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HP (HPQ) Gains As Market Dips: What You Should Know
HP (HPQ - Free Report) closed the most recent trading day at $29.66, moving +0.17% from the previous trading session. This change outpaced the S&P 500's 0.88% loss on the day. Elsewhere, the Dow lost 0.73%, while the tech-heavy Nasdaq lost 4.59%.
Heading into today, shares of the personal computer and printer maker had gained 2.71% over the past month, lagging the Computer and Technology sector's gain of 14.64% and the S&P 500's gain of 5.83% in that time.
Investors will be hoping for strength from HP as it approaches its next earnings release, which is expected to be February 28, 2023. On that day, HP is projected to report earnings of $0.74 per share, which would represent a year-over-year decline of 32.73%. Meanwhile, our latest consensus estimate is calling for revenue of $14.15 billion, down 16.91% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.33 per share and revenue of $56.92 billion. These totals would mark changes of -18.38% and -9.62%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for HP. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 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 has moved 0.6% lower. HP currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, HP is holding a Forward P/E ratio of 8.9. For comparison, its industry has an average Forward P/E of 8.9, which means HP is trading at a no noticeable deviation to the group.
Investors should also note that HPQ has a PEG ratio of 3.25 right now. 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. HPQ's industry had an average PEG ratio of 2.63 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 220, putting it in the bottom 13% 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.