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HP (HPQ) Dips More Than Broader Market: What You Should Know

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HP (HPQ - Free Report) closed the most recent trading day at $27.20, moving -4.93% from the previous trading session. This change lagged the S&P 500's daily loss of 0.63%. At the same time, the Dow lost 0.65%, and the tech-heavy Nasdaq lost 0.47%.

Prior to today's trading, shares of the personal computer and printer maker had gained 2.54% outpaced the Computer and Technology sector's gain of 1.9% and the S&P 500's gain of 0.92%.

The investment community will be closely monitoring the performance of HP in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.91, reflecting a 2.15% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $14.46 billion, indicating a 2.91% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $3.1 per share and a revenue of $54.99 billion, demonstrating changes of -8.28% and +2.67%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for HP. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, HP boasts a Zacks Rank of #3 (Hold).

From a valuation perspective, HP is currently exchanging hands at a Forward P/E ratio of 9.22. This denotes a discount relative to the industry average Forward P/E of 14.18.

One should further note that HPQ currently holds a PEG ratio of 2.3. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computer - Micro Computers was holding an average PEG ratio of 1.63 at yesterday's closing price.

The Computer - Micro Computers industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 20, finds itself in the top 9% echelons of all 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.

To follow HPQ in the coming trading sessions, be sure to utilize Zacks.com.


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