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HP (HPQ) Suffers a Larger Drop Than the General Market: Key Insights
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HP (HPQ - Free Report) closed the most recent trading day at $30.11, moving -2.41% from the previous trading session. This move lagged the S&P 500's daily loss of 1.09%. At the same time, the Dow lost 0.34%, and the tech-heavy Nasdaq lost 2.15%.
The stock of personal computer and printer maker has fallen by 10.99% in the past month, lagging the Computer and Technology sector's gain of 1.99% and the S&P 500's gain of 2.44%.
The investment community will be paying close attention to the earnings performance of HP in its upcoming release. On that day, HP is projected to report earnings of $0.75 per share, which would represent a year-over-year decline of 19.35%. Our most recent consensus estimate is calling for quarterly revenue of $15.47 billion, up 5.69% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.23 per share and revenue of $60.01 billion, which would represent changes of +3.53% and +8.52%, respectively, from the prior year.
Any recent changes to analyst estimates for HP should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, HP boasts a Zacks Rank of #1 (Strong Buy).
In the context of valuation, HP is at present trading with a Forward P/E ratio of 9.55. This denotes a discount relative to the industry average Forward P/E of 18.14.
It's also important to note that HPQ currently trades at a PEG ratio of 1.6. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Computer - Micro Computers industry stood at 1.6 at the close of the market yesterday.
The Computer - Micro Computers industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 15, placing it within the top 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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HP (HPQ) Suffers a Larger Drop Than the General Market: Key Insights
HP (HPQ - Free Report) closed the most recent trading day at $30.11, moving -2.41% from the previous trading session. This move lagged the S&P 500's daily loss of 1.09%. At the same time, the Dow lost 0.34%, and the tech-heavy Nasdaq lost 2.15%.
The stock of personal computer and printer maker has fallen by 10.99% in the past month, lagging the Computer and Technology sector's gain of 1.99% and the S&P 500's gain of 2.44%.
The investment community will be paying close attention to the earnings performance of HP in its upcoming release. On that day, HP is projected to report earnings of $0.75 per share, which would represent a year-over-year decline of 19.35%. Our most recent consensus estimate is calling for quarterly revenue of $15.47 billion, up 5.69% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.23 per share and revenue of $60.01 billion, which would represent changes of +3.53% and +8.52%, respectively, from the prior year.
Any recent changes to analyst estimates for HP should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, HP boasts a Zacks Rank of #1 (Strong Buy).
In the context of valuation, HP is at present trading with a Forward P/E ratio of 9.55. This denotes a discount relative to the industry average Forward P/E of 18.14.
It's also important to note that HPQ currently trades at a PEG ratio of 1.6. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Computer - Micro Computers industry stood at 1.6 at the close of the market yesterday.
The Computer - Micro Computers industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 15, placing it within the top 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.
You can find more information on all of these metrics, and much more, on Zacks.com.