In the latest close session, HP (HPQ) was up +2.27% at $24.77. This move outpaced the S&P 500's daily loss of 0.79%. On the other hand, the Dow registered a loss of 0.26%, and the technology-centric Nasdaq decreased by 1.55%.
Heading into today, shares of the personal computer and printer maker had lost 4.04% over the past month, lagging the Computer and Technology sector's gain of 3.44% and the S&P 500's gain of 4.28%.
The investment community will be closely monitoring the performance of HP in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.66, reflecting a 12% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $14.62 billion, up 4.91% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.98 per share and revenue of $58.27 billion. These totals would mark changes of -4.49% and +5.39%, respectively, from 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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, HP boasts a Zacks Rank of #3 (Hold).
In terms of valuation, HP is presently being traded at a Forward P/E ratio of 8.13. This expresses a discount compared to the average Forward P/E of 23.17 of its industry.
We can additionally observe that HPQ currently boasts a PEG ratio of 4.09. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Computer - Micro Computers industry was having an average PEG ratio of 2.74.
The Computer - Micro Computers industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 17, this industry ranks in the top 7% of all industries, numbering over 250.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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HP Inc. (HPQ): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).