HP (HPQ) Stock Sinks As Market Gains: What You Should Know

In the latest close session, HP (HPQ) was down 2.92% at $18.94. The stock's change was less than the S&P 500's daily gain of 0.44%. On the other hand, the Dow registered a gain of 0.36%, and the technology-centric Nasdaq increased by 0.54%.

The stock of personal computer and printer maker has risen by 0.26% in the past month, leading the Computer and Technology sector's loss of 2.47% and the S&P 500's loss of 3.31%.

Market participants will be closely following the financial results of HP in its upcoming release. The company is expected to report EPS of $0.71, unchanged from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $14.05 billion, indicating a 6.26% increase compared to the same quarter of the previous year.

HPQ's full-year Zacks Consensus Estimates are calling for earnings of $2.84 per share and revenue of $56.83 billion. These results would represent year-over-year changes of -8.97% and +2.77%, respectively.

Investors might also notice recent changes to analyst estimates for HP. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, HP boasts a Zacks Rank of #4 (Sell).

With respect to valuation, HP is currently being traded at a Forward P/E ratio of 6.88. This denotes a discount relative to the industry average Forward P/E of 12.33.

We can additionally observe that HPQ currently boasts a PEG ratio of 5.42. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. HPQ's industry had an average PEG ratio of 1.75 as of yesterday's close.

The Computer - Micro Computers industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 97, placing it within the top 40% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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