In the latest trading session, HP (HPQ) closed at $19.00, marking a -4.09% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.84%. Elsewhere, the Dow lost 0.34%, while the tech-heavy Nasdaq lost 1.43%.
Heading into today, shares of the personal computer and printer maker had lost 8.54% over the past month, lagging the Computer and Technology sector's gain of 1.75% and the S&P 500's gain of 1.8%.
The investment community will be paying close attention to the earnings performance of HP in its upcoming release. In that report, analysts expect HP to post earnings of $0.78 per share. This would mark year-over-year growth of 5.41%. Meanwhile, our latest consensus estimate is calling for revenue of $14.06 billion, up 4.13% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.03 per share and revenue of $55.16 billion. These totals would mark changes of -2.88% and -0.25%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for HP. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business 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.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.26% fall in the Zacks Consensus EPS estimate. As of now, HP holds a Zacks Rank of #4 (Sell).
In terms of valuation, HP is presently being traded at a Forward P/E ratio of 6.55. This expresses a discount compared to the average Forward P/E of 10.51 of its industry.
Also, we should mention that HPQ has a PEG ratio of 3.68. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Computer - Micro Computers stocks are, on average, holding a PEG ratio of 1.53 based on yesterday's closing prices.
The Computer - Micro Computers industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 207, finds itself in the bottom 16% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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HP Inc. (HPQ): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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