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HP (HPQ) Exceeds Market Returns: Some Facts to Consider

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In the latest close session, HP (HPQ - Free Report) was up +2.03% at $27.14. The stock exceeded the S&P 500, which registered a gain of 0.32% for the day. Elsewhere, the Dow saw an upswing of 1.04%, while the tech-heavy Nasdaq appreciated by 0.14%.

The personal computer and printer maker's shares have seen an increase of 8.48% over the last month, surpassing the Computer and Technology sector's gain of 6.64% and the S&P 500's gain of 3.08%.

The investment community will be closely monitoring the performance of HP in its forthcoming earnings report. The company is scheduled to release its earnings on August 27, 2025. On that day, HP is projected to report earnings of $0.74 per share, which would represent a year-over-year decline of 10.84%. In the meantime, our current consensus estimate forecasts the revenue to be $13.85 billion, indicating a 2.42% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.09 per share and a revenue of $54.71 billion, signifying shifts of -8.58% and +2.15%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for HP. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.06% upward. HP is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that HP has a Forward P/E ratio of 8.61 right now. For comparison, its industry has an average Forward P/E of 13.37, which means HP is trading at a discount to the group.

Investors should also note that HPQ has a PEG ratio of 2.15 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. HPQ's industry had an average PEG ratio of 1.53 as of yesterday's close.

The Computer - Micro Computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 41% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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