HP (HPQ – Free Report) closed at $ 30.14 in the last trading session, marking a movement of -1.6% from the previous day. This move lagged behind the S&P 500’s daily gain by 0.18%.
Prior to today, shares of the personal computer and printer maker had gained 6.69% over the past month, outpacing the computer and technology sector’s 1.76% loss and gain 2.96% of the S&P 500 during this period.
Investors are hoping that HPQ will strengthen as the next publication of its results approaches. On that day, HPQ is expected to report earnings of $ 0.88 per share, which would represent 41.94% year-over-year growth. Meanwhile, Zacks’ consensus estimate for revenue projects net sales of $ 15.36 billion, up 0.66% from the previous year.
HPQ’s Zacks consensus estimates for the full year project earnings of $ 3.74 per share and revenue of $ 62.16 billion. These results would represent year-over-year variations of + 64.04% and + 9.74%, respectively.
It’s also important to note the 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.
Our research shows that these changes in estimate are directly correlated with short-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes these rating changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from # 1 (strong buy) to # 5 (strong sell), has an impressive externally audited outperformance history, with # 1 stocks generating an average annual return of + 25% since 1988. Over last month, the Zacks Consensus EPS estimate rose 0.04%. HPQ currently has a Zacks rank of # 1 (strong buy).
In terms of valuation, HPQ is currently trading at a forward P / E ratio of 8.2. For comparison, his industry has an average forward P / E of 17.08, which means that HPQ is trading at a discount to the group.
Investors should also note that HPQ currently has a PEG ratio of 0.65. This popular metric is similar to the well-known P / E ratio, except that the PEG ratio also takes into account the expected rate of earnings growth of the company. The Computers – Minicomputers industry currently had an average PEG ratio of 1.06 at yesterday’s close.
The Information Technology – Minicomputers industry is part of the Information Technology and Technology sector. This group has a Zacks Industry Rank of 12, which places it in the top 5% of the 250+ industries.
The Zacks Industry Rankings assesses the strength of our individual industry groups by measuring the average Zacks rank of individual stocks within the groups. Our research shows that the top 50% of industries top the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and more, at Zacks.com.