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In the latest market close, HP (HPQ) reached $25.52, with a +0.51% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 0.58% for the day. At the same time, the Dow added 0.75%, and the tech-heavy Nasdaq gained 0.55%.
The personal computer and printer maker's shares have seen a decrease of 8.31% over the last month, not keeping up with the Computer and Technology sector's gain of 0.6% and the S&P 500's loss of 0.84%.
Analysts and investors alike will be keeping a close eye on the performance of HP in its upcoming earnings disclosure. 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. Meanwhile, the latest consensus estimate predicts the revenue to be $13.36 billion, indicating a 4.34% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.39 per share and a revenue of $54.23 billion, signifying shifts of +0.3% and +1.26%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for HP. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Within the past 30 days, our consensus EPS projection has moved 4.46% lower. HP is currently a Zacks Rank #5 (Strong Sell).
In the context of valuation, HP is at present trading with a Forward P/E ratio of 7.49. For comparison, its industry has an average Forward P/E of 9.8, which means HP is trading at a discount to the group.
Meanwhile, HPQ's PEG ratio is currently 2.7. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Computer - Micro Computers stocks are, on average, holding a PEG ratio of 1.57 based on yesterday's closing prices.
The Computer - Micro Computers industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 217, placing it within the bottom 13% of over 250 industries.