HP (HPQ) closed the most recent trading day at $18.99, moving -1.25% from the previous trading session. This move lagged the S&P 500's daily gain of 1.18%. Meanwhile, the Dow experienced a rise of 0.66%, and the technology-dominated Nasdaq saw an increase of 1.96%.
The personal computer and printer maker's shares have seen an increase of 2.94% over the last month, not keeping up with the Computer and Technology sector's gain of 5.37% and the S&P 500's gain of 3.93%.
The investment community will be paying close attention to the earnings performance of HP in its upcoming release. It is anticipated that the company will report an EPS of $0.71, marking stability compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $14.05 billion, up 6.26% from the year-ago period.
HPQ's full-year Zacks Consensus Estimates are calling for earnings of $2.84 per share and revenue of $56.83 billion. These results would represent year-over-year changes of -8.97% and +2.77%, respectively.
Investors might also notice recent changes to analyst estimates for HP. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, HP possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, HP is currently exchanging hands at a Forward P/E ratio of 6.78. Its industry sports an average Forward P/E of 13.2, so one might conclude that HP is trading at a discount comparatively.
Investors should also note that HPQ has a PEG ratio of 5.34 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Computer - Micro Computers industry held an average PEG ratio of 1.8.
The Computer - Micro Computers industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 20, finds itself in the top 9% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
SeeWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
HP Inc. (HPQ): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).