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HP (HPQ) Stock Moves -0.19%: What You Should Know

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HP (HPQ - Free Report) closed the most recent trading day at $25.90, moving -0.19% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.64%. Elsewhere, the Dow lost 0.24%, while the tech-heavy Nasdaq lost 0.74%.

The the stock of personal computer and printer maker has risen by 14.77% in the past month, leading the Computer and Technology sector's gain of 3.67% and the S&P 500's gain of 0.38%.

The upcoming earnings release of HP will be of great interest to investors. On that day, HP is projected to report earnings of $0.80 per share, which would represent a year-over-year decline of 2.44%. Meanwhile, the latest consensus estimate predicts the revenue to be $13.36 billion, indicating a 4.34% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.39 per share and a revenue of $54.23 billion, representing changes of +0.3% and +1.26%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for HP. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4.46% lower. HP is currently sporting a Zacks Rank of #5 (Strong Sell).

In the context of valuation, HP is at present trading with a Forward P/E ratio of 7.66. This denotes a discount relative to the industry's average Forward P/E of 10.04.

One should further note that HPQ currently holds a PEG ratio of 2.76. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Computer - Micro Computers industry held an average PEG ratio of 1.55.

The Computer - Micro Computers industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 230, placing it within the bottom 7% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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