HP (HPQ) closed on the most recent trading day at $ 38.65, or -0.08% from the previous trading session. That move was narrower than the S&P 500’s 0.41% daily loss. Meanwhile, the Dow Jones lost 0.01% and the technology-heavy Nasdaq added 0.13%.
As of today, shares of the personal computer and printer maker have gained 7% over the past month. At the same time, the IT and tech sector lost 1.8%, while the S&P 500 gained 2.36%.
Wall Street will research HP’s positivity as the date of its next earnings report approaches. On that day, HP is expected to report earnings of $ 1.03 per share, which would represent 11.96% year-over-year growth. Meanwhile, Zacks’ consensus estimate for revenue projects net sales of $ 16.61 billion, up 6.16% from the previous year.
For the full year, our consensus estimates from Zacks suggest analysts expect earnings of $ 4.16 per share and revenue of $ 65.98 billion. These totals would mark changes of + 9.76% and + 3.92%, respectively, from a year ago.
Any recent changes in analysts’ estimates for HP should also be noted by investors. These revisions generally reflect the latest short-term business trends, which can change frequently. As such, the positive estimate revisions reflect the optimism of analysts about the business and profitability of the company.
Based on our research, we believe these estimate revisions are directly related to stock movements close to the team. We have developed the Zacks Rank to capitalize on this phenomenon. Our system takes these rating changes into account and provides a clear and actionable scoring model.
Zacks’ ranking system ranges from # 1 (strong buy) to # 5 (strong sell). It has a remarkable, externally audited track record of success, with the No.1 stocks generating an average annual return of + 25% since 1988. Over the past 30 days, our consensus projection on EPS has remained stagnant. HP currently holds a Zacks rank of 3 (Maintain).
Valuation is also important, so investors should note that HP currently has a forward P / E ratio of 9.3. This valuation marks a discount compared to the average forward P / E of its sector of 19.42.
Meanwhile, HPQ’s PEG ratio is currently 3.63. The PEG ratio is similar to the widely used P / E ratio, but this metric also takes into account the expected profit growth rate of the company. Computer – Minicomputer stocks have, on average, a PEG ratio of 2.63 based on yesterday’s closing prices.
The Computing – Minicomputers industry belongs to the Computing and Technology sector. This industry currently has a Zacks Industry Rank of 203, which places it in the lowest 21% of all 250+ industries.
The Zacks Industry Rankings assesses the strength of our individual industry groups by measuring the average Zacks rank of individual stocks within 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.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.