HP (HPQ) closed at $33.15 in the latest trading session, marking a +1.01% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.03% for the day. On the other hand, the Dow registered a gain of 0.28%, and the technology-centric Nasdaq decreased by 0.36%.
Heading into today, shares of the personal computer and printer maker had gained 0.61% over the past month, lagging the Computer and Technology sector's gain of 2.31% and the S&P 500's gain of 4.19% in that time.
Analysts and investors alike will be keeping a close eye on the performance of HP in its upcoming earnings disclosure. The company's earnings report is set to go public on February 27, 2025. The company's earnings per share (EPS) are projected to be $0.74, reflecting an 8.64% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.48 billion, up 2.25% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.56 per share and a revenue of $55.11 billion, representing changes of +5.33% and +2.89%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for HP. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks 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).
With respect to valuation, HP is currently being traded at a Forward P/E ratio of 9.22. This denotes a discount relative to the industry's average Forward P/E of 13.59.
Also, we should mention that HPQ has a PEG ratio of 2.8. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Computer - Micro Computers industry stood at 1.57 at the close of the market yesterday.
The Computer - Micro Computers industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 86, positioning it in the top 35% 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.
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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.
