HP (HPQ) Stock Sinks As Market Gains: Here's Why

In the latest market close, HP (HPQ) reached $33.45, with a -0.65% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.16%. On the other hand, the Dow registered a gain of 0.25%, and the technology-centric Nasdaq decreased by 0.06%.Coming into today, shares of the personal computer and printer maker had lost 3.63% in the past month. In that same time, the Computer and Technology sector lost 0.17%, while the S&P 500 lost 2.8%.Analysts and investors alike will be keeping a close eye on the performance of HP in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.74, showcasing an 8.64% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.48 billion, up 2.25% from the year-ago period.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.Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. HP is currently a Zacks Rank #3 (Hold).Digging into valuation, HP currently has a Forward P/E ratio of 9.46. This denotes a discount relative to the industry's average Forward P/E of 13.81.One should further note that HPQ currently holds a PEG ratio of 2.87. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Computer - Micro Computers industry was having an average PEG ratio of 1.76.The Computer - Micro Computers industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 91, placing it within the top 37% 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.To follow HPQ in the coming trading sessions, be sure to utilize Zacks.com.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report HP Inc. (HPQ): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks