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HP (HPQ) Dips More Than Broader Markets: What You Should Know
HP (HPQ - Free Report) closed the most recent trading day at $26.75, moving -0.45% from the previous trading session. This change lagged the S&P 500's daily loss of 0.4%. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq lost 4.72%.
Coming into today, shares of the personal computer and printer maker had lost 8.01% in the past month. In that same time, the Computer and Technology sector lost 8.46%, while the S&P 500 lost 5.57%.
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%. Meanwhile, our latest consensus estimate is calling for revenue of $14.26 billion, down 16.25% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.35 per share and revenue of $57.25 billion. These totals would mark changes of -17.89% and -9.11%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for HP. 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. 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 has moved 0.63% lower. HP currently has a Zacks Rank of #4 (Sell).
Investors should also note HP's current valuation metrics, including its Forward P/E ratio of 8.03. For comparison, its industry has an average Forward P/E of 8.03, which means HP is trading at a no noticeable deviation to the group.
Meanwhile, HPQ's PEG ratio is currently 2.94. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Mini computers industry currently had an average PEG ratio of 2.31 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 183, putting it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.