Shares of HP (NYSE:HPQ) gained in today’s trading as investors await the personal computer manufacturer’s Q2 earnings results on May 29 after the market closes. Analysts are expecting earnings per share to come in at $0.81 on revenue of $12.611 billion. This represents a slight increase from the $0.80 per share seen in the year-ago period, according to TipRanks’ data.
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Nevertheless, HPQ has enjoyed a good track record lately when it comes to beating estimates. Indeed, it beat or matched EPS forecasts every quarter since August 2020, as demonstrated in the image below.
Options Traders Anticipate a Fairly Big Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you. Indeed, it currently says that options traders are expecting a 6.64% move in either direction.
Is HPQ Stock a Buy?
Turning to Wall Street, analysts have a Hold consensus rating on HPQ stock based on two Buys, five Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After an 11% rally in its share price over the past year, the average HPQ price target of $30.75 per share implies 7.21% downside risk.
