The most recent trading session ended with HP (HPQ) standing at $32.47, reflecting a -0.49% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily loss of 0.22%. Elsewhere, the Dow lost 0.36%, while the tech-heavy Nasdaq lost 0.16%.
Coming into today, shares of the personal computer and printer maker had lost 10.26% in the past month. In that same time, the Computer and Technology sector gained 1.86%, while the S&P 500 lost 2.36%.
The upcoming earnings release of HP will be of great interest to investors. On that day, HP is projected to report earnings of $0.74 per share, which would represent a year-over-year decline of 8.64%. At the same time, our most recent consensus estimate is projecting a revenue of $13.48 billion, reflecting a 2.25% rise from the equivalent quarter last year.
HPQ's full-year Zacks Consensus Estimates are calling for earnings of $3.56 per share and revenue of $55.11 billion. These results would represent year-over-year changes of +5.33% and +2.89%, respectively.
Investors might also notice recent changes to analyst estimates for HP. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 remained steady. HP is currently a Zacks Rank #3 (Hold).
From a valuation perspective, HP is currently exchanging hands at a Forward P/E ratio of 9.17. This indicates a discount in contrast to its industry's Forward P/E of 13.62.
It's also important to note that HPQ currently trades at a PEG ratio of 2.78. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Micro Computers industry had an average PEG ratio of 1.77 as trading concluded yesterday.
The Computer - Micro Computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 35% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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 Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
