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HP Stock Dips: Earnings Ahead Amidst Market Fluctuations
8 Jul
Summary
- HP stock saw a daily gain of +1.59%, outperforming major indices.
- The company anticipates a 12% year-over-year EPS decline.
- HP's Forward P/E ratio is significantly lower than its industry average.
HP's stock closed recently at $22.96, marking a 1.59% increase for the trading session, which outpaced the S&P 500's 0.45% decline. This daily gain contrasts with a more significant 10.95% loss over the past month, during which the tech sector saw modest growth.
Investors are keenly awaiting HP's upcoming earnings report, with expectations set for a 12% year-over-year drop in Earnings Per Share (EPS) to $0.66. Revenue is projected to reach $14.62 billion, an increase of 4.91% from the previous year.
Full-year estimates suggest EPS of $2.98 and revenue of $58.27 billion, indicating year-over-year decreases in earnings but a rise in revenue. Analyst revisions, which historically influence stock performance, have seen no recent changes for HP's consensus EPS estimate.
HP currently holds a Zacks Rank of #3 (Hold). Valuation metrics reveal a Forward P/E ratio of 7.59, a notable discount compared to its industry's average of 21.93. The company's PEG ratio stands at 3.81, above the industry average of 2.72.
The Computer - Micro Computers industry, to which HP belongs, is ranked within the top 9% of all industries, holding a Zacks Industry Rank of 21.
