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HP (HPQ) Declines More Than Market: Some Information for Investors

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The most recent trading session ended with HP (HPQ - Free Report) standing at $37.71, reflecting a -0.82% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily loss of 0.16%. Meanwhile, the Dow experienced a drop of 0.14%, and the technology-dominated Nasdaq saw a decrease of 0.06%.

Heading into today, shares of the personal computer and printer maker had gained 4.74% over the past month, outpacing the Computer and Technology sector's gain of 0.47% and the S&P 500's gain of 1.96% in that time.

The investment community will be closely monitoring the performance of HP in its forthcoming earnings report. The company is predicted to post an EPS of $0.86, indicating constancy compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $13.31 billion, up 0.85% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.45 per share and revenue of $53.59 billion, indicating changes of +5.18% and -0.31%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for HP. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. HP presently features a Zacks Rank of #2 (Buy).

Looking at valuation, HP is presently trading at a Forward P/E ratio of 11.03. This signifies no noticeable deviation in comparison to the average Forward P/E of 11.03 for its industry.

Also, we should mention that HPQ has a PEG ratio of 2.42. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computer - Mini computers was holding an average PEG ratio of 2.42 at yesterday's closing price.

The Computer - Mini computers industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 4, this industry ranks in the top 2% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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