Back to top

Image: Bigstock

HP (HPQ) Stock Moves -1.33%: What You Should Know

Read MoreHide Full Article

HP (HPQ - Free Report) closed the most recent trading day at $19.28, moving -1.33% from the previous trading session. This move was narrower than the S&P 500's daily loss of 2.93%. At the same time, the Dow lost 3.05%, and the tech-heavy Nasdaq lost 3.02%.

Coming into today, shares of the personal computer and printer maker had lost 8.31% in the past month. In that same time, the Computer and Technology sector lost 2.19%, while the S&P 500 lost 2.71%.

Wall Street will be looking for positivity from HPQ as it approaches its next earnings report date. This is expected to be August 22, 2019. On that day, HPQ is projected to report earnings of $0.55 per share, which would represent year-over-year growth of 5.77%. Our most recent consensus estimate is calling for quarterly revenue of $14.50 billion, down 0.56% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.17 per share and revenue of $58.70 billion. These totals would mark changes of +7.43% and +0.38%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for HPQ. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. HPQ is currently sporting a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that HPQ has a Forward P/E ratio of 9 right now. This valuation marks a discount compared to its industry's average Forward P/E of 9.68.

It is also worth noting that HPQ currently has a PEG ratio of 2.94. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Mini computers industry currently had an average PEG ratio of 2.35 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 3, putting it in the top 2% 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


HP Inc. (HPQ) - free report >>

Published in