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HP (HPQ) Outpaces Stock Market Gains: What You Should Know

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HP (HPQ - Free Report) closed the most recent trading day at $30.53, moving +0.43% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.28%. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq gained 3.77%.

Prior to today's trading, shares of the personal computer and printer maker had gained 10.19% over the past month. This has outpaced the Computer and Technology sector's gain of 9.09% and the S&P 500's gain of 3.54% 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. In that report, analysts expect HP to post earnings of $0.74 per share. This would mark a year-over-year decline of 32.73%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.15 billion, down 16.91% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.32 per share and revenue of $56.92 billion, which would represent changes of -18.63% and -9.62%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for HP. Recent revisions tend to reflect the latest near-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. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.93% lower within the past month. HP currently has a Zacks Rank of #3 (Hold).

Digging into valuation, HP currently has a Forward P/E ratio of 9.17. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 9.17.

Meanwhile, HPQ's PEG ratio is currently 3.35. 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. HPQ's industry had an average PEG ratio of 2.69 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 193, putting it in the bottom 24% 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

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