HP (HPQ) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, HP (HPQ) closed at $29.23, marking a +0.76% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.25%. At the same time, the Dow added 0.08%, and the tech-heavy Nasdaq gained 7.26%.
Heading into today, shares of the personal computer and printer maker had gained 7.29% over the past month, lagging the Computer and Technology sector's gain of 12.65% and outpacing the S&P 500's gain of 5.73% in that time.
HP will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.74, down 32.73% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $14.15 billion, down 16.91% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.33 per share and revenue of $56.92 billion, which would represent changes of -18.38% and -9.62%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for HP. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.6% lower within the past month. HP is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, HP currently has a Forward P/E ratio of 8.72. For comparison, its industry has an average Forward P/E of 8.72, which means HP is trading at a no noticeable deviation to the group.
Investors should also note that HPQ has a PEG ratio of 3.19 right now. 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. HPQ's industry had an average PEG ratio of 2.53 as of yesterday's close.
The Computer - Mini computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 187, which puts it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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