HP (HPQ) Stock Falls Amid Market Uptick: What Investors Need to Know

Group 1: Stock Performance - HP closed at $24.83, down 2.32% from the previous trading session, underperforming the S&P 500 which gained 0.14% [1] - Prior to the recent trading day, HP shares had increased by 6.63%, outperforming the Computer and Technology sector's gain of 5.36% and the S&P 500's gain of 3.97% [1] Group 2: Earnings Expectations - HP is expected to report EPS of $0.74, a decrease of 10.84% from the prior-year quarter, with a projected revenue of $13.69 billion, reflecting a 1.26% increase from the same quarter last year [2] - For the entire fiscal year, earnings are predicted to be $3.09 per share and revenue at $54.5 billion, indicating changes of -8.58% and +1.75% respectively from the previous year [3] Group 3: Analyst Estimates and Valuation - Recent changes in analyst estimates for HP suggest a favorable outlook on business health and profitability, with the Zacks Rank system indicating a 3 (Hold) rating for HP [4][5] - HP's Forward P/E ratio is 8.24, which is lower than the industry average of 11.92, indicating a potential valuation discount [6] - HP has a PEG ratio of 2.06, compared to the industry average PEG ratio of 1.56, suggesting a higher anticipated earnings growth rate relative to its peers [7] Group 4: Industry Context - The Computer - Micro Computers industry, to which HP belongs, has a Zacks Industry Rank of 92, placing it in the top 38% of over 250 industries [7] - The strength of individual industry groups is measured by the Zacks Industry Rank, with top-rated industries outperforming lower-rated ones by a factor of 2 to 1 [8]