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HP (HPQ) ended the recent trading session at $23.74, demonstrating a -1.25% swing from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.17%. Meanwhile, the Dow lost 0.39%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Prior to today's trading, shares of the personal computer and printer maker had lost 16.85% over the past month. This has lagged the Computer and Technology sector's loss of 6.26% and the S&P 500's loss of 3.94% in that time.
Investors will be eagerly watching for the performance of HP in its upcoming earnings disclosure. The company is expected to report EPS of $0.80, down 2.44% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $13.26 billion, indicating a 3.6% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.45 per share and revenue of $54.64 billion. These totals would mark changes of +2.07% and +2.03%, respectively, from last year.
Any recent changes to analyst estimates for HP should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 2.76% lower. HP currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, HP is currently exchanging hands at a Forward P/E ratio of 6.97. This valuation marks a discount compared to its industry's average Forward P/E of 8.99.
One should further note that HPQ currently holds a PEG ratio of 2.51. 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. The average PEG ratio for the Computer - Micro Computers industry stood at 1.46 at the close of the market yesterday.
The Computer - Micro Computers industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 85, this industry ranks in the top 35% of all industries, numbering over 250.