HP (HPQ - Free Report) closed the most recent trading day at $19.09, moving -0.83% from the previous trading session. This move lagged the S&P 500's daily gain of 0.08%. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq added 0.38%.
Heading into today, shares of the personal computer and printer maker had lost 6.69% over the past month, lagging the Computer and Technology sector's loss of 3.22% and the S&P 500's loss of 3.57% in that time.
Investors will be hoping for strength from HPQ as it approaches its next earnings release. The company is expected to report EPS of $0.55, up 5.77% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $14.50 billion, down 0.56% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.17 per share and revenue of $58.70 billion, which would represent changes of +7.43% and +0.38%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for HPQ. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. HPQ currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that HPQ has a Forward P/E ratio of 8.86 right now. This represents a discount compared to its industry's average Forward P/E of 9.75.
It is also worth noting that HPQ currently has a PEG ratio of 2.9. 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 Computer - Mini computers industry currently had an average PEG ratio of 2.28 as of yesterday's close.
The Computer - Mini computers industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 98, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.