Back to top

Image: Bigstock

HP (HPQ) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

In the latest trading session, HP (HPQ - Free Report) closed at $33.45, marking a -0.39% move from the previous day. This change lagged the S&P 500's 0.12% loss on the day. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq gained 0.44%.

Prior to today's trading, shares of the personal computer and printer maker had gained 4.58% over the past month. This has lagged the Computer and Technology sector's gain of 10.34% and the S&P 500's gain of 8.25% in that time.

Wall Street will be looking for positivity from HP as it approaches its next earnings report date. In that report, analysts expect HP to post earnings of $1.05 per share. This would mark year-over-year growth of 5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.8 billion, up 3.34% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.30 per share and revenue of $65.97 billion, which would represent changes of +13.46% and +3.92%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for HP. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% lower. HP is currently a Zacks Rank #4 (Sell).

Looking at its valuation, HP is holding a Forward P/E ratio of 7.8. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 7.8.

Meanwhile, HPQ's PEG ratio is currently 1.95. 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 2.05 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 180, putting it in the bottom 29% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


HP Inc. (HPQ) - free report >>

Published in