HP (HPQ) Dips More Than Broader Market: What You Should Know

In the latest trading session, HP (HPQ) closed at $29.40, marking a -2.36% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.52%. Elsewhere, the Dow lost 0.51%, while the tech-heavy Nasdaq lost 0.32%.

The stock of personal computer and printer maker has risen by 21.22% in the past month, leading the Computer and Technology sector's gain of 1.99% and the S&P 500's gain of 3.3%.

Investors will be eagerly watching for the performance of HP in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 26, 2026. The company's upcoming EPS is projected at $0.66, signifying a 12.00% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $14.6 billion, up 4.82% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.98 per share and a revenue of $58.26 billion, indicating changes of -4.49% and +5.37%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for HP. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. HP currently has a Zacks Rank of #3 (Hold).

In the context of valuation, HP is at present trading with a Forward P/E ratio of 10.11. This represents a discount compared to its industry average Forward P/E of 25.62.

Investors should also note that HPQ has a PEG ratio of 5.08 right now. 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. HPQ's industry had an average PEG ratio of 2.59 as of yesterday's close.

The Computer - Micro Computers industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 30, this industry ranks in the top 13% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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