Why HP (HPQ) Dipped More Than Broader Market Today

HP shares plunged 6.77% to $22.87, underperforming the S&P 500 (-0.92%) and falling 10.38% over the past month versus sector gains; the move comes ahead of HP’s fiscal-quarter earnings due Nov. 25, 2025. Zacks projects Q ahead EPS of $0.92 (down 1.08% YoY) on revenue of $14.79 billion (+5.23% YoY), and full‑year consensus of $3.11 EPS (-7.99%) on $55.2 billion in revenue (flat), with the 30‑day EPS projection sliding 0.54%. Despite a cheap forward P/E of 7.4 versus the industry 12.58, HP carries a Zacks Rank #4 (Sell) and a higher-than‑peer PEG (1.85 vs 1.34), implying valuation support but earnings/momentum concerns—making the upcoming report a key catalyst for near‑term share performance.

Analysis

HP shares plunged 6.77% to $22.87 in the latest session, materially underperforming the S&P 500 (‑0.92%), Dow (‑1.18%) and Nasdaq (‑0.84%). The stock is down 10.38% over the past month versus a 1.64% gain for the Computer & Technology sector and a 1.48% gain for the S&P 500, indicating idiosyncratic weakness ahead of the company's November 25, 2025 earnings release.

Zacks projects next-quarter EPS of $0.92 (‑1.08% YoY) on revenue of $14.79 billion (+5.23% YoY), while full‑year consensus is $3.11 EPS (‑7.99%) on $55.2 billion in revenue (flat). The 30‑day EPS projection has moved 0.54% lower and HP carries a Zacks Rank #4 (Sell), making the upcoming print a clear short‑term catalyst tied to analyst estimate momentum.

Valuation presents mixed signals: HP trades at a discounted forward P/E of 7.4 versus the industry 12.58, but a PEG of 1.85 versus the industry 1.34 implies weaker growth expectations behind that discount. Given the recent underperformance, moderately negative sentiment and estimate downtick, the Nov. 25 report is likely to drive continued volatility — a beat could prompt re‑rating, while a miss or weak guidance would likely accelerate downside.

Key Decisions for Investors

• Avoid initiating new long positions into the November 25 earnings release and consider trimming exposure given the 6.77% intraday drop, 10.38% month decline, and Zacks Rank #4 (Sell)
• Use the earnings print as a binary catalyst: consider adding only after a clear revenue/EPS beat and upward revisions to analyst estimates, otherwise maintain an underweight position
• If holding exposure, implement downside protection (protective puts or collars) into the report and monitor 30‑day estimate revisions and post‑earnings guidance for direction
• For value‑oriented investors, the 7.4 forward P/E suggests valuation support but size any accumulation modestly and wait for PEG convergence toward industry levels or demonstrable stabilization in momentum