HP (HPQ) Outperforms Broader Market: What You Need to Know
HP (HPQ) closed the latest trading day at $35.18, indicating a +1.21% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 0.01%. Elsewhere, the Dow saw an upswing of 0.09%, while the tech-heavy Nasdaq appreciated by 0.08%.
Shares of the personal computer and printer maker have depreciated by 1.75% over the course of the past month, underperforming the Computer and Technology sector's gain of 1.03% and the S&P 500's gain of 1.21%.
Analysts and investors alike will be keeping a close eye on the performance of HP in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.93, signifying a 3.33% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.96 billion, up 1% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.39 per share and a revenue of $53.46 billion, signifying shifts of +3.35% and -0.55%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for HP. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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 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 remained stagnant. HP is holding a Zacks Rank of #4 (Sell) right now.
From a valuation perspective, HP is currently exchanging hands at a Forward P/E ratio of 10.27. This indicates a discount in contrast to its industry's Forward P/E of 14.26.
Meanwhile, HPQ's PEG ratio is currently 2.53. 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 Computer - Micro Computers was holding an average PEG ratio of 1.71 at yesterday's closing price.
The Computer - Micro Computers industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 185, finds itself in the bottom 27% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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HP Inc. (HPQ) : Free Stock Analysis Report