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Why HP (HPQ) Dipped More Than Broader Market Today

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In the latest close session, HP (HPQ - Free Report) was down 6.77% at $22.87. This move lagged the S&P 500's daily loss of 0.92%. Elsewhere, the Dow saw a downswing of 1.18%, while the tech-heavy Nasdaq depreciated by 0.84%.

The stock of personal computer and printer maker has fallen by 10.38% in the past month, lagging the Computer and Technology sector's gain of 1.64% and the S&P 500's gain of 1.48%.

Investors will be eagerly watching for the performance of HP in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 25, 2025. The company's upcoming EPS is projected at $0.92, signifying a 1.08% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $14.79 billion, up 5.23% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $3.11 per share and a revenue of $55.2 billion, demonstrating changes of -7.99% and 0%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for HP. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.54% lower. HP is currently a Zacks Rank #4 (Sell).

Looking at its valuation, HP is holding a Forward P/E ratio of 7.4. This valuation marks a discount compared to its industry average Forward P/E of 12.58.

Also, we should mention that HPQ has a PEG ratio of 1.85. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. HPQ's industry had an average PEG ratio of 1.34 as of yesterday's close.

The Computer - Micro Computers industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 49, finds itself in the top 20% echelons 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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