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HP (HPQ) Stock Sinks As Market Gains: What You Should Know
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HP (HPQ - Free Report) closed at $30.14 in the latest trading session, marking a -1.6% move from the prior day. This move lagged the S&P 500's daily gain of 0.18%.
Heading into today, shares of the personal computer and printer maker had gained 6.69% over the past month, outpacing the Computer and Technology sector's loss of 1.76% and the S&P 500's gain of 2.96% in that time.
Investors will be hoping for strength from HPQ as it approaches its next earnings release. On that day, HPQ is projected to report earnings of $0.88 per share, which would represent year-over-year growth of 41.94%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.36 billion, up 0.66% from the year-ago period.
HPQ's full-year Zacks Consensus Estimates are calling for earnings of $3.74 per share and revenue of $62.16 billion. These results would represent year-over-year changes of +64.04% and +9.74%, respectively.
It is also important to note the recent changes to analyst estimates for HPQ. These recent revisions tend to reflect the evolving nature of short-term business trends. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. HPQ currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, HPQ is currently trading at a Forward P/E ratio of 8.2. For comparison, its industry has an average Forward P/E of 17.08, which means HPQ is trading at a discount to the group.
Investors should also note that HPQ has a PEG ratio of 0.65 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 industry currently had an average PEG ratio of 1.06 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 12, 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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HP (HPQ) Stock Sinks As Market Gains: What You Should Know
HP (HPQ - Free Report) closed at $30.14 in the latest trading session, marking a -1.6% move from the prior day. This move lagged the S&P 500's daily gain of 0.18%.
Heading into today, shares of the personal computer and printer maker had gained 6.69% over the past month, outpacing the Computer and Technology sector's loss of 1.76% and the S&P 500's gain of 2.96% in that time.
Investors will be hoping for strength from HPQ as it approaches its next earnings release. On that day, HPQ is projected to report earnings of $0.88 per share, which would represent year-over-year growth of 41.94%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.36 billion, up 0.66% from the year-ago period.
HPQ's full-year Zacks Consensus Estimates are calling for earnings of $3.74 per share and revenue of $62.16 billion. These results would represent year-over-year changes of +64.04% and +9.74%, respectively.
It is also important to note the recent changes to analyst estimates for HPQ. These recent revisions tend to reflect the evolving nature of short-term business trends. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. HPQ currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, HPQ is currently trading at a Forward P/E ratio of 8.2. For comparison, its industry has an average Forward P/E of 17.08, which means HPQ is trading at a discount to the group.
Investors should also note that HPQ has a PEG ratio of 0.65 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 industry currently had an average PEG ratio of 1.06 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 12, 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.