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HP (HPQ) Declines More Than Market: Some Information for Investors
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In the latest close session, HP (HPQ - Free Report) was down 2.54% at $25.34. The stock's change was less than the S&P 500's daily loss of 0.79%. On the other hand, the Dow registered a loss of 0.94%, and the technology-centric Nasdaq decreased by 0.92%.
Prior to today's trading, shares of the personal computer and printer maker had gained 3.26% lagged the Computer and Technology sector's gain of 7.88% and the S&P 500's gain of 5.22%.
The upcoming earnings release of HP will be of great interest to investors. The company is predicted to post an EPS of $0.74, indicating a 10.84% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.69 billion, up 1.26% from the year-ago period.
HPQ's full-year Zacks Consensus Estimates are calling for earnings of $3.09 per share and revenue of $54.5 billion. These results would represent year-over-year changes of -8.58% and +1.75%, respectively.
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 a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, HP holds a Zacks Rank of #3 (Hold).
In terms of valuation, HP is currently trading at a Forward P/E ratio of 8.43. Its industry sports an average Forward P/E of 11.83, so one might conclude that HP is trading at a discount comparatively.
We can also see that HPQ currently has a PEG ratio of 2.11. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Micro Computers industry currently had an average PEG ratio of 1.58 as of yesterday's close.
The Computer - Micro Computers industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 47, putting it in the top 20% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
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HP (HPQ) Declines More Than Market: Some Information for Investors
In the latest close session, HP (HPQ - Free Report) was down 2.54% at $25.34. The stock's change was less than the S&P 500's daily loss of 0.79%. On the other hand, the Dow registered a loss of 0.94%, and the technology-centric Nasdaq decreased by 0.92%.
Prior to today's trading, shares of the personal computer and printer maker had gained 3.26% lagged the Computer and Technology sector's gain of 7.88% and the S&P 500's gain of 5.22%.
The upcoming earnings release of HP will be of great interest to investors. The company is predicted to post an EPS of $0.74, indicating a 10.84% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.69 billion, up 1.26% from the year-ago period.
HPQ's full-year Zacks Consensus Estimates are calling for earnings of $3.09 per share and revenue of $54.5 billion. These results would represent year-over-year changes of -8.58% and +1.75%, respectively.
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 a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, HP holds a Zacks Rank of #3 (Hold).
In terms of valuation, HP is currently trading at a Forward P/E ratio of 8.43. Its industry sports an average Forward P/E of 11.83, so one might conclude that HP is trading at a discount comparatively.
We can also see that HPQ currently has a PEG ratio of 2.11. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Micro Computers industry currently had an average PEG ratio of 1.58 as of yesterday's close.
The Computer - Micro Computers industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 47, putting it in the top 20% of all 250+ industries.
The Zacks Industry Rank is ordered 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.