
The Computer - Micro Computers industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 233, putting it in the bottom 5% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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