HP (HPQ) closed at $19.93 in the latest trading session, marking a -0.1% move from the prior day. This change was narrower than the S&P 500's daily loss of 0.75%. Elsewhere, the Dow lost 0.61%, while the tech-heavy Nasdaq lost 0.57%.
Heading into today, shares of the personal computer and printer maker had gained 1.17% over the past month, lagging the Computer and Technology sector's gain of 4.99% and the S&P 500's gain of 4% in that time.
Investors will be hoping for strength from HPQ as it approaches its next earnings release. In that report, analysts expect HPQ to post earnings of $0.51 per share. This would mark 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. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. HPQ currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that HPQ has a Forward P/E ratio of 9.34 right now. Its industry sports an average Forward P/E of 15.74, so we one might conclude that HPQ is trading at a discount comparatively.
Investors should also note that HPQ has a PEG ratio of 3.3 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Mini computers was holding an average PEG ratio of 2.67 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 14, putting it in the top 6% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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