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In the latest trading session, HP (HPQ) closed at $25.39, marking a +0.44% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.06%. Elsewhere, the Dow saw an upswing of 0.28%, while the tech-heavy Nasdaq depreciated by 0.1%.
Coming into today, shares of the personal computer and printer maker had lost 9.39% in the past month. In that same time, the Computer and Technology sector lost 5.52%, while the S&P 500 lost 4.29%.
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 $0.80, marking a 2.44% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $13.36 billion, reflecting a 4.34% rise from the equivalent quarter last year.
HPQ's full-year Zacks Consensus Estimates are calling for earnings of $3.39 per share and revenue of $54.23 billion. These results would represent year-over-year changes of +0.3% and +1.26%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for HP. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.46% decrease. HP is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, HP is currently trading at a Forward P/E ratio of 7.46. Its industry sports an average Forward P/E of 9.9, so one might conclude that HP is trading at a discount comparatively.
It is also worth noting that HPQ currently has a PEG ratio of 2.69. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Computer - Micro Computers industry stood at 1.55 at the close of the market yesterday.