HP (HPQ) closed the latest trading day at $33.45, indicating a -0.65% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.16%. Elsewhere, the Dow saw an upswing of 0.25%, while the tech-heavy Nasdaq depreciated by 0.06%.
Shares of the personal computer and printer maker have depreciated by 3.18% over the course of the past month, underperforming the Computer and Technology sector's loss of 0.39% and the S&P 500's loss of 2.7%.
The investment community will be paying close attention to the earnings performance of HP in its upcoming release. 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%. In the meantime, our current consensus estimate forecasts the revenue to be $13.48 billion, indicating a 2.25% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.56 per share and a revenue of $55.11 billion, signifying shifts of +5.33% and +2.89%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for HP. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, HP is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that HP has a Forward P/E ratio of 9.4 right now. This denotes a discount relative to the industry's average Forward P/E of 13.55.
One should further note that HPQ currently holds a PEG ratio of 2.85. 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. As of the close of trade yesterday, the Computer - Micro Computers industry held an average PEG ratio of 1.75.
The Computer - Micro Computers industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 91, placing it within the top 37% of over 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.
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HP Inc. (HPQ) : Free Stock Analysis Report
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