HP (HPQ) ended the recent trading session at $19.05, demonstrating a -1.65% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.01%. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, added 0.17%.
Shares of the personal computer and printer maker have depreciated by 15.42% over the course of the past month, underperforming the Computer and Technology sector's gain of 1.46%, and the S&P 500's gain of 0.78%.
Analysts and investors alike will be keeping a close eye on the performance of HP in its upcoming earnings disclosure. The company is expected to report EPS of $0.78, up 5.41% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.24 billion, up 5.48% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.99 per share and revenue of $55.49 billion, indicating changes of -4.17% and +0.35%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for HP. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 past month, the Zacks Consensus EPS estimate has shifted 0.33% downward. Right now, HP possesses a Zacks Rank of #4 (Sell).
In the context of valuation, HP is at present trading with a Forward P/E ratio of 6.48. This indicates a discount in contrast to its industry's Forward P/E of 10.89.
It is also worth noting that HPQ currently has a PEG ratio of 3.64. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computer - Micro Computers was holding an average PEG ratio of 1.55 at yesterday's closing price.
The Computer - Micro Computers industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 213, finds itself in the bottom 14% echelons 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.
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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