HP (HPQ) Stock Sinks As Market Gains: What You Should Know

In the latest trading session, HP (HPQ) closed at $34.40, marking a -0.72% move from the previous day. This change lagged the S&P 500's daily gain of 0.4%. Elsewhere, the Dow gained 0.45%, while the tech-heavy Nasdaq lost 0.82%.

Coming into today, shares of the personal computer and printer maker had gained 9.44% in the past month. In that same time, the Computer and Technology sector gained 14.05%, while the S&P 500 gained 12.15%.

HP will be looking to display strength as it nears its next earnings release, which is expected to be August 30, 2022. In that report, analysts expect HP to post earnings of $1.05 per share. This would mark year-over-year growth of 5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.8 billion, up 3.34% from the year-ago period.

HPQ's full-year Zacks Consensus Estimates are calling for earnings of $4.30 per share and revenue of $65.52 billion. These results would represent year-over-year changes of +13.46% and +3.21%, respectively.

Investors might also notice recent changes to analyst estimates for HP. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.29% lower within the past month. HP is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, HP currently has a Forward P/E ratio of 8.07. This represents a no noticeable deviation compared to its industry's average Forward P/E of 8.07.

We can also see that HPQ currently has a PEG ratio of 2.02. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Computer - Mini computers stocks are, on average, holding a PEG ratio of 2.13 based on yesterday's closing prices.

The Computer - Mini computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 176, which puts it in the bottom 31% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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