HP (HPQ) Lagging In Pre-Market Activity
Trade-Ideas LLC identified
(
) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified HP as such a stock due to the following factors:
- HPQ has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $219.6 million.
- HPQ traded 530,659 shares today in the pre-market hours as of 9:29 AM.
- HPQ is down 10.1% today from yesterday's close.
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More details on HPQ:
HP Inc., together with its subsidiaries, provides products, technologies, software, solutions, and services to individual consumers and small- and medium-sized businesses (SMBs), as well as to the government, health, and education sectors worldwide. The stock currently has a dividend yield of 3.5%. HPQ has a PE ratio of 6. Currently there are 8 analysts that rate HP a buy, 1 analyst rates it a sell, and 11 rate it a hold.
The average volume for HP has been 31.3 million shares per day over the past 30 days. HP has a market cap of $25.3 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.50 and a short float of 1.4% with 1.42 days to cover. Shares are down 27.9% year-to-date as of the close of trading on Monday.
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Analysis:
rates HP as a
. The company's strengths can be seen in multiple areas, such as its attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The debt-to-equity ratio is somewhat low, currently at 0.94, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Despite the fact that HPQ's debt-to-equity ratio is low, the quick ratio, which is currently 0.67, displays a potential problem in covering short-term cash needs.
- The revenue fell significantly faster than the industry average of 25.6%. Since the same quarter one year prior, revenues slightly dropped by 8.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Computers & Peripherals industry and the overall market on the basis of return on equity, HP INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, HPQ has underperformed the S&P 500 Index, declining 16.48% from its price level of one year ago. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.
- You can view the full HP Ratings Report.
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