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HP (HPQ) Dips More Than Broader Markets: What You Should Know
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HP (HPQ - Free Report) closed the most recent trading day at $29.41, moving -0.47% from the previous trading session. This move lagged the S&P 500's daily loss of 0.25%. Elsewhere, the Dow gained 0.24%, while the tech-heavy Nasdaq lost 1.88%.
Heading into today, shares of the personal computer and printer maker had gained 6.83% over the past month, lagging the Computer and Technology sector's gain of 6.89% and outpacing the S&P 500's gain of 1.48% in that time.
HP will be looking to display strength as it nears its next earnings release. In that report, analysts expect HP to post earnings of $0.75 per share. This would mark a year-over-year decline of 30.56%. Our most recent consensus estimate is calling for quarterly revenue of $13.22 billion, down 19.85% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.27 per share and revenue of $55.24 billion. These totals would mark changes of -19.85% and -12.3%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for HP. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.66% lower within the past month. HP is currently a Zacks Rank #3 (Hold).
Looking at its valuation, HP is holding a Forward P/E ratio of 9.04. For comparison, its industry has an average Forward P/E of 9.04, which means HP is trading at a no noticeable deviation to the group.
It is also worth noting that HPQ currently has a PEG ratio of 3.31. 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 - Mini computers was holding an average PEG ratio of 2.75 at yesterday's closing price.
The Computer - Mini computers industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 52, putting it in the top 21% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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HP (HPQ) Dips More Than Broader Markets: What You Should Know
HP (HPQ - Free Report) closed the most recent trading day at $29.41, moving -0.47% from the previous trading session. This move lagged the S&P 500's daily loss of 0.25%. Elsewhere, the Dow gained 0.24%, while the tech-heavy Nasdaq lost 1.88%.
Heading into today, shares of the personal computer and printer maker had gained 6.83% over the past month, lagging the Computer and Technology sector's gain of 6.89% and outpacing the S&P 500's gain of 1.48% in that time.
HP will be looking to display strength as it nears its next earnings release. In that report, analysts expect HP to post earnings of $0.75 per share. This would mark a year-over-year decline of 30.56%. Our most recent consensus estimate is calling for quarterly revenue of $13.22 billion, down 19.85% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.27 per share and revenue of $55.24 billion. These totals would mark changes of -19.85% and -12.3%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for HP. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.66% lower within the past month. HP is currently a Zacks Rank #3 (Hold).
Looking at its valuation, HP is holding a Forward P/E ratio of 9.04. For comparison, its industry has an average Forward P/E of 9.04, which means HP is trading at a no noticeable deviation to the group.
It is also worth noting that HPQ currently has a PEG ratio of 3.31. 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 - Mini computers was holding an average PEG ratio of 2.75 at yesterday's closing price.
The Computer - Mini computers industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 52, putting it in the top 21% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.