In the latest market close, HP (HPQ) reached $25.52, with a +0.51% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 0.58% for the day. At the same time, the Dow added 0.75%, and the tech-heavy Nasdaq gained 0.55%.

The personal computer and printer maker's shares have seen a decrease of 8.31% over the last month, not keeping up with the Computer and Technology sector's gain of 0.6% and the S&P 500's loss of 0.84%.

Analysts and investors alike will be keeping a close eye on the performance of HP in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.80, marking a 2.44% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $13.36 billion, indicating a 4.34% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.39 per share and a revenue of $54.23 billion, signifying shifts of +0.3% and +1.26%, respectively, from the last 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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 4.46% lower. HP is currently a Zacks Rank #5 (Strong Sell).

In the context of valuation, HP is at present trading with a Forward P/E ratio of 7.49. For comparison, its industry has an average Forward P/E of 9.8, which means HP is trading at a discount to the group.

Meanwhile, HPQ's PEG ratio is currently 2.7. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Computer - Micro Computers stocks are, on average, holding a PEG ratio of 1.57 based on yesterday's closing prices.

The Computer - Micro Computers industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 217, placing it within the bottom 13% of over 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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

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