HP (HPQ) closed at $23.75 in the latest trading session, marking a -0.34% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 2.36%. On the other hand, the Dow registered a loss of 2.48%, and the technology-centric Nasdaq decreased by 2.55%.
Shares of the personal computer and printer maker witnessed a loss of 16.91% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 8.4% and the S&P 500's loss of 5.6%.
Investors will be eagerly watching for the performance of HP in its upcoming earnings disclosure. On that day, HP is projected to report earnings of $0.80 per share, which would represent a year-over-year decline of 2.44%. Meanwhile, our latest consensus estimate is calling for revenue of $13.26 billion, up 3.6% from the prior-year quarter.
HPQ's full-year Zacks Consensus Estimates are calling for earnings of $3.45 per share and revenue of $54.64 billion. These results would represent year-over-year changes of +2.07% and +2.03%, 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. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.76% lower within the past month. HP is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, HP is at present trading with a Forward P/E ratio of 6.91. This indicates a discount in contrast to its industry's Forward P/E of 8.79.
It's also important to note that HPQ currently trades at a PEG ratio of 2.49. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Computer - Micro Computers stocks are, on average, holding a PEG ratio of 1.43 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 88, putting it in the top 36% 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.
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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