HP (HPQ) ended the recent trading session at $19.53, demonstrating a -1.36% change from the preceding day's closing price. This change lagged the S&P 500's 1.16% gain on the day. Meanwhile, the Dow gained 1.21%, and the Nasdaq, a tech-heavy index, added 1.18%.
The personal computer and printer maker's shares have seen a decrease of 13.65% over the last month, not keeping up with the Computer and Technology sector's loss of 1.07% and the S&P 500's loss of 0.42%.
Investors will be eagerly watching for the performance of HP in its upcoming earnings disclosure. In that report, analysts expect HP to post earnings of $0.76 per share. This would mark year-over-year growth of 2.7%. Our most recent consensus estimate is calling for quarterly revenue of $13.89 billion, up 2.89% from the year-ago period.
HPQ's full-year Zacks Consensus Estimates are calling for earnings of $3 per share and revenue of $56.31 billion. These results would represent year-over-year changes of -3.85% and +1.84%, respectively.
Any recent changes to analyst estimates for HP should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, HP is carrying a Zacks Rank of #4 (Sell).
From a valuation perspective, HP is currently exchanging hands at a Forward P/E ratio of 6.61. This expresses a discount compared to the average Forward P/E of 10.63 of its industry.
Also, we should mention that HPQ has a PEG ratio of 3.71. 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 1.5 at the close of the market yesterday.
The Computer - Micro Computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 214, which puts it in the bottom 13% of all 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.
You can find more information on all of these metrics, and much 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
