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HP (HPQ) Gains As Market Dips: What You Should Know
HP (HPQ - Free Report) closed at $29.08 in the latest trading session, marking a +0.28% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.16%. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq added 1.58%.
Heading into today, shares of the personal computer and printer maker had gained 2.11% over the past month, outpacing the Computer and Technology sector's gain of 0.99% and the S&P 500's gain of 0.84% 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 16.89% from the prior-year quarter.
HPQ's full-year Zacks Consensus Estimates are calling for earnings of $3.31 per share and revenue of $56.88 billion. These results would represent year-over-year changes of -18.87% and -9.69%, respectively.
Any recent changes to analyst estimates for HP should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.53% lower. HP is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, HP is holding a Forward P/E ratio of 8.76. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 8.76.
Also, we should mention that HPQ has a PEG ratio of 3.2. 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 was holding an average PEG ratio of 2.58 at yesterday's closing price.
The Computer - Mini computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 191, which puts it in the bottom 25% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.