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The most recent trading session ended with HP (HPQ) standing at $32.47, reflecting a -0.49% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily loss of 0.22%. Elsewhere, the Dow lost 0.36%, while the tech-heavy Nasdaq lost 0.16%.
Coming into today, shares of the personal computer and printer maker had lost 10.26% in the past month. In that same time, the Computer and Technology sector gained 1.86%, while the S&P 500 lost 2.36%.
The upcoming earnings release of HP will be of great interest to investors. 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%. At the same time, our most recent consensus estimate is projecting a revenue of $13.48 billion, reflecting a 2.25% rise from the equivalent quarter last year.
HPQ's full-year Zacks Consensus Estimates are calling for earnings of $3.56 per share and revenue of $55.11 billion. These results would represent year-over-year changes of +5.33% and +2.89%, respectively.
Investors might also notice recent changes to analyst estimates for HP. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. HP is currently a Zacks Rank #3 (Hold).
From a valuation perspective, HP is currently exchanging hands at a Forward P/E ratio of 9.17. This indicates a discount in contrast to its industry's Forward P/E of 13.62.
It's also important to note that HPQ currently trades at a PEG ratio of 2.78. 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 Computer - Micro Computers industry had an average PEG ratio of 1.77 as trading concluded yesterday.
The Computer - Micro Computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 35% of all 250+ industries.