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HP (HPQ) Gains As Market Dips: What You Should Know
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In the latest trading session, HP (HPQ - Free Report) closed at $28.64, marking a +0.99% move from the previous day. This move outpaced the S&P 500's daily loss of 0.08%. Meanwhile, the Dow lost 0.34%, and the Nasdaq, a tech-heavy index, added 11.55%.
Prior to today's trading, shares of the personal computer and printer maker had gained 0.53% over the past month. This has outpaced the Computer and Technology sector's loss of 8.41% and the S&P 500's loss of 1.03% in that time.
HP will be looking to display strength as it nears its next earnings release. On that day, HP is projected to report earnings of $0.75 per share, which would represent a year-over-year decline of 31.82%. Our most recent consensus estimate is calling for quarterly revenue of $14.26 billion, down 16.25% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.35 per share and revenue of $57.25 billion, which would represent changes of -17.89% and -9.11%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for HP. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Within the past 30 days, our consensus EPS projection remained stagnant. HP is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that HP has a Forward P/E ratio of 8.48 right now. For comparison, its industry has an average Forward P/E of 8.48, which means HP is trading at a no noticeable deviation to the group.
Also, we should mention that HPQ has a PEG ratio of 3.1. 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 industry currently had an average PEG ratio of 2.39 as of yesterday's close.
The Computer - Mini computers industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 227, putting it in the bottom 10% 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.
To follow HPQ in the coming trading sessions, be sure to utilize Zacks.com.
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HP (HPQ) Gains As Market Dips: What You Should Know
In the latest trading session, HP (HPQ - Free Report) closed at $28.64, marking a +0.99% move from the previous day. This move outpaced the S&P 500's daily loss of 0.08%. Meanwhile, the Dow lost 0.34%, and the Nasdaq, a tech-heavy index, added 11.55%.
Prior to today's trading, shares of the personal computer and printer maker had gained 0.53% over the past month. This has outpaced the Computer and Technology sector's loss of 8.41% and the S&P 500's loss of 1.03% in that time.
HP will be looking to display strength as it nears its next earnings release. On that day, HP is projected to report earnings of $0.75 per share, which would represent a year-over-year decline of 31.82%. Our most recent consensus estimate is calling for quarterly revenue of $14.26 billion, down 16.25% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.35 per share and revenue of $57.25 billion, which would represent changes of -17.89% and -9.11%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for HP. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Within the past 30 days, our consensus EPS projection remained stagnant. HP is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that HP has a Forward P/E ratio of 8.48 right now. For comparison, its industry has an average Forward P/E of 8.48, which means HP is trading at a no noticeable deviation to the group.
Also, we should mention that HPQ has a PEG ratio of 3.1. 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 industry currently had an average PEG ratio of 2.39 as of yesterday's close.
The Computer - Mini computers industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 227, putting it in the bottom 10% 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.
To follow HPQ in the coming trading sessions, be sure to utilize Zacks.com.