HP (HPQ) ended the recent trading session at $18.49, demonstrating a -4% change from the preceding day's closing price. This change lagged the S&P 500's 0.1% gain on the day. Meanwhile, the Dow gained 0.07%, and the Nasdaq, a tech-heavy index, added 0.14%.
Heading into today, shares of the personal computer and printer maker had lost 5.45% over the past month, lagging the Computer and Technology sector's loss of 4.05% and the S&P 500's loss of 1.43%.
Investors will be eagerly watching for the performance of HP in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 24, 2026. The company is predicted to post an EPS of $0.77, indicating a 4.05% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $14.06 billion, indicating a 4.13% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.97 per share and revenue of $55.16 billion. These totals would mark changes of -4.81% and -0.25%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for HP. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.79% lower. At present, HP boasts a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that HP has a Forward P/E ratio of 6.48 right now. This signifies a discount in comparison to the average Forward P/E of 10.53 for its industry.
It's also important to note that HPQ currently trades at a PEG ratio of 0.3. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Computer - Micro Computers industry had an average PEG ratio of 0.84.
The Computer - Micro Computers industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 230, this industry ranks in the bottom 7% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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