In the latest trading session, HP (HPQ) closed at $19.53, marking a -0.41% move from the previous day. This move lagged the S&P 500's daily loss of 0.16%. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, lost 0.26%.
Heading into today, shares of the personal computer and printer maker had gained 0.1% over the past month, outpacing the Computer and Technology sector's loss of 0.03% and the S&P 500's loss of 0.19% in that time.
HPQ will be looking to display strength as it nears its next earnings release. On that day, HPQ is projected to report earnings of $0.51 per share, which would represent year-over-year growth of 6.25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.06 billion, up 0.43% from the year-ago period.
HPQ's full-year Zacks Consensus Estimates are calling for earnings of $2.14 per share and revenue of $58.94 billion. These results would represent year-over-year changes of +5.94% and +0.8%, respectively.
Investors should also note any recent changes to analyst estimates for HPQ. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. HPQ is currently a Zacks Rank #3 (Hold).
In terms of valuation, HPQ is currently trading at a Forward P/E ratio of 9.18. This valuation marks a discount compared to its industry's average Forward P/E of 15.3.
It is also worth noting that HPQ currently has a PEG ratio of 3.24. 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 2.66 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 11, putting it in the top 5% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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