HP (HPQ) Rises But Trails Market: What Investors Should Know

Core Viewpoint - HP's stock performance has lagged behind major indices, with a significant decline over the past month, raising concerns ahead of its upcoming earnings report [1][2]. Financial Performance - HP is expected to report an EPS of $0.80, reflecting a 2.44% decrease year-over-year, while revenue is anticipated to reach $13.26 billion, a 3.6% increase compared to the same quarter last year [2]. - For the entire year, Zacks Consensus Estimates project earnings of $3.45 per share and revenue of $54.64 billion, indicating increases of +2.07% and +2.03% respectively compared to the previous year [3]. Analyst Sentiment - Recent revisions to analyst forecasts for HP are crucial, as they often indicate shifts in near-term business trends, with positive changes suggesting optimism regarding the company's profitability [4]. - The Zacks Rank system currently places HP at 3 (Hold), with a 2.76% decline in the consensus EPS estimate over the past month [6]. Valuation Metrics - HP's Forward P/E ratio stands at 6.89, which is lower than the industry's Forward P/E of 8.65, indicating a valuation discount [7]. - The current PEG ratio for HP is 2.48, compared to the average PEG ratio of 1.4 for the Computer - Micro Computers industry [7]. Industry Context - The Computer - Micro Computers industry, part of the broader Computer and Technology sector, holds a Zacks Industry Rank of 89, placing it in the top 36% of all industries [8].