Dow Today: Hewlett-Packard (HPQ) Higher

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

The Dow Jones Industrial Average ( ^DJI) is trading down 25.0 points (-0.2%) at 13,250 as of Monday, Aug 20, 2012, 1:35 p.m. ET. During this time, 260.2 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 661.9 million. The NYSE advances/declines ratio sits at 1,051 issues advancing vs. 1,858 declining with 145 unchanged.

The Dow component leading the way higher looks to be Hewlett-Packard (NYSE: HPQ), which is sporting a 53-cent gain (+2.7%) bringing the stock to $20.05. Volume for Hewlett-Packard currently sits at 10.9 million shares traded vs. an average daily trading volume of 19.8 million shares.

Hewlett-Packard has a market cap of $38.27 billion and is part of the technology sector and computer hardware industry. Shares are down 25.1% year to date as of Friday's close. The stock's dividend yield sits at 2.7%.

Hewlett-Packard Company and its subsidiaries provide 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 company has a P/E ratio of 7.5, equal to the average computer hardware industry P/E ratio and below the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates Hewlett-Packard as a hold. Among the primary strengths of the company is its attractive valuation levels, considering its current price compared to earnings, book value and other measures. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.
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