The latest trading session saw HP (HPQ) ending at $34.68, denoting a +1.4% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily gain of 0.24%. Elsewhere, the Dow saw an upswing of 0.16%, while the tech-heavy Nasdaq appreciated by 0.08%.
The personal computer and printer maker's stock has climbed by 3.79% in the past month, exceeding the Computer and Technology sector's gain of 1.76% and the S&P 500's gain of 2.37%.
The upcoming earnings release of HP will be of great interest to investors. The company's earnings report is expected on February 27, 2025. On that day, HP is projected to report earnings of $0.74 per share, which would represent a year-over-year decline of 8.64%. At the same time, our most recent consensus estimate is projecting a revenue of $13.48 billion, reflecting a 2.25% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.56 per share and revenue of $55.11 billion, indicating changes of +5.33% and +2.89%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for HP. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. HP is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, HP is at present trading with a Forward P/E ratio of 9.61. This expresses a discount compared to the average Forward P/E of 14 of its industry.
Also, we should mention that HPQ has a PEG ratio of 2.92. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. HPQ's industry had an average PEG ratio of 1.67 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 168, placing it within the bottom 34% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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