HP Inc (HPQ Quick QuoteHPQ - Free Report) has slipped to a Zacks Rank #5 (Strong Sell) with earnings just a few weeks away. This is not a good signal for investors that want to trade around earnings and it could extend the stock’s losing streak to 3 – as in the number of times the stock has traded lower in the session following the report.

HP Inc is part of the old Hewlett-Packard and is still a widely held stock.

Earnings History

The earnings history is pretty good of late, with a couple of beats of the Zacks Consensus Estimate and a few meets.  On the top line I see only one miss in the last five quarters, so that too is a good thing to see.

Estimates

Here is where we separate the pretenders from the contenders.  Estimates for HP Inc have fallen of late, moving from $1.62 in August down to $1.60 at the current level.  That doesn’t seem like enough to merit a Zacks Rank #5 (Strong Sell) but then I looked at the next fiscal year.

The fiscal 2018 estimate has slipped from $1.68 to $1.65, and again this is another small move.

Going Forward

This stock is a probably the “softest” Zacks Rank #5 (Strong Sell) that I have ever seen.  That said, a move to a #5 before earnings is not a good signal.

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HP Inc. Price, Consensus and EPS Surprise

HP Inc. Price, Consensus and EPS Surprise | HP Inc. Quote