HP (HPQ) closed at $29.07 in the latest trading session, marking a -2.45% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.32% for the day. Elsewhere, the Dow saw a downswing of 0.34%, while the tech-heavy Nasdaq depreciated by 0.6%.
The stock of personal computer and printer maker has risen by 20.31% in the past month, leading the Computer and Technology sector's gain of 0.32% and the S&P 500's gain of 2.46%.
The upcoming earnings release of HP will be of great interest to investors. The company's earnings report is expected on August 26, 2026. The company's earnings per share (EPS) are projected to be $0.66, reflecting a 12% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $14.6 billion, up 4.82% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.98 per share and revenue of $58.26 billion, indicating changes of -4.49% and +5.37%, 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 business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. HP currently has a Zacks Rank of #3 (Hold).
In terms of valuation, HP is currently trading at a Forward P/E ratio of 10.01. Its industry sports an average Forward P/E of 24.35, so one might conclude that HP is trading at a discount comparatively.
It is also worth noting that HPQ currently has a PEG ratio of 5.03. 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. The Computer - Micro Computers industry had an average PEG ratio of 2.61 as trading concluded yesterday.
The Computer - Micro Computers industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 32, finds itself in the top 14% echelons of all 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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HP Inc. (HPQ): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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