In the latest trading session, HP (HPQ) closed at $32.79, marking a +0.37% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.83%. On the other hand, the Dow registered a gain of 1.65%, and the technology-centric Nasdaq increased by 2.45%.
Shares of the personal computer and printer maker have depreciated by 3.46% over the course of the past month, outperforming the Computer and Technology sector's loss of 3.84% and lagging the S&P 500's loss of 3.31%.
Investors will be eagerly watching for the performance of HP in its upcoming earnings disclosure. In that report, analysts expect HP to post earnings of $0.74 per share. This would mark a year-over-year decline of 8.64%. Simultaneously, our latest consensus estimate expects the revenue to be $13.48 billion, showing a 2.25% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.56 per share and revenue of $55.11 billion. These totals would mark changes of +5.33% and +2.89%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for HP. These revisions help to show the ever-changing nature 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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. HP currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that HP has a Forward P/E ratio of 9.18 right now. This indicates a discount in contrast to its industry's Forward P/E of 12.78.
We can also see that HPQ currently has a PEG ratio of 2.79. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Computer - Micro Computers stocks are, on average, holding a PEG ratio of 1.66 based on yesterday's closing prices.
The Computer - Micro Computers industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 86, this industry ranks in the top 35% of all industries, numbering over 250.