Today's Unusual Social Activity Stock: Hewlett-Packard (HPQ)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Hewlett-Packard ( HPQ) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Hewlett-Packard as such a stock due to the following factors:

  • HPQ has 11x the normal benchmarked social activity for this time of the day compared to its average of 27.79 mentions/day.
  • HPQ has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $431.6 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on HPQ:

Hewlett-Packard Company and its subsidiaries provide products, technologies, software, solutions, and services to individual consumers, small-and medium-sized businesses (SMBs), and large enterprises, including customers in the government, health, and education sectors worldwide. The stock currently has a dividend yield of 2.3%. Currently there are 3 analysts that rate Hewlett-Packard a buy, 4 analysts rate it a sell, and 11 rate it a hold.

The average volume for Hewlett-Packard has been 15.2 million shares per day over the past 30 days. Hewlett-Packard has a market cap of $48.7 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.75 and a short float of 2.2% with 2.09 days to cover. Shares are up 77.7% year to date as of the close of trading on Tuesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Hewlett-Packard as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, weak operating cash flow and poor profit margins.

Highlights from the ratings report include:
  • Powered by its strong earnings growth of 115.81% and other important driving factors, this stock has surged by 103.53% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Computers & Peripherals industry. The net income increased by 115.7% when compared to the same quarter one year prior, rising from -$8,857.00 million to $1,390.00 million.
  • HEWLETT-PACKARD CO reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, HEWLETT-PACKARD CO swung to a loss, reporting -$6.45 versus $3.27 in the prior year. This year, the market expects an improvement in earnings ($3.55 versus -$6.45).
  • Net operating cash flow has declined marginally to $2,674.00 million or 6.04% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • The debt-to-equity ratio of 1.01 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, HPQ has a quick ratio of 0.67, this demonstrates the lack of ability of the company to cover short-term liquidity needs.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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