In the latest close session, HP (HPQ) was down 1.12% at $19.43. The stock fell short of the S&P 500, which registered a gain of 0.47% for the day. On the other hand, the Dow registered a gain of 0.04%, and the technology-centric Nasdaq increased by 0.9%.
Coming into today, shares of the personal computer and printer maker had lost 8.48% in the past month. In that same time, the Computer and Technology sector lost 1.96%, while the S&P 500 lost 0.16%.
Market participants will be closely following the financial results of HP in its upcoming release. The company plans to announce its earnings on February 24, 2026. In that report, analysts expect HP to post earnings of $0.77 per share. This would mark year-over-year growth of 4.05%. In the meantime, our current consensus estimate forecasts the revenue to be $14.06 billion, indicating a 4.13% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.97 per share and revenue of $55.16 billion, indicating changes of -4.81% and -0.25%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for HP. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 0.79% fall in the Zacks Consensus EPS estimate. HP is currently sporting a Zacks Rank of #4 (Sell).
Investors should also note HP's current valuation metrics, including its Forward P/E ratio of 6.62. This signifies a discount in comparison to the average Forward P/E of 10.78 for its industry.
We can additionally observe that HPQ currently boasts a PEG ratio of 0.31. 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. By the end of yesterday's trading, the Computer - Micro Computers industry had an average PEG ratio of 0.61.
The Computer - Micro Computers industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 204, positioning it in the bottom 17% 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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