Hewlett-Packard (HPQ) Leads The Pack In Pre-Market Activity

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 $317.0 million.
  • HPQ traded 20,403 shares today in the pre-market hours as of 9:17 AM.
  • HPQ is up 2% today from yesterday's close.

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More details on HPQ:

Hewlett-Packard Company, together with its subsidiaries, provides 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 1.7%. HPQ has a PE ratio of 13.9. Currently there are 9 analysts that rate Hewlett-Packard a buy, 1 analyst rates it a sell, and 9 rate it a hold.

The average volume for Hewlett-Packard has been 9.3 million shares per day over the past 30 days. Hewlett-Packard has a market cap of $69.1 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.45 and a short float of 1.6% with 3.91 days to cover. Shares are up 31.5% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Hewlett-Packard as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, attractive valuation levels, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Compared to its closing price of one year ago, HPQ's share price has jumped by 69.77%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, HPQ should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.3%. Since the same quarter one year prior, revenues slightly increased by 1.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has increased to $3,647.00 million or 36.38% when compared to the same quarter last year. In addition, HEWLETT-PACKARD CO has also modestly surpassed the industry average cash flow growth rate of 35.60%.
  • 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.

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