HP (HPQ) closed the most recent trading day at $24.81, moving +2.44% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.89%. Meanwhile, the Dow experienced a rise of 0.74%, and the technology-dominated Nasdaq saw an increase of 1.29%.
The personal computer and printer maker's stock has climbed by 2.89% in the past month, exceeding the Computer and Technology sector's loss of 6.6% and the S&P 500's loss of 0.63%.
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 $0.66, marking a 12% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $14.6 billion, reflecting a 4.82% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.98 per share and a revenue of $58.26 billion, representing changes of -4.49% and +5.37%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for HP. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, HP boasts a Zacks Rank of #3 (Hold).
In the context of valuation, HP is at present trading with a Forward P/E ratio of 8.13. This valuation marks a discount compared to its industry average Forward P/E of 20.31.
It is also worth noting that HPQ currently has a PEG ratio of 4.09. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Micro Computers was holding an average PEG ratio of 2.84 at yesterday's closing price.
The Computer - Micro Computers industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 18, this industry ranks in the top 8% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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HP Inc. (HPQ): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).