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In the latest market close, HP (HPQ) reached $33.45, with a -0.65% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.16%. On the other hand, the Dow registered a gain of 0.25%, and the technology-centric Nasdaq decreased by 0.06%.
Coming into today, shares of the personal computer and printer maker had lost 3.63% in the past month. In that same time, the Computer and Technology sector lost 0.17%, while the S&P 500 lost 2.8%.
Analysts and investors alike will be keeping a close eye on the performance of HP in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.74, showcasing an 8.64% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.48 billion, up 2.25% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.56 per share and revenue of $55.11 billion, indicating changes of +5.33% and +2.89%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for HP. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's 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 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. HP is currently a Zacks Rank #3 (Hold).
Digging into valuation, HP currently has a Forward P/E ratio of 9.46. This denotes a discount relative to the industry's average Forward P/E of 13.81.
One should further note that HPQ currently holds a PEG ratio of 2.87. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Computer - Micro Computers industry was having an average PEG ratio of 1.76.
The Computer - Micro Computers industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 91, placing it within the top 37% of over 250 industries.