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HP (HPQ) Stock Moves -0.08%: What You Should Know

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HP (HPQ - Free Report) closed the most recent trading day at $38.65, moving -0.08% from the previous trading session. This move was narrower than the S&P 500's daily loss of 0.41%. Meanwhile, the Dow lost 0.01%, and the Nasdaq, a tech-heavy index, added 0.13%.

Coming into today, shares of the personal computer and printer maker had gained 7% in the past month. In that same time, the Computer and Technology sector lost 1.8%, while the S&P 500 gained 2.36%.

Wall Street will be looking for positivity from HP as it approaches its next earnings report date. On that day, HP is projected to report earnings of $1.03 per share, which would represent year-over-year growth of 11.96%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.61 billion, up 6.16% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.16 per share and revenue of $65.98 billion. These totals would mark changes of +9.76% and +3.92%, respectively, from last year.

Any recent changes to analyst estimates for HP should also be noted by investors. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. HP is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that HP has a Forward P/E ratio of 9.3 right now. This valuation marks a discount compared to its industry's average Forward P/E of 19.42.

Meanwhile, HPQ's PEG ratio is currently 3.63. 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. Computer - Mini computers stocks are, on average, holding a PEG ratio of 2.63 based on yesterday's closing prices.

The Computer - Mini computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 203, which puts it in the bottom 21% 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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