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HP (HPQ) closed at $38.42 in the latest trading session, marking a -0.72% move from the prior day. This move lagged the S&P 500's daily gain of 0.08%. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, lost 0.28%.
Heading into today, shares of the personal computer and printer maker had gained 5.45% over the past month, outpacing the Computer and Technology sector's loss of 5.11% and the S&P 500's gain of 0.22% 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 $1.03, up 11.96% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.61 billion, up 6.16% from the year-ago period.
HPQ's full-year Zacks Consensus Estimates are calling for earnings of $4.16 per share and revenue of $65.98 billion. These results would represent year-over-year changes of +9.76% and +3.92%, respectively.
Investors might also notice recent changes to analyst estimates for HP. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. HP is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, HP is holding a Forward P/E ratio of 9.31. This valuation marks a discount compared to its industry's average Forward P/E of 19.44.
It is also worth noting that HPQ currently has a PEG ratio of 3.63. 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. Computer - Mini computers stocks are, on average, holding a PEG ratio of 2.62 based on yesterday's closing prices.
The Computer - Mini computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 58, which puts it in the top 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow HPQ in the coming trading sessions, be sure to utilize Zacks.com.
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