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 a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Hewlett-Packard 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 $530.0 million.
- HPQ traded 257,365 shares today in the pre-market hours as of 9:25 AM.
- HPQ is up 2.1% today from yesterday's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in HPQ with the Ticky from Trade-Ideas. See the FREE profile for HPQ NOW at Trade-Ideas 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 2.1%. HPQ has a PE ratio of 10.4. 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 15.9 million shares per day over the past 30 days. Hewlett-Packard has a market cap of $52.6 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.79 and a short float of 2.2% with 1.76 days to cover. Shares are up 91.9% year-to-date as of the close of trading on Monday. 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, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including poor profit margins, weak operating cash flow and generally higher debt management risk. Highlights from the ratings report include:
- Powered by its strong earnings growth of 120.91% and other important driving factors, this stock has surged by 112.17% 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.
- HEWLETT-PACKARD CO reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, HEWLETT-PACKARD CO turned its bottom line around by earning $2.62 versus -$6.45 in the prior year. This year, the market expects an improvement in earnings ($3.66 versus $2.62).
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Computers & Peripherals industry and the overall market on the basis of return on equity, HEWLETT-PACKARD CO has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- The gross profit margin for HEWLETT-PACKARD CO is currently lower than what is desirable, coming in at 25.74%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 4.85% significantly trails the industry average.
- Net operating cash flow has decreased to $2,816.00 million or 30.62% 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.
- You can view the full Hewlett-Packard Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.